Here’s a list of common terms in home buying:

1. Mortgage

A loan from a lender to help you purchase a home. The home is collateral, and the lender can foreclose if payments aren’t made.

2. Down Payment

The initial amount of money you pay upfront when purchasing a home, usually expressed as a percentage of the home’s purchase price.

3. Interest Rate

The percentage charged by the lender on the amount borrowed. This rate impacts your monthly payments and the total amount paid over the loan’s term.

4. Principal

The amount of money you borrow from the lender, excluding interest.

5. Escrow

An account managed by a third party where funds are held during the home-buying process, typically for property taxes and insurance.

6. Closing Costs

Fees and expenses paid when the transaction is finalized, including appraisal fees, title insurance, and attorney fees.

7. Appraisal

An evaluation of the property’s value by a licensed appraiser, typically required by the lender to ensure the home is worth the loan amount.

8. Pre-Approval

A lender’s estimate of how much money you can borrow based on a review of your financial information. This often strengthens your offer on a home.

9. Title Insurance

Insurance that protects against losses related to the property’s title, such as ownership disputes or liens.

10. Amortization

The process of gradually paying off the loan through regular payments, with each payment covering both principal and interest.

11. Earnest Money

A deposit made by the buyer to show serious intent to purchase, held in escrow until closing.

12. Private Mortgage Insurance (PMI)

Insurance required if your down payment is less than 20% of the home’s price, protecting the lender in case of default.

13. Fixed-Rate Mortgage

A mortgage with an interest rate that remains constant throughout the life of the loan, providing predictable payments.

14. Adjustable-Rate Mortgage (ARM)

A mortgage with an interest rate that can change after an initial fixed period, potentially resulting in lower or higher payments.

15. Homeowners Association (HOA)

A governing body that oversees the rules, maintenance, and fees for properties within a community or neighborhood.

16. Debt-to-Income Ratio (DTI)

A ratio used by lenders to determine a borrower’s ability to manage monthly payments, calculated by dividing total monthly debt by gross monthly income.

17. Inspection Contingency

A clause in the purchase agreement allowing the buyer to have the home inspected and negotiate repairs or cancel the contract based on the findings.

18. Closing Disclosure (CD)

A document provided to the buyer three days before closing, detailing the final loan terms, monthly payments, fees, and other costs.

These terms are essential for understanding the home-buying process. If you need explanations or further details on specific terms, let me know!