Pre-approval+
A lender’s conditional assessment of what you may be able to borrow based on information and documents reviewed. It is not final loan approval.
Earnest money+
A deposit made under the purchase contract to show commitment. How it is held, applied, or refunded depends on the contract and what happens during the transaction.
Due diligence+
The period and process for researching a home and completing inspections. Your contract controls your deadlines, cancellation rights, and any fees.
Contingency+
A contract condition, such as financing or appraisal. Its exact language determines the protection and deadlines it provides.
Appraisal+
An assessment of a property’s value, commonly ordered by the lender. It is different from a home inspection and does not replace one.
Escrow account+
An account your mortgage servicer may use to hold part of your monthly payment for property taxes and insurance. Amounts can change as those bills change.
Mortgage insurance+
Insurance that protects the lender, not the buyer, on certain loans. Cost, duration, and cancellation rules depend on the loan program.
Closing Disclosure+
The document detailing your final loan terms, projected payments, and closing costs. Most covered mortgages require you to receive it at least three business days before closing.
Seller concessions+
Costs the seller agrees to pay on your behalf under the purchase agreement. Loan programs may limit the types or amounts allowed.
Title insurance+
Insurance covering certain ownership-related risks. Lender and owner policies protect different interests; ask your closing attorney what each policy covers.
Fixtures+
Items attached to the property, such as built-in appliances or lighting. Your purchase contract should clearly state what stays and what is excluded.
Cash to close+
The final amount needed to complete the purchase, accounting for the down payment, closing costs, deposits, credits, and other adjustments.
Pre-approval: A lender’s conditional assessment of what you may be able to borrow based on information and documents reviewed. It is not final loan approval.
Earnest money: A deposit made under the purchase contract to show commitment. How it is held, applied, or refunded depends on the contract and what happens during the transaction.
Due diligence: The period and process for researching a home and completing inspections. Your contract controls your deadlines, cancellation rights, and any fees.
Contingency: A contract condition, such as financing or appraisal. Its exact language determines the protection and deadlines it provides.
Appraisal: An assessment of a property’s value, commonly ordered by the lender. It is different from a home inspection and does not replace one.
Escrow account: An account your mortgage servicer may use to hold part of your monthly payment for property taxes and insurance. Amounts can change as those bills change.
Mortgage insurance: Insurance that protects the lender, not the buyer, on certain loans. Cost, duration, and cancellation rules depend on the loan program.
Closing Disclosure: The document detailing your final loan terms, projected payments, and closing costs. Most covered mortgages require you to receive it at least three business days before closing.
Seller concessions: Costs the seller agrees to pay on your behalf under the purchase agreement. Loan programs may limit the types or amounts allowed.
Title insurance: Insurance covering certain ownership-related risks. Lender and owner policies protect different interests; ask your closing attorney what each policy covers.
Fixtures: Items attached to the property, such as built-in appliances or lighting. Your purchase contract should clearly state what stays and what is excluded.
Cash to close: The final amount needed to complete the purchase, accounting for the down payment, closing costs, deposits, credits, and other adjustments.