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.