Appraisal

An appraisal is a professional estimate of a property’s market value, conducted by a licensed appraiser. It is typically used by lenders to ensure that the loan amount does not exceed the property’s worth.

Assessed Value

The assessed value is the valuation of a property determined by a local government for tax purposes. This value is used to calculate property taxes and may differ from the market value.

Closing Cost

Closing costs are the fees and expenses paid at the closing of a real estate transaction. These typically include loan origination fees, title insurance, appraisal fees, and recording fees, among others.

Closing Statement

A closing statement is a detailed document provided at the end of a real estate transaction. It itemizes all financial details, including costs, credits, and the final payment for both the buyer and seller.

Contingency

A contingency is a condition or requirement in a real estate contract that must be met for the transaction to proceed. Common contingencies include home inspections, financing approval, and appraisals.

Conventional Mortgage

A conventional mortgage is a home loan not insured or guaranteed by a government agency, such as the FHA or VA. It typically requires higher credit scores and a down payment but may offer lower interest rates.

Credit Money

In real estate, credit money refers to funds provided to the buyer at closing, often as a result of seller concessions or adjustments for prepaid expenses.

Escrow

Escrow refers to a neutral third party holding funds or documents related to the real estate transaction until all conditions of the sale are met.

Earnest Money Deposit

An earnest money deposit is a payment made by the buyer to demonstrate their serious intent to purchase a property. This deposit is held in escrow and applied to the purchase price or refunded if certain contingencies are not met.

Fixed-Rate Mortgage

A fixed-rate mortgage is a home loan with an interest rate that remains constant for the life of the loan, providing predictable monthly payments.

Home Warranty

A home warranty is a service contract that covers the repair or replacement of major home systems and appliances that fail due to normal wear and tear.

Preliminary Title Report

A preliminary title report is an initial document provided by a title company that outlines the ownership history and any existing claims, liens, or other encumbrances on a property.

Title Insurance

Title insurance protects the buyer and lender from financial loss due to title defects, liens, or disputes over ownership that arise after the purchase of the property.

Recording Fees

Recording fees are charges paid to the local government to register a property transaction, ensuring that the new ownership or lien details are part of public records.