Here are common real estate buying definitions, explained clearly:

Appraisal: A formal, unbiased estimate of a property's fair market value, typically conducted by a licensed appraiser. Lenders require appraisals to ensure the property is worth the loan amount.

Closing Costs: Fees and expenses incurred by the buyer and seller to finalize the real estate transaction. These can include lender fees, title insurance, appraisal fees, taxes, and recording fees.

Contingency: A condition in a real estate contract that must be met for the agreement to be legally binding. Common contingencies include financing contingency (buyer needs to secure a loan), inspection contingency (buyer has the right to inspect the property), and appraisal contingency (property must appraise at or above the purchase price).

Earnest Money Deposit (EMD): A good-faith deposit made by the buyer when submitting an offer to show their serious intent to purchase the property. This money is typically held in escrow and is applied towards the purchase price at closing.

Escrow: A neutral third party that holds funds and documents related to the real estate transaction until all conditions of the contract are met. This ensures a secure and organized closing process.  

Fixed-Rate Mortgage: A type of mortgage where the interest rate remains the same for the entire loan term, providing predictable monthly payments.

HOA Fees: A homeowners association fee (HOA fee) is an amount of money that must be paid monthly by owners of certain types of residential properties, and HOAs collect these fees to assist with maintaining and improving properties in the association.

Home Inspection: A thorough examination of a property's condition by a licensed home inspector. This helps the buyer identify any potential issues or necessary repairs before finalizing the purchase.

Homeowners Insurance: A type of insurance that protects the homeowner's property and belongings against various perils, such as fire, wind damage, and theft. Lenders typically require homeowners insurance. You can edit this number in the mortgage calculator advanced options.

Interest Rate: This field is pre-filled with the current average mortgage rate. Your actual rate will vary based on factors like credit score and down payment.

 

Loan Pre-Approval: A process where a lender reviews a potential borrower's financial information to determine the maximum loan amount they are likely to qualify for. Getting pre-approved strengthens a buyer's offer and helps narrow their home search.

Loan Term: Your loan program can affect your interest rate and monthly payments. Choose from 30-year fixed, 15-year fixed, and more in the calculator.

Loan Type: There are several types of mortgage loans, but the most commonly used are fixed-rate and adjustable-rate loans. Fixed-rate loans have the same interest rate for the entire duration of the loan. That means your monthly payment will be the same, even for long-term loans, such as 30-year fixed-rate mortgages. Two benefits to this loan type are stability, and being able to calculate your total interest up front. Adjustable-rate mortgages (ARMs) have interest rates that can change over time. Typically they start out at a lower interest rate than a fixed-rate loan, and hold that rate for a set number of years, before changing interest rates from year to year. For example, if you have a 5/1 ARM, you will have the same interest rate for the first 5 years, and then your interest rate will change from year to year. The main benefit of an adjustable-rate loan is starting off with a lower interest rate.

Mortgage: A loan secured by real estate property. The borrower makes regular payments to the lender over a specified period until the loan is paid off.

Offer: A formal proposal made by a potential buyer to purchase a property, outlining the price and terms of the sale.

Point (Mortgage Point): A fee paid directly to the lender at closing in exchange for a reduced interest rate. One point equals one percent of the loan amount.  

Principal, Interest, Taxes, and Insurance (PITI): The four main components of a typical monthly mortgage payment.

Property Tax Rate: The mortgage payment calculator includes estimated property taxes based on the home's value. You can edit this in the advanced options.

Title Insurance: Insurance that protects the buyer and lender against any defects or claims against the property's title (legal ownership).

Underwriting: The process by which a lender evaluates a borrower's creditworthiness and the risk associated with lending them money for a mortgage.

Variable-Rate Mortgage (Adjustable-Rate Mortgage - ARM): A type of mortgage where the interest rate is fixed for an initial period and then adjusts periodically based on market conditions.

Zoning: Local regulations that dictate how land can be used within specific areas (e.g., residential, commercial, industrial). Buyers should understand the zoning of a property they are considering.

These definitions provide a foundational understanding of common terms encountered during the real estate buying process. Remember that specific terminology and processes can vary slightly depending on location and individual circumstances.