Appraisal
An independent opinion of value commonly required by a lender. It is different from a home inspection.
Closing costs
Transaction expenses paid in addition to—or deducted from—the purchase price. They vary by property, financing, location, and negotiated terms.
Contingency
A contract condition that must be satisfied or addressed, such as financing, inspection, appraisal, attorney review, or the sale of another property.
Earnest money
Money deposited under the purchase contract as evidence of the buyer’s commitment. The contract controls how it is held and when it may be returned or applied.
Escrow
An arrangement where a neutral party holds money or documents until specified conditions are met. The term can also refer to a lender’s account for taxes and insurance.
Preapproval
A lender’s conditional assessment of a borrower based on reviewed financial information. It is not a final loan approval.
Title
The legal ownership interest in real property. Title review and insurance address recorded interests and certain covered defects.