# Home buying glossary for first-time buyers

> What each home buying term means, and why it matters to you.

By David Knorr, founder of BuyWise Home. Last reviewed October 28, 2026. Web page: https://www.buywisehome.com/guide/glossary

- [Amendment](https://www.buywisehome.com/guide/glossary/amendment): A signed change to your contract, like a repair credit or more time.
- [Appraisal](https://www.buywisehome.com/guide/glossary/appraisal): The lender's independent estimate of what the home is worth.
- [Appraisal gap](https://www.buywisehome.com/guide/glossary/appraisal-gap): When the appraisal comes in below your offer. You cover the difference or renegotiate.
- [APR](https://www.buywisehome.com/guide/glossary/apr): The yearly cost of a loan, with some fees included, as one percentage.
- [Binding Agreement Date](https://www.buywisehome.com/guide/glossary/binding-agreement-date): The day the contract becomes final. Most Georgia deadlines count from it.
- [Buyer agreement](https://www.buywisehome.com/guide/glossary/buyer-agreement): Your written contract with your agent: what they do and how they're paid.
- [Closing costs](https://www.buywisehome.com/guide/glossary/closing-costs): Fees paid at closing on top of the down payment, often 2%–5% of the price.
- [Closing Disclosure](https://www.buywisehome.com/guide/glossary/closing-disclosure): The final terms and costs of your loan, sent three business days before closing.
- [Comparable sales](https://www.buywisehome.com/guide/glossary/comparable-sales): Recent sales of similar homes nearby: the evidence for a fair price.
- [Contingency](https://www.buywisehome.com/guide/glossary/contingency): A condition that lets you back out without losing your deposit.
- [Days on market](https://www.buywisehome.com/guide/glossary/days-on-market): How long a home has been listed. Longer often means more room to negotiate.
- [Debt-to-income ratio](https://www.buywisehome.com/guide/glossary/debt-to-income): Your monthly debts divided by your monthly income. Lenders use it to size your loan.
- [Discount points](https://www.buywisehome.com/guide/glossary/discount-points): Money paid up front to lower your interest rate. One point is 1% of the loan.
- [Down payment](https://www.buywisehome.com/guide/glossary/down-payment): The part of the price you pay in cash. The loan covers the rest.
- [Down payment assistance](https://www.buywisehome.com/guide/glossary/down-payment-assistance): Help with the down payment and closing costs, as a grant or a low- or no-interest loan.
- [Dual agency](https://www.buywisehome.com/guide/glossary/dual-agency): One firm working for both you and the seller. Georgia allows it only with written consent.
- [Due diligence period](https://www.buywisehome.com/guide/glossary/due-diligence-period): The days after signing when, in Georgia, you can walk away for any reason.
- [Earnest money](https://www.buywisehome.com/guide/glossary/earnest-money): A good-faith deposit held in escrow and credited to you at closing.
- [Escrow](https://www.buywisehome.com/guide/glossary/escrow): Money held by a neutral party until the deal closes, and later, your tax and insurance account.
- [FHA loan](https://www.buywisehome.com/guide/glossary/fha-loan): A government-backed mortgage with down payments from 3.5%.
- [Final walkthrough](https://www.buywisehome.com/guide/glossary/final-walkthrough): Your last look at the home before closing, to check it's as agreed.
- [Flood zone](https://www.buywisehome.com/guide/glossary/flood-zone): An area mapped as having a higher chance of flooding. Lenders require flood insurance there.
- [HOA](https://www.buywisehome.com/guide/glossary/hoa): A homeowners association: shared spaces and rules, paid for by owners' dues.
- [Home inspection](https://www.buywisehome.com/guide/glossary/home-inspection): A visual check of the home's condition by a professional inspector.
- [Homeowners insurance](https://www.buywisehome.com/guide/glossary/homeowners-insurance): Pays to repair your home after damage like fire or storms. Your lender requires it.
- [Homestead exemption](https://www.buywisehome.com/guide/glossary/homestead-exemption): A property tax cut on the home you live in. In Georgia, apply by April 1.
- [Listing agent](https://www.buywisehome.com/guide/glossary/listing-agent): The agent who works for the seller.
- [Loan Estimate](https://www.buywisehome.com/guide/glossary/loan-estimate): A standard form every lender gives you, so you can compare loans side by side.
- [Option money](https://www.buywisehome.com/guide/glossary/option-money): A small payment to the seller for the right to walk away during due diligence.
- [PMI](https://www.buywisehome.com/guide/glossary/pmi): Insurance you pay when you put down less than 20%. It protects the lender.
- [Pre-approval](https://www.buywisehome.com/guide/glossary/pre-approval): A lender's written estimate of what it will lend you, after checking your finances.
- [Property tax](https://www.buywisehome.com/guide/glossary/property-tax): A yearly tax on the home's value, usually paid monthly through your mortgage.
- [Radon](https://www.buywisehome.com/guide/glossary/radon): An invisible gas from the soil. A separate test, not part of a standard inspection.
- [Rate lock](https://www.buywisehome.com/guide/glossary/rate-lock): A lender's promise to hold your rate for a set time while your loan is processed.
- [Seller concession](https://www.buywisehome.com/guide/glossary/seller-concession): Money the seller puts toward your closing costs. Also called a seller credit.
- [Seller's disclosure](https://www.buywisehome.com/guide/glossary/sellers-disclosure): The seller's written answers about what they know of the home's condition.
- [Sewer scope](https://www.buywisehome.com/guide/glossary/sewer-scope): A camera run through the sewer line, from the house to the street.
- [Title insurance](https://www.buywisehome.com/guide/glossary/title-insurance): Protects you against old claims on the ownership of the home.
- [Wire fraud](https://www.buywisehome.com/guide/glossary/wire-fraud): Fake wire instructions that send your closing money to criminals.

_General information based on the standard Georgia REALTORS® purchase contract and public guidance. Your own contract decides: read it, and ask your agent or closing attorney about anything that matters. Not legal or financial advice._