Real Estate Glossary

The process of paying off a loan over time through regular payments that include both principal and interest.

A professional assessment of a property's market value, typically required by lenders before approving a mortgage.

The total yearly cost of a loan expressed as a percentage, including interest and fees.

Fees and expenses paid at the closing of a real estate transaction, typically 2-5% of the home's purchase price.

A condition in a purchase contract that must be met for the sale to proceed, such as a satisfactory home inspection or appraisal.

The portion of a home's purchase price that you pay upfront, typically expressed as a percentage of the total price.

A measure of your monthly debt payments compared to your gross monthly income, used by lenders to assess affordability.

A deposit made by a buyer to demonstrate their serious intent to purchase a property, typically held in escrow.

A neutral third party that holds funds and documents during a real estate transaction, or an account used to collect property taxes and insurance payments.

A loan used to purchase real estate, where the property serves as collateral for the loan.

A database of properties for sale, used by real estate agents to share listing information.

Principal, Interest, Taxes, and Insurance - the four components of a typical monthly mortgage payment.

Insurance required by lenders when a buyer makes a down payment of less than 20%, protecting the lender if the borrower defaults.

A lender's conditional commitment to lend you a specific amount, based on a review of your financial information.

The original amount borrowed for a mortgage, not including interest.

Legal ownership of a property, or the document that proves ownership.

Insurance that protects against financial loss from defects in the title, such as liens or ownership disputes.