Our team created this to help our clients navigate all the different terms real estate agents frequently use. If you want the full list, give us a call! 781-645-0505
Appraisal
A report highlighting the estimated value of the property completed by a qualified third party. Lenders rely on appraisals to validate a home’s value and ensure they’re not lending more than the home is worth.
Closing Costs
The fees required to complete the real estate transaction, such as loan fees, appraisal fees, title insurance, and escrow fees.
Contingency
With a contingency clause in place, the transaction depends on a certain circumstance. For example, if there’s a home sale contingency, only if the buyer’s house sells by the specified date, the contract moves forward.
Escrow
A neutral third party that handles the transfer of any money during the sale of a home from initial deposit to final funding and closing.
Earnest Money Deposit
Also known as the Good Faith Deposit, earnest money is put down with an offer to show the buyer is serious about purchasing. It is usually refundable in the event a contingency in the sales contract cannot be met.
Fixed Rate Mortgage
A loan in which the interest rate and monthly payment do not change throughout the entirety of the loan.
Comparaitive Market Analysis (CMA)
Also known as a Competitve Market Analysis, it’s an in-depth report on a home’s current value. It tells homeowners what their home is worth in the current market.
Title Insurance
Insurance to protect the buyer and lender against losses arising from disputes over the ownership of a property.
