Resources

Assessment of the property's market value, typically done for the purpose of obtaining 
a mortgage 

A point is equal to one percent of the loan amount

Certain criteria that have to be met in order to finalize the sale 

The percentage of an individual's monthly gross income relative to the amount of debt owed 

A good faith deposit buyers make with an offer 
to show that they are serious about buying the property. In exchange, the seller agrees to stop marketing the property 

A portion of a mortgage payment held in trust by the lender for taxes and hazard insurance 

An expert conducts a formal review of the property to find issues that need to be repaired. A typical home inspection will examine the major systems of the house including foundation, plumbing, electrical, HVAC, siding, 
roof, etc. 

Advanced approval from a bank or other lending institution for a home mortgage 

Potential buyers provide an overall financial picture and mortgage brokers provide an estimate of what level of loan you will likely be pre-approved for 

A background check on the property and the seller to ensure there are no outstanding debts or claims upon the property

Insurance to protect the buyer and lender against losses arising from disputes over the ownership of a property 

Required to protect the lender and homeowner against loss due to fire (first year’s premium charged at closing)

Required on conventional loans made with less than 20% down (All FHA loans require this insurance regardless of the down payment amount)

Funds held in account by the lender to assure future payment for taxes and insurance (a minimum of two months taxes and insurance are charged at closing)