Glossary

Money put down b a potential buyer to show that they are serious about purchasing the home; it becomes part of the down payment if the offer is accepted, is returned if the offer is rejected, or is forfeited if the buyer pulls out of the deal. During the contingency period the money may be returned to the buyer if the contingencies are not met to the buyer's satisfaction.

Anything that affects title to a property, such as loans, leases, easements, or restrictions.

The difference between the value of the home and the borrowed principal still outstanding. As a borrower makes payments and the falue of the home increases, the equity of the home generally increases

Funds held in an account to be used by the lender to pay for home insurance and property taxes. The funds may also be held by a third party until contractual conditions are met and then paid out.