You find the perfect home, make an offer to the seller, pay a couple of fees, and bam! Here are some common real estate terms to know when getting ready to buy a home . For example, increased market demand or inflation can cause property to appreciate. These are rare, and most lenders require the borrower to demonstrate that he or she qualifies for the mortgage in order to assume it. Do Not Sell My Personal Information, Nolo's Essential Guide to Buying Your First Home, What "As Is" and Other Real Estate Marketing Terms Really Mean, final transfer of the ownership of a house, written analysis of a real estate title search, Homeowners: Taxes, Improvements, and More. Home Buying Terminology Here are some home-buying terms that are good to get familiar with in alphabetical order. September 1, 2018 Marlo Wells Blog Home. Buying or selling a property is a huge life event. This shows sellers that you can afford to purchase the home, and obtaining a pre-approval can make it easier to go through the remaining process. Learn about must-know home buyer terms and definitions for every stage of buying a home in this article from Better Money Habits. Condominium: A type of real property ownership in which each owner holds title to his or her individual unit and shares ownership jointly of common areas such as driveways, parking, elevators, outside hallways, and recreation and landscaped areas. If you don’t know what they’re saying, you could put yourself at risk of a bad deal or an unfortunate misunderstanding that can cause endless trouble for closing the deal. Though the real estate agent can explain any terms, read below to learn some of the most common ones before starting the search for a new home. Escrow – Escrow is an additional amount that is added to the monthly payment. When buying a house for the first time, all the new jargon can feel overwhelming. With real estate, title is evidenced by a deed (or other document) recorded in the county land records office. Escrow: The holding of funds or documents by a neutral third party prior to closing a home sale. You just bought a home. Common interest development: A type of housing, composed of individually owned units, such as condominiums, townhouses, or single-family homes, that share ownership of common areas, such as swimming pools, landscaping, and parking. Buying a home shouldn’t be rocket science. As soon as the seller signs on to your purchase offer, you're in contract for the sale of the house, and neither of you can back out without facing consequences—in your case, likely losing your earnest money deposit and, in the seller's case, a potential lawsuit. Your use of this website constitutes acceptance of the Terms of Use, Supplemental Terms, Privacy Policy and Cookie Policy. The. Credit reporting agency: A private company that collects and sells information about a person's credit history. You just bought a home. Legal Fees Paid. Group. However, buying a home actually has a lot of moving parts which include a number of funny real estate terms you’ve probably never heard before. Buying a Lovell Home Buying a Lovell Home. Real estate is also called real property. Help to Buy Schemes. Fellowship Home Loans is authorized to conduct business in AL, AR, AZ, CA, CO, CT, DC, DE, FL, IA, ID, IL, IN, KS, KY, MA, ME, MD, MI, MN, MS, MT, NC, ND, NH, NJ, NM, OK, PA, SC, SD, TN, TX, VT, WA, WI and WY. You find the perfect home, make an offer to the seller, pay a couple of fees, and bam! While these aren’t all the terms you’ll likely come across while buying a home, they are some of the most common and can give you a good starting point while you’re shopping for your new home. You find the perfect home, make an offer to the seller, pay a couple of fees, and bam! Home-Equity Loan. Buying a home shouldn’t be rocket science. Disclosure: The making known of a fact that had previously been hidden; a revelation. Buying a home shouldn’t be rocket science. Copyright © 2020 MH Sub I, LLC dba Nolo ® Self-help services may not be permitted in all states. A title report is prepared by a title company, an abstracter, an attorney, or an escrow company, depending on local practice. Title: Ownership of real estate or personal property. Share on Twitter Tweet. Offer: The buyer's first step in negotiation to buy a home. Or the seller might include a contingency asking for proof that the buyer is financially able to close the deal or for closing to be held off until the seller successfully finds another house to buy. The seller keeps the earnest money if the buyer fails to make timely payment in full (or if there is a similar breach of the agreement). Hazard insurance: A type of insurance found in homeowners' policies, which protects against physical damage to the property caused by unexpected and sudden events such as fires, storms, and vandalism.