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CENTURY 21 Bessette Flavin – Empowering You with Knowledge

Buying a home is one of the most exciting and important decisions you’ll ever make. At CENTURY 21 Bessette Flavin, we believe informed buyers make confident decisions. That’s why we’ve put together this glossary of key terms to help you feel more comfortable throughout your home buying journey.

Common Real Estate Terms for Buyers

1. Pre-Approval
A lender’s written commitment that you qualify for a specific loan amount based on your income, credit, and financial history. This strengthens your offer when you’re ready to buy.

2. Down Payment
The amount of money you pay upfront toward the home’s purchase price. It’s usually a percentage of the total cost, often between 3%–20%.

3. Closing Costs
Expenses paid at the end of the transaction. These may include title fees, attorney fees, lender fees, and more. Buyers typically pay 2%–5% of the purchase price in closing costs.

4. Escrow Money
A deposit made to show you’re serious about buying. This money is applied toward your down payment or closing costs if the deal goes through.

5. Home Inspection

A professional evaluation of a home’s condition, identifying potential issues with the structure, systems, or safety. This is different from an appraisal.

6. Appraisal

A licensed appraiser’s opinion of a home’s value, usually required by lenders to ensure the property is worth the amount being financed.

7. Title Insurance

Protects you and your lender against future legal claims related to the ownership of the property.

8. Contingency

A condition that must be met for the sale to proceed. Common contingencies include financing, appraisal, and inspection.

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9. Mortgage

A loan used to purchase a home. There are different types of mortgages, including fixed-rate, adjustable-rate (ARM), FHA, VA, and more.

10. Interest Rate

The cost you pay to borrow money from a lender. This is expressed as a percentage of the loan amount and affects your monthly payment.

11. Private Mortgage Insurance (PMI)

Required for conventional loans when your down payment is less than 20%. It protects the lender if you default on the loan.

12. Offer

The proposal a buyer makes to purchase a home, including the price and terms. The seller can accept, reject, or counter the offer.

13. Closing

The final step in the buying process where ownership transfers to the buyer. You’ll sign documents, pay closing costs, and get your keys!

🏆 Your Trusted Local Experts

Our team at CENTURY 21 Bessette Flavin is here to make sure every step of your home buying experience is clear, smooth, and successful. Whether this is your first home or your fifth, we’re committed to helping you make confident and informed decisions.

Need more personalized guidance?
Call us today or stop by our office – we’re here to help!