When buying a home for the first time, you’ll be introduced to a new language: real estate terminology. From contract terms like due diligence and earnest money, to inspection lingo like drywall and easement, you may have to ask for a definition on a variety of terms. Don’t worry – your Helen Adams Realty agent will be alongside you to guide you throughout the process.

When preparing to buy a home, you’ll want to know how much home you can afford before starting your search. Pre-approval for a mortgage is a letter from a lender that states how much you’re qualified to borrow. This number is based on your income, credit history, and debts. 

Once your home search begins, your real estate agent may set you up on a home search through the Multiple Listing Service, or MLS. The MLS is a comprehensive database used by licensed real estate agents to share property listings and access real-time market data. A home search through the MLS will show you regular updates for properties hitting the market that fall into the search criteria you’ve discussed with your agent.

Find the perfect property? Amazing! Your real estate agent will prepare a document to submit to the listing agent and the homeowner(s) called your Offer to Purchase. This will detail the price you’re offering to pay for the property, and additional details like preferred closing date, items to convey with the home sale, inspection info, and more. 

After the offer is accepted and you’re Under Contract on the home, the real party starts! Your real estate agent will manage the process to get you moving forward to the closing table. Some terms you may hear throughout this time include:

• Due Diligence Fee: A non-refundable fee paid directly to the seller as soon as the offer is accepted. Different states may have different rules related to this, and the amount will differ among properties.
• Earnest Money Deposit: A deposit made to show that you, the buyer, have serious intent to purchase the property. This money is held in escrow and applied to the purchase at closing. 
• Escrow Account: An account held by your mortgage lender to pay property taxes and homeowners' insurance on your behalf. 
• Inspection Period: After going under contract, you have a set amount of time to thoroughly inspect the home and negotiate any potential repairs with the home sellers. 
• Appraisal: Your mortgage lender will require a licensed appraiser to evaluate the home to determine its market value and ensure the purchase amount supports the mortgage.
• Closing Costs: Expenses paid at the end of the transaction, including lender fees, title insurance, attorney fees, and more.
• Settlement Date: The date when all documents are signed, funds are transferred, and the closing is officially recorded. 

Congrats, you’ve made it to the closing table! The home sellers, home buyers, agents, and attorneys will meet to finalize the closing. At this point, you’ll know what to expect in terms of when you’ll get the keys, final closing costs, and next steps for making your mortgage payments. 

After moving in, you’ll want to get comfortable with your new neighborhood, any Homeowners Association, and settle into your new home! Whether your new residence is move-in ready or needs repairs or design renovations, your agent is available after closing to help with recommending vendors, answer questions, and celebrate your new milestone.