What is a down payment?
A down payment is a portion of the purchase price paid upfront by the buyer when securing a property. It is usually a percentage of the total price and is paid in cash. The remaining amount is financed through a mortgage. A larger down payment generally leads to a smaller loan amount and can sometimes result in more favorable loan terms.
What is a mortgage?
A mortgage is a loan provided by a financial institution or lender to help finance the purchase of real estate. The borrower (homebuyer) agrees to repay the loan over a specified period, usually with interest. The property being purchased serves as collateral, which means the lender has the right to seize the property if the borrower fails to repay the loan.
What is a real estate agent?
A real estate agent is a licensed professional who helps buyers and sellers navigate the process of buying or selling properties. They have expertise in the local real estate market, assist with property searches, provide guidance on negotiations, and handle paperwork and legal requirements.