How well do you know real estate terminology? By familiarizing yourself with these common real estate industry terms, you will understand the jargon of the transaction, and hopefully have a pleasurable experience in real estate.
- Pre-approval: Documentation and credit submitted to the lender.
- Offer: A written offer to purchase the home of your choice. Usually written on the state-required contract form. Until accepted and signed by the seller, it is simply your offer.
- Acceptance: The sellers sign and accept your offer. Now you are "under contract" with the sellers to purchase according to the agreed terms.
- Earnest Money: Money paid to secure the consideration of contract.
- Inspection: A home mechanical and structural inspection by a licensed real estate inspector.
- Appraisal: An independent evaluation of the home's value, done by a licensed appraiser.
- Closing costs: Third-party fees required to be paid over and above the down payment (loan, title, inspections fees, to name a few).
- Closing: Signing of the final loan documents and transferring of title to buyer.
These are a few basic terms you will undoubtedly hear during the process. Ask your lender/agent to clarify anything you don't fully understand.
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