Commonly used real estate terms

This is the period in which homeowners will pay back their mortgage to their lender; this includes both principal and interest accrued. The principal balance will gradually be paid down through regular, reoccurring payments. 

Throughout the home buying or refinancing process, most transactions will require an appraisal to be completed. A licensed appraiser will provide their professional and unbiased opinion to the value of the home by gathering data on the home itself, the local neighborhood, and the entire local/region market. 

A mortgage commitment letter is a formal document from your lender confirming you've been approved for the loan.

A contingency refers to a clause or statement in a purchase agreement specifying an action of requirement that must be met for the contract to become legally binding. 

Title is typically described as the concept of ownership of a home whereas the deed is an official written document declaring legal ownership. A deed is used to facilitate the transfer from one party to another in purchase transactions.  

An Earnest Money Deposit is a deposit that a buyer makes to a seller to represent the buyers good faith to make the purchase.

A lien is a claim or legal right by a party against assets that are typically used as collateral to satisfy a debt. In most cases, liens will be placed against a home.

A Notary Public is a person authorized to perform legal formalities; this person is a state-appointed official who serves as an impartial witness to defer fraud.

Title insurance is an insurance policy that is meant to protect homebuyers or mortgage lenders, depending on the policy type, from damages or financial losses caused by title defects from before the homeowner purchased the property.

A title search refers to the examination of public records to confirm the property's rightful legal owner.