Logo
January 27, 2023

Key Terms for Homebuyers Defined [INFOGRAPHIC]

Smiling couple, with man shaking someone's hand

If you have #homeownershipgoals for 2023, you’ll need to know some of these key terms for home buyers. Read through them, and then check out the infographic for more.


Appraisal

An appraisal is a report highlighting the estimated value of the property completed by a qualified third party.


Closing Costs

Closing costs are the fees required to complete the real estate transaction and they are paid at closing.


Credit Score

Your credit score is a number ranging from 300 to 850 that’s based on an analysis of your credit history.


Down Payment

A down payment is typically 3.5% to 20% of the purchase price of the home, but there are 0% down programs available as well.


Mortgage Rate

The mortgage rate is the interest rate you pay to borrow money when buying a home.


Pre-approval Letter

The pre-approval letter is from a lender and shows what the lender is willing to lend you for your home loan.


Inspection Contingency

The inspection contingency is a provision in a contract that requires an inspection to be completed.


Affordability

Affordability is the measure of whether someone earns enough to qualify for a loan on a typical home based on the most recent price, their income, and mortgage rate data.


Equity

Equity is the value of your home above the total amount of liens against your home.


Final Thoughts

Buying a home[1] is a major transaction that can seem even more complex when you don’t understand the terms used throughout the process.


If you’re looking to become a homeowner this year, it’s important to know these housing terms[2] and how they relate to the current housing market so you feel confident throughout the homebuying process.


Speak with a Realtor®, who will talk you through the process of buying a home and help make your dreams come true.

You may be interested in:

A magnifying glass , pen , and a model house are on a wooden table representing a chart.
March 28, 2025
The Market Outlook from the REALTORS® Confidence Index for sellers increased compared to last month.
A homeowners association document is sitting on a wooden table next to a pen and a book.
March 28, 2025
In many housing markets, homeowners associations (HOAs) and other community associations can be a part of the homebuying (and owning) experience. Here’s what prospective buyers should know:
A woman is kneeling down in front of a house holding a sign that says home for sale.
March 28, 2025
Once you decide to sell your home, your agent will work with you to determine the best strategy to reach potential buyers and attract strong offers. Here are some considerations when marketing your home:
A wooden house with the words property tax written on it
March 28, 2025
Wherever you buy a home in the United States, property taxes are a reality of homeownership. An agent who is a REALTOR® can help connect you with a tax expert in your area, but here are the basics:
A man is holding a sold sign in front of a house.
March 28, 2025
When your home is on the market, you may receive offers from multiple interested buyers. Offers can vary greatly, and you will need to determine which one is best for you. Here's what sellers should know:
A cardboard box with the words moving day written on it
April 1, 2024
As spring approaches, many homeowners gearing up to sell their homes face the daunting task of moving. However, with some innovative strategies and the right supplies, you can make the process smoother and more efficient. Here are five tips tailored specifically for home sellers embarking on a spring move:
A magnifying glass is sitting on top of a table next to two small houses.
April 1, 2024
As spring approaches and the real estate market begins to bloom, homeowners gearing up to sell their homes are undoubtedly eager to secure the best offer possible. The key to achieving this lies in understanding how real estate agents value properties and determine listing prices. Here's a glimpse into the process:
A family stands in front of a house for sale sign
April 1, 2024
Before making the decision to buy a home, it’s important to plan for all the costs you’ll be responsible for. While you’re saving for the down payment for your new home, don’t forget you’ll need to prepare for closing costs too.
a boy is sitting on a man 's shoulders looking at a house.
March 19, 2024
As the spring market approaches, prospective home sellers are gearing up to showcase their properties in the best possible light. One of the most crucial aspects of attracting potential buyers is curb appeal – the first impression your home makes from the street. Here's your comprehensive guide to preparing your home for the spring market and maximizing its curb appeal:
Show More
Share by: