Everything you need to know when buying a house.

Buying a house for the first time? You're going to be hearing a lot of terms and words you might not be familiar with. I've created a simple guide to help explain each one!

Each video explains in more detail, but don't worry they're short, or just read along in the captions below -- it will give you all the important information.

Who is Involved When Buying a House?

The homebuying process involves several professionals: a real estate agent for each buyer and seller, a mortgage lender and the lender's underwriting department, home inspector, appraiser, title company, all working together to help you purchase a home.

What is Earnest Money?

Earnest money is a deposit made by the buyer to show they are serious about purchasing the property. It is typically held in escrow and applied toward the purchase at closing.

What is an Option Period?

The option period is a negotiated timeframe where the buyer can back out of the contract for any reason after a home inspection, usually lasting 7-10 days, but CAN BE NEGOTIATED BY YOUR REALTOR.

What is a Seller’s Disclosure?

A seller's disclosure is a document provided by the seller outlining any known issues with the property, like past repairs or defects.

What is a Home Inspection?

A home inspection is a thorough review of the home’s condition by a licensed inspector to identify any problems that may need repair before closing.

What is a Title Policy?

A title policy protects the buyer and lender from any legal claims against the property due to issues with ownership history or unresolved liens such as back taxes.

What are Seller’s Concessions?

Seller’s concessions are incentives offered by the seller, such as covering closing costs, to make the deal more attractive to the buyer.

What is an Appraisal?

An appraisal is an assessment of the home’s market value, conducted by a licensed appraiser to ensure the property is worth the agreed-upon price.

What is a Home Survey?

A home survey maps out the property’s boundaries, features, and legal description to ensure there are no disputes over the land’s size or location.

What is Included in My Monthly Mortgage Payment?

Your monthly mortgage payment typically includes principal, interest, property taxes, and homeowners insurance and private mortgage insurance (PMI is required for buyer's purchasing a house with less than 20% down).

What is Escrow?

Escrow is a third-party account that holds funds (like earnest money or tax/insurance payments) until their required payment schedule.

What is an HOA?

A Homeowners Association (HOA) is a governing body that enforces rules and regulations for a neighborhood or condo community, often collecting monthly or annual fees to maintain common areas.