Buying with Future Real Estate

YOUR GUIDE TO REAL ESTATE
Amendments: A change—either to alter, add to,
or correct—to part of an agreement.
Appraisal: An estimated property value resulting
from analysis of facts about the property; an
opinion of value.
Buyer Closing Costs: The expenses incurred by
the buyer during the closing process, including
loan origination fees, appraisal fees, and title
insurance premiums.
Close of Escrow: The date when documents are
recorded and title passes from seller to buyer. On
this date, the Buyer becomes the legal owner, and
title insurance becomes effective.
Closing Disclosure: A document provided to the
buyer by the lender before closing, outlining the
final terms of the mortgage loan, including interest
rate, monthly payments, and closing costs.
Comparable Sales: Sales that have similar
characteristics as the subject real property,
used for analysis in pricing and for the appraisal.
Commonly referred to as “comps.”
Earnest Money Deposit: Down payment made
by a purchaser of real property as evidence of
good faith; a deposit or partial payment.
Easement: A right, privilege, or interest, limited
to a specific purpose that one party has on land
owned by another.
Home Inspection: An assessment conducted
by a professional to evaluate the condition of
a property, identifying any potential issues or
defects.
Home Insurance: Insurance coverage that
protects a homeowner against financial loss
from damages to their property and liability for
accidents that occur on the premises.
Home Warranty: A service contract that covers
the repair or replacement of home systems and
appliances due to normal wear and tear during a
specified period.
Interest Rate: The percentage charged by a
lender for the use of borrowed money, typically
expressed as an annual percentage rate (APR).
Lien: Form of encumbrance that usually makes a
specific parcel of real property the security for the
debt or discharge of an obligation. For example:
judgments, taxes, mortgages, deeds of trust.
Option Period: A specified timeframe during
which a buyer can conduct due diligence on a
property and decide whether to proceed with the
purchase without forfeiting earnest money.
PITI: A payment that combines principal,
interest, taxes and insurance.
Title: A legal document that establishes
ownership of a property and provides details
about any existing liens or encumbrances.