List of common terms used in the process of buying a house
Escrow: The process by which a neutral third party holds onto funds and documents on behalf of the buyer and seller, until all terms of the sale have been met.
Title: Legal ownership of a property.
Closing costs: Fees and expenses associated with buying a house, such as appraisal, inspection, and title search fees.
Mortgage: A loan taken out to purchase a house.
Principal: The amount of the loan not including interest.
Interest: The cost of borrowing money from a lender, usually expressed as a percentage of the loan amount.
Equity: The portion of the property that the owner has fully paid for.
Appraisal: A professional assessment of a property's value.
Property taxes: Taxes levied on the property by the government.
Pre-approval: A commitment by a lender to lend a certain amount of money, based on an evaluation of the borrower's creditworthiness.
Down payment: A percentage of the purchase price of the house that the buyer pays upfront, with the rest of the cost financed through a mortgage.
Closing: The final step in the home-buying process, during which the sale is completed and the title to the property is transferred to the buyer.
Home inspection: A professional evaluation of a property's condition.
Warranty Deed: A legal document that transfers ownership of the property from the seller to the buyer.