Buying a House Vocabulary Review

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realtor

Back

A real estate agent - represents buyer or seller

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loan

Back

Money borrowed, must be repaid with interest

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earnest money

Back

A deposit made to a seller showing the buyer's good faith in a transaction. Refundable with some conditions.

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appraisal

Back

A formal evaluation of property by an expert, used to establish its market value.

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home inspection

Back

A close examination of a residence to identify defects or potential issues.

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down payment

Back

An initial cash payment made when something is bought on credit.

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mortgage

Back

A bank loan for the purchase of a home.

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interest rate

Back

The proportion of the loan that is charged with interest to the borrower.

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closing costs

Back

Fees paid at the sale of a home. May be paid by either the buyer or the seller.

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principal

Back

The amount of money you borrow, or the amount you owe before interest is calculated.