What is a mortgage?
A mortgage is a type of loan to finance a property. A mortgage serves as a secure loan that comes with a fixed interest rate and gets paid off over 15 or 30 years.

What is the MLS?
MLS stands for Multiple Listing Service. It’s a network of real estate listings in an area, where buyers can (through a Realtor or the Internet) view what is available in their price range, and with the features they are looking for. It is a system usually run and supported by the local Real Estate Board that has details of almost every home, land, and business listed for sale with a real estate agent.

What is earnest money?
Earnest money is something of value (called “consideration”) that a buyer puts forth to bind an agreement, such as the sale of real estate. Earnest money is forfeited by the buyer if he or she fails to carry out the terms of the contract. It’s up front money from a buyer to show a seller that the buyer is serious about the purchase. The money is usually deposited into an escrow account and is usually applied toward the buyer’s down payment.

What is closing costs?
Closing costs are expenses incurred by buyers and sellers when the ownership of the property is transferred. These are usually negotiable items as to who will be responsible for their payment. Examples of closing costs include recording fees, documentary fees, real estate commission, taxes prorations, settlement fees, and title insurance.

What is an appraisal?
An appraisal is an estimate of the value of a piece of property by a licensed, trained, and experienced individual called an appraiser. They are usually required by a lender to determine how much the property is worth in ascertaining how much they will loan on the property.

What is a conventual loan?
Ideal for borrowers with strong credit, this type of loan is not backed by a government agency like the Federal Housing Administration (FHA).

What are home inspections?
When purchasing a home, it is important to perform a thorough assessment of the home’s structure, equipment, and surroundings. Real estate purchase contracts provide appropriate language to protect buyers from purchasing a structurally unsound home, while at the same time protecting sellers from liability. An inspection can be made by an inspection service company, or a buyer may choose to inspect the home him or herself.

What is a FHA Loan?
A Federal Housing Administration mortgage loan is backed by the government and is typically reserved for buyers with a low credit score or significant amount of debt.

What is a title?
This legal document states who has owned a property in the past and notes any liens associated with it.

What does pre approval mean?
The pre-approval process involves a potential lender or bank reviewing an individual’s finances, including their income, assets, and credit history, to determine how much money can likely be borrowed.

What is mortgage insurance?
This form of insurance can protect a lender in the event that a homeowner defaults on their mortgage.