A document added to the Purchase and Sale Agreement after mutual acceptance that changes terms or clarifies items on a contact, or other documents.

The method in which a loan officer will determine if the property is worth as much (or as little) as the buyer is willing to pay for it.

The date when the Buyer signs paperwork with the title company and lender (if applicable). The property is officially transferred from the Seller to the Buyer on closing day.

The entire package of miscellaneous expenses paid by the buyer and the seller when the real estate transaction closes. These costs include the brokerage commission, mortgage-related fees, escrow or attorney’s settlement charges, transfer taxes, recording fees, title insurance and so on. Closing costs are generally paid at closing. The buyer and the seller each have their own set of costs.

Comparative market analysis or competitive mark analysis. A CMA is a report that shows prices of homes that are comparable to a subject home and that were recently sold, are currently on the market, or was on the market as a pending sale.

A condition that has to be fulfilled in order for another event to happen. Example: The successful purchase of home B is contingent on the successful sale of home.

A written document (though it can be verbal however that is hard to uphold) that is recorded at the County giving a party the right to use someone else’s property for a specific use.

A financial instrument held by a third party on behalf of the other two parties in a transaction. The funds are held by the escrow service until it receives the appropriate written or oral instructions or until obligations have been fulfilled.

The Federal Housing Administration provides mortgage insurance on FHA approved loans- typically the home has to meet certain standards as well as requires a minimum down payment from the borrower.

Anything of value that is permanently attached to or a part of real property. (Real estate is legally called “real property,” while movables are called “personal property”.) Examples of fixtures include installed wall to wall carpeting, light fixtures, window coverings, landscaping and so on.

The process of taking possession of a mortgaged property as a result of someone’s failure to keep up the mortgage payments.

The final inspection of a home by the Buyers before it is sold. Buyers will complete a final walkthrough of the home to make sure any requests for repairs have been fulfilled before the closing papers are signed.

Homes owned and sold by the U.S. Department of Housing and Urban Development, a government agency.

The thorough investigation of a home by a licensed inspector to discover any issues or repairs that need to be made before buying the home.

Stands for Multiple Listing Service and serves as the central hub for brokers to share their real estate listings with cooperating brokers. The MLS’s are the source where real estate broker’s download home listings via an IDX feed to display on public websites.

The date in which the buyer will take possession of the property.

Mortgage insurance protects the mortgage lender against loss if borrowers default on their loans. PMI is required for borrowers of conventional loans with down payment of less than 20%.

The process that allows the prospective buyer to submit a loan application to a lender before the home buying process.

Where the buyer has funding secured by a lender to purchase a home.

When a home owner is attempting to sell his/her home for less than is owed against it. Short sales have to be approved by the lienholder in order to be executed.

An assessment of property lines to determine the exact amount of land that a homeowner owns. Surveys show any easements or encroachments on a property that is noted on the title of the home.

An individual working for mortgage lenders who determines whether or not a borrower’s loan is approved.