Real estate comes with a lot of jargon. Here's a plain English guide to the words you'll hear most.
A professional estimate of a home's value, ordered by your lender to make sure the price lines up with the loan.
A loan where the interest rate can change over time, usually starting lower than a fixed rate then adjusting later.
The final step where ownership transfers to you. You sign the paperwork, funds change hands, and you get the keys.
The fees and charges due at closing, typically 2 to 5 percent of the loan, covering lender, title, and other services.
A condition in your offer that must be met for the sale to move forward, like a satisfactory inspection or financing.
The cash you pay up front toward the purchase price. The rest is covered by your mortgage.
A good faith deposit submitted with your offer that shows you're serious. It applies toward your costs at closing.
The portion of your home you actually own. It grows as you pay down your loan and as the home gains value.
A neutral third party holds money or documents during the transaction, and later may hold funds for taxes and insurance.
A loan with an interest rate that stays the same for the entire term, so your principal and interest never change.
A professional review of the home's condition so you know what you're buying before you finalize the deal.
The Multiple Listing Service, the database agents use to list and search homes for sale.
Private Mortgage Insurance, an added monthly cost when your down payment is under 20 percent, protecting the lender.
A lender's written estimate of how much they'll lend you, based on your finances. It makes your offers stronger.
The amount you borrow, not counting interest. Each payment chips away at it over time.
Legal proof of ownership. A title search confirms the seller can sell, and title insurance protects you from claims.
The lender's review of your finances and the property to decide whether to approve your loan.
Your final look at the home right before closing to confirm it's in the agreed condition.
Never feel funny asking. We're happy to explain anything, as many times as it takes.
