Appraisal: A determination of the value of something, such as jewelry, stock, or, in this case, the house you plan to buy. 

APR: A yearly interest rate that includes upfront fees and costs paid to acquire the loan, calculated by taking the average compound interest rate over the term of the loan.

Closing Costs: All settlement or transaction charges (above and beyond the actual cost of the property) that home buyers (or sellers, depending on tradition in your area and what you negotiate with the seller) need to pay at the close of escrow when the property is transferred. 

Closing Disclosure: A form that provides final details about the mortgage loan you have selected.

Contingency: A provision in a contract stating that some or all of the terms of the contract will be altered or voided by the occurrence of a specific event, usually by specific dates leading up to the closing. 

Contract: The document in which the seller agrees to sell the house to the buyer and the buyer agrees to buy it. 

Conventional Loan: A conventional loan is a normal loan. It is typically fixed in its terms and rate.

Counteroffer: The rejection of an offer to enter into a contract, where the rejecting party includes a different offer that changes the terms of the original offer in some way.

Down Payment: The portion of the sale price that you pay in cash. The rest is paid with the mortgage.

Debt Ratio: The ratio of your debt to your income. Banks use this to figure out how much money they're willing to loan you, which of course impacts what price home you're able to buy.

Deed: A deed is a signed legal document that transfers the title of a property to a new holder, granting them the privilege of ownership.

Earnest Money: A deposit made that represents a buyer's good faith to buy a home.

Equity: The amount of value you own in a property, after subtracting the outstanding loan.

Escrow: The holding of funds or documents by a neutral third party (typically a title/escrow company) prior to closing your home sale.

FHA Loan: A program in which the federal government insures the lender if you fail to pay and they have to foreclose. 

Fixed Rate Mortgage: A mortgage loan that has an interest rate that remains constant throughout the life of the loan, usually 15 or 30 years.

Home Insurance: A form of property insurance that covers losses and damages to an individual's residence, along with furnishings and other assets in the home.

Mortgage Insurance: An insurance policy that protects a mortgage lender or titleholder if the borrower defaults on payments, dies or is otherwise unable to meet the contractual obligations of the mortgage.

Pre-Approval: A mortgage lender indicates that they have reviewed a buyer's finances and will approve them for a home loan of a certain amount, pending final review of their finances and the property being purchased.

Principal: The outstanding balance on a loan. Also refers to the portion of a loan payment that pays down your debt (as opposed to interest, which is the bank's profit)

Property Taxes: Taxes paid to local governments on property you own. 

Title Insurance: Protects both real estate owners and lenders against loss or damage occurring from liens, encumbrances, or defects in the title or actual ownership of a property. 

Variable Rate Mortgage: A type of home loan in which the interest rate is not fixed. Instead, interest payments will be adjusted at a level above a specific benchmark or reference rate.