Every term, in plain English
What each term means and why it matters to you. 39 terms, written for first-time buyers.
A
AmendmentA signed change to your contract, like a repair credit or more time.AppraisalThe lender's independent estimate of what the home is worth.Appraisal gapWhen the appraisal comes in below your offer. You cover the difference or renegotiate.APRThe yearly cost of a loan, with some fees included, as one percentage.B
Binding Agreement DateThe day the contract becomes final. Most Georgia deadlines count from it.Buyer agreementYour written contract with your agent: what they do and how they're paid.C
Closing costsFees paid at closing on top of the down payment, often 2%–5% of the price.Closing DisclosureThe final terms and costs of your loan, sent three business days before closing.Comparable salesRecent sales of similar homes nearby: the evidence for a fair price.ContingencyA condition that lets you back out without losing your deposit.D
Days on marketHow long a home has been listed. Longer often means more room to negotiate.Debt-to-income ratioYour monthly debts divided by your monthly income. Lenders use it to size your loan.Discount pointsMoney paid up front to lower your interest rate. One point is 1% of the loan.Down paymentThe part of the price you pay in cash. The loan covers the rest.Down payment assistanceHelp with the down payment and closing costs, as a grant or a low- or no-interest loan.Dual agencyOne firm working for both you and the seller. Georgia allows it only with written consent.Due diligence periodThe days after signing when, in Georgia, you can walk away for any reason.E
Earnest moneyA good-faith deposit held in escrow and credited to you at closing.EscrowMoney held by a neutral party until the deal closes, and later, your tax and insurance account.F
FHA loanA government-backed mortgage with down payments from 3.5%.Final walkthroughYour last look at the home before closing, to check it's as agreed.Flood zoneAn area mapped as having a higher chance of flooding. Lenders require flood insurance there.H
HOAA homeowners association: shared spaces and rules, paid for by owners' dues.Home inspectionA visual check of the home's condition by a professional inspector.Homeowners insurancePays to repair your home after damage like fire or storms. Your lender requires it.Homestead exemptionA property tax cut on the home you live in. In Georgia, apply by April 1.L
Listing agentThe agent who works for the seller.Loan EstimateA standard form every lender gives you, so you can compare loans side by side.O
Option moneyA small payment to the seller for the right to walk away during due diligence.P
PMIInsurance you pay when you put down less than 20%. It protects the lender.Pre-approvalA lender's written estimate of what it will lend you, after checking your finances.Property taxA yearly tax on the home's value, usually paid monthly through your mortgage.R
RadonAn invisible gas from the soil. A separate test, not part of a standard inspection.Rate lockA lender's promise to hold your rate for a set time while your loan is processed.S
Seller concessionMoney the seller puts toward your closing costs. Also called a seller credit.Seller's disclosureThe seller's written answers about what they know of the home's condition.Sewer scopeA camera run through the sewer line, from the house to the street.T
Title insuranceProtects you against old claims on the ownership of the home.W
Wire fraudFake wire instructions that send your closing money to criminals.No term matches. We'll add it: tell us what you were looking for.