Glossary

  • MLS (Multiple Listing Service): A database of properties for sale that is shared among real estate agents.
  • Closing: The final step in a real estate transaction, during which the sale is legally completed and ownership of the property is transferred to the buyer.
  • Escrow: A financial arrangement in which a neutral third party holds and regulates payment of the funds required for two parties involved in a given transaction.
  • Appraisal: The process of determining the value of a property by a professional appraiser.
  • Title: The legal document that proves ownership of a property.
  • Agent: A professional who helps people buy, sell, and rent properties.
  • Commission: A fee paid to a real estate agent for their services in a real estate transaction.
  • Equity: The difference between the value of a property and the amount still owed on its mortgage.
  • Closing costs: Fees and expenses associated with buying or selling a property, such as title fees, appraisal fees, and attorney’s fees.
  • Pre-approval: A process in which a lender evaluates a potential homebuyer’s creditworthiness and provides a letter indicating the maximum loan amount for which the buyer is approved.
  • Mortgage: A loan used to purchase a property, usually with the property serving as collateral.
  • Refinance: The process of obtaining a new mortgage to replace an existing one, typically to get a better interest rate or terms.
  • Foreclosure: The process by which a lender takes possession of a property from a borrower who has defaulted on their mortgage.
  • Short sale: A sale of a property in which the proceeds are less than the amount the borrower still owes on their mortgage.
  • Principal: The amount of money borrowed or the amount still owed on a loan, not including interest.