Home Inspection â€“ Professional inspection of a home, paid for by the buyer, to evaluate the quality and safety of its plumbing, heating, wiring, appliances, roof, foundation, etc.
Homeownerâ€™s Insurance â€“ A policy that protects you and the lender from fire or flood, a liability such as visitor injury, or damage to your personal property.
Lien â€“ A claim or charge on property for payment of a debt. With a mortgage, the lender has the right to take the title to your property if you donâ€™t make the mortgage payments.
Market Value â€“ The amount a willing buyer would pay a willing seller for a home. An appraised value is an estimate of the current fair market value.
Mortgage Insurance â€“ Purchased by the buyer to protect the lender in the event of default (typically for loans with less than 20% down. Available through a governÂment agency like the Federal Housing Administration (FHA) or through private mortgage insurers (PMI).
Possession Date â€“ The date, as specified by the sales agreement, that the buyer can move into the property. Generally, the it occurs within a couple days of
the Closing Date.
Pre-Approval Letter â€“ A letter from a mortgage lender indicating that a buyer qualifies for a mortgage of a specific amount. It also shows a home seller that youâ€™re a serious buyer.