If you are a first time home buyer or even a repeat buyer, you quickly realize that real estate has a language all its own. Understanding some of the lingo can help you navigate the process a little easier. By learning a few critical terms, you will be in a better position to ask the right questions and make the best decisions.
- Buyer’s Market – A real estate climate where the number of listings outnumber qualified buyers.
- Seller’s Market – A real estate climate when there are very few desirable properties listed for sale.
- Contingencies – Specific conditions included in an offer to protect the buyer against unexpected situations, such as inspection, loan approval, and appraisal value.
- Earnest Money – Money deposited when the offer is accepted. Subject to any contingencies, this money protects the seller from a buyer who simply changes her mind.
- Escrow Agent – A neutral 3rd party who manages the paperwork in a state where attorneys are not used to conclude the contract.
- Closing Costs – Fees that must be paid by both buyers to conclude the sale.
- Conforming Loan – A conforming loan is a loan limit by which the loan can be sold on the secondary market; a jumbo loan is one which is higher than this limit.
- PMI – PMI, private mortgage insurance is a fee paid by the borrower of a loan that they obtained with less than a 20% down payment.
These are just a few of the common terms used in real estate. If you are involved in a real estate transaction, learning a bit of the common lingo will help you understand the process better and make your home sale or purchase a smooth one.
Buying a home is one of the most significant financial decisions most people will ever make. Yet, many buyers rush through the mortgage process, focusing on getting approved rather than fully understanding their options. As a mortgage professional, I see it often—borrowers end up with loans that don’t truly fit their needs, leading to higher costs, unnecessary stress, or even long-term financial strain.
Buying a home is one of the biggest financial moves you’ll ever make — and how you choose to finance it can make all the difference. Mortgages aren’t one-size-fits-all. The right loan depends on your budget, credit, long-term goals, and even where you plan to buy. Whether you’re a first-time buyer or upgrading to your next home, understanding your financing options can help you make a confident and informed decision. Here’s an overview of some of the most common mortgage types and what they mean for you.
When buying or selling a home, one of the key factors in finalizing a deal is appraisal. A home appraisal is an unbiased estimate of the property's value, conducted by a professional appraiser.