Adjustable Rate Mortgage
A mortgage loan that has a variable interest rate, lower during early years, might be recommended for buyers planning to sell in few years.

Annual Percentage Rate (APR)
The interest rate of a mortgage loan broken down yearly.

Appraisal
An evaluation set by a licensed appraiser estimating a home’s value based on its condition and size. It is set on the date of the inspection, and generally accepted for the following 30 days.

Assessor
A public official tasked with placing a value on a given property for tax reasons.

Broker
Is typically someone that connects a buyer with larger lending companies.

Buyer’s Agent
A real estate agent that represents the party looking to purchase a home. It is the professional that will work close with your and get your back during negotiations.

Closing Costs
Fees that must be paid at the closing of a deal, including the first year home insurance, hold funds to pay you real estate tax, title insurance and loan-processing costs.

Contingencies
These are conditions posed by one party involved in a sale that must be met prior to the official closing. Inspection, Appraisal and Loan Contingencies.

Counter Offer
After presenting an offer to a seller, buyer might expect a counter offer from the seller to be higher than the initial offer and other seller’s conditions; such as closing earlier, or waiving other rights. The offer process is often a series of offers made back and forth until both parties can agree on a price. Each counter offer void the previous one.

Credit History
The record of an individual’s ability to repay debts. These come into play when mortgage lenders determine how risky a potential client may be.

Earnest Money Deposit
Initial deposit into an escrow account made by a potential buyer to show that they’re serious about purchasing a home. The “bigger is better”.

Escrow
It is a third party licensed by the State that holds onto all money and important paperwork involved in the home buying transaction. It execute all documentation required to protect both parties involved.

Exclusive Listing
A contract that gives a specific real estate agent the sole right to sell a property for an agreed upon time.

Fixed Rate Mortgage
A type of mortgage loan that has a predetermined interest rate throughout the long life of the loan, recommended if you are planning to stay for long time or not expecting to sell.

Fixture
Personal property that is purchased and then permanently installed in a property, typically not removed when the home is sold. The way an item is attached to the house determine if it is personal property or a fixture.

Home Inspection
Professional home inspectors will come to the house you have an accepted offer on, to check out everything in it, searching for problems that should be addressed prior to signing anything. Plumbing, electrical, roof, foundations, etc. This is Contingency that the seller might ask you to waive with all the risks that it represents. You will be required to sign a waiver disclosure.

Homeowners Association
These are organizations that are put in charge of managing the common areas in a planned housing development. Paying their fees will be used for maintenance and improvements of the common areas. Homeowner’s Insurance Bought when you purchase a home to help remove the personal liability from accidents that might occur on your new property, as well as hazard insurance and theft protection. A lender might not fund your loan if a buyer fails to purchase this insurance.

Homeowners Warranty
An insurance that many buyers may buy to protecting them from major repairs after purchase the house.

Listing
An easily viewable statement (hardcopy or digital) that a home is for sale.

Listing Agent
An agent represents the seller, hosting open houses and seeking potential buyers. A certain market is doing.

Mortgage
A contract that ensures a loan will be repaid using a home’s title as leverage.

Offer
A buyer’s proposed price for a piece of property.

Pre-Approval Letter
Official letter from a lender that states the top amount of a loan they’ve pre-approved you for. With good assets and good credit, you’ll probably get more money.

Promissory Note
A written agreement to pay a certain amount over a certain time.

Secondary Market
The buying and selling of existing mortgages between lenders.

Title
A legal document used to prove who actually has ownership of a property. A home is not purchased until the name on the title is changed.

Title Insurance
A fee paid by the buyers of a home to title insurers, who investigate and make sure the home was sold legitimately.

Transfer Tax
A tax that is levied when the title for a property switches hands.