Common terms

Pre-approval: a lender’s written estimate of what you can borrow.

Earnest money: a good-faith deposit that shows you’re serious; it goes toward your purchase.

Contingency: a safety net (like inspection or appraisal) that lets you back out if something’s wrong.

Escrow: a neutral party that holds money and papers until the deal is done.

Appraisal: a professional estimate of a home’s value.

Closing costs: one-time fees paid at the end of the sale.

HOA: the group that runs a community and collects dues.

Equity: the part of your home’s value you actually own.