Appraisal:
What it is: An appraisal is a professional assessment of a property’s market value. It’s conducted by a licensed appraiser who considers factors like the property’s condition, location, recent sales of comparable properties (comps), and current market trends.
Home Loan:
What it is: A home loan is a sum of money borrowed from a lender, like a bank or credit union, specifically for purchasing a property. This loan is secured by the property itself, meaning if you fail to make payments, the lender can foreclose and take ownership.
Mortgage:
What it is: A mortgage is a legal agreement that creates a lien on your property, giving the lender the right to take ownership if you default on your loan payments. It’s essentially the document that formalizes your home loan.
Home Inspection:
What it is: A home inspection is a thorough examination of a property’s condition, conducted by a qualified inspector. It covers major systems like the roof, foundation, plumbing, electrical, heating, and cooling.
Escrow:
What it is: Escrow is a neutral third party that holds funds and documents related to a real estate transaction. They ensure all conditions of the sale are met before disbursing funds and transferring ownership.
Closing Costs:
What they are: Closing costs are expenses beyond the down payment that buyers and sellers pay to finalize a real estate transaction. These can include appraisal fees, loan origination fees, title insurance, taxes, and more.