Buying a House Vocabulary

An estimate of a home's value based on its features and the value of comparable homes.

• Home Appraisal

• Mortgage

• Home Equity

• Closing Costs

An agreement where a third party holds assets (eg. money) during a transaction. For example, a buyer may put a deposit in escrow when buying a house.

• Counteroffer

• Escrow

• Mortgage Preapproval

• Contingency

A type of real estate agent who works for the buyer. They help buyers find and purchase properties that meet their specific needs and budget.

• Listing Agent

• Realtor

• Real Estate Agent

• Buyer's Agent

A loan that is taken out by people and businesses to buy real estate without paying the entire price up front

• Mortgage

• FHA Loan

• VA Loan

• USDA Loan

Homeowners association fees. These cover the cost of maintaining common community areas.

• HOA Fees

• The 28-36 Rule

• Down Payment

• Property Taxes

An examination to certify the condition of a home, including the roof, foundation, basement.

• Home Appraisal

• Home Inspection

• The Rule of Three

• Counteroffer

A document from a lender that states how much and what type of loan you are expected to qualify for.

• Fixed-Rate Mortgage

• Adjustable-Rate Mortgage

• Mortgage Preapproval

• Escrow

A response to an offer that suggests specific changes.

• Escrow

• Counteroffer

• Down Payment Assistance

• The 28-36 Rule

The difference between the typical assets of households of different races and ethnicities. This gap/disparity is due to a variety of factors, including income inequality, generational wealth, housing policies, discrimination in education and employment, and more.

• Racial Wealth Gap

• The Rule of Three

• Contingency

• Home Equity

Programs that help people pay for some of the upfront costs of buying a house. These programs are usually available at the state or local level.

• Adjustable-Rate Mortgage

• Fixed-Rate Mortgage

• USDA Loan

• Down Payment Assistance