Here are a few terms you should know when buying a house:

  1. Down payment: This is the amount of money you pay upfront when you purchase a house. It is typically a percentage of the purchase price, and the remaining balance is paid through a mortgage.
  2. Mortgage: This is a loan that you take out to pay for the purchase of a house. The loan is typically repaid over a period of time, with monthly payments that include both interest and principal.
  3. Interest rate: This is the percentage of the loan amount that you will pay in interest. The interest rate can affect your monthly mortgage payments and the total cost of your loan.
  4. Escrow: This is a process in which a neutral third party holds onto funds or documents on behalf of the buyer and seller during a real estate transaction. The funds or documents are released once all of the conditions of the sale have been met.
  5. Closing costs: These are the costs associated with completing the purchase of a home, including things like fees for a home inspection, title search, and appraisal. Closing costs are typically paid at the time of closing, which is when the sale is finalized.