HomeRise planning guide
Home Buyer Terms Explained
Plain-language definitions for common words used during a home purchase.
Financing terms
- Preapproval
- A lender’s conditional assessment of how much you may be able to borrow based on submitted financial information.
- Down payment
- The portion of the purchase price paid from the buyer’s funds rather than borrowed.
- Closing costs
- Expenses connected with financing and transferring the property, separate from the purchase price and down payment.
- Appraisal
- An independent opinion of value commonly required by a lender.
Contract terms
- Earnest money
- A deposit showing the buyer’s good-faith intent, handled according to the purchase agreement.
- Contingency
- A contract condition that must be met or addressed for the transaction to continue as written.
- Closing date
- The agreed date for completing the transaction, subject to the contract and closing requirements.
- Concession
- An amount or benefit one party agrees to provide, such as help with certain closing costs, subject to contract and lender limits.
Property review terms
- Home inspection
- A visual examination of accessible systems and components by an inspector.
- Property disclosure
- A seller-provided form addressing known property conditions as required or used in the transaction.
- Title search
- A review of public records to identify ownership, liens, and other matters affecting title.
- Final walk-through
- A buyer’s pre-closing visit to confirm the property’s condition and agreed items.