real estate concepts

Essay by breyahnaCollege, Undergraduate June 2014

download word file, 5 pages 0.0



Real Estate Concepts

Breyahna Ellis

Real Estate Principals

BUSN120 I001 Win 14

American Military University

Karin Conradson

Running head: CONCEPTS PAGE 1


Real Estate Concepts

The real estate closing process has many steps Mortgage, escrow, and closing cost are just a few of them. No one step in the process is more important then the other but all are necessary. A mortgage is a big part of the process it is the loan you will need to secure the home. Escrow is just a third party that helps with the process. The closing costs are made up of several smaller steps and fees. During closing, ownership of a property is transferred from the seller to the buyer. All funds are distributed by the escrow company. The buyer also has to bring a check for all of the mortgage and title fees accumulated along the way.

Closing costs are also paid at this time which consist of all the inspections and any other costs associated with the transfer of the property.

A mortgage is a loan used to purchase a home, where the property serves as the borrower's collateral. Mortgages are used by individuals or businesses to purchase real estate without paying the entire value up front. (Allen & Floyd, 2011) In most cases the mortgage payment could be equal or less than a buyer would pay in rent depending on the size of the home they purchase. Over a set amount of years the borrower pays back the amount of the mortgage plus interest. The property is used as collateral to obtain the loan and once the loan is repaid the property is then owned by the borrower free and clear.

There are many...