Closing: a meeting where all documents necessary to purchase and sell property are handled and where the money to do so is collected

Closing cost: Closing costs are separated into what are called "non-recurring closing costs" and "pre-paid items." Non-recurring closing costs are any items which are paid just once as a cost of obtaining a home loan. "Pre-paids" are items which recur over time, such as property taxes and homeowners insurance.

Comparables: Recent sales of similar properties in nearby areas are used to help determine the market value of a property. Also referred to as "comps."

Earnest money: A deposit paid to bind or ratify a sale.

Escrow account: A “savings account” for which a portion of your yearly property taxes and hazard insurance is held.

Executed contract: A legally binding contract who’s terms have been fully agreed upon by both the buyer and seller

Hazard insurance: Also referred to as “homeowner’s insurance.” An insurance policy combines personal liability insurance and hazard insurance coverage for a dwelling and its contents.

Homeowner’s Warranty: A type of insurance often purchased at closing that will cover repairs to certain items, such as heating or air conditioning, should they break down within a given time frame after the purchase of a home.

Homeowner’s Association: A nonprofit association that manages the common areas of a neighborhood and establishes guidelines for residents. A monthly, quarterly or yearly fee may be assessed. Participation can be mandatory or voluntary and varies by community.

Inspection: A professional assessment of the present condition of any subject property

Leaseback: A written agreement between the seller and the new owner to remain in the property after closing for a specified number of days. The first five days are often at no charge to the seller, but additional days are charged at a rate determined by the new owner of the property

Mortgage Insurance: A lender’s protection in the event that the buyer defaults on their home loan and the property is foreclosed. This amount is dismissed from a buyer’s monthly payment once a home reaches 20% equity or if a buyer opts for a sub-prime loan

Offer: The written contract listing the buyer’s terms to purchase the property, but not yet accepted by the seller

PITI (Principal, Interest, taxes and insurance): The four components of a monthly mortgage payment on impounded loans. Principal refers to the part of the monthly payment that reduces the remaining balance of the mortgage. Interest is the fee charged for borrowing money. Taxes and insurance refer to the amounts that are paid into an escrow account each month for property taxes and mortgage and hazard insurance

HUD 1 Settlement statement: At closing, items that appear on the statement include real estate commissions, loan fees, points, and initial escrow amounts. The totals at the bottom of the HUD-1 statement define the seller's net proceeds and the buyer's net payment at closing.

Title Company: The third party escrow company in which the “closing” of the real estate transaction takes place. The earnest money is deposited to the title company and all documents to transfer ownership of the home are signed here. The money to purchase the property is also exchanged at the title company.