Lender and loan charges
Origination or underwriting charges, and any discount points you choose to pay, may appear in the estimate. Appraisal, credit report, and other third-party services can also be listed.
PRACTICAL REAL ESTATE RESOURCES
The next step is easier when the terms are clear.
Plain-English guidance for buying, selling, and evaluating a property. Use it to prepare better questions for your agent, lender, escrow team, and other advisors.
General education only. This page is not personal legal, tax, or lending advice, and it does not recommend a loan product. Confirm transaction details with the professionals involved.
A FEW USEFUL TERMS
Real estate, in plainer language.
These terms show up in conversations and documents. The written contract and your lender's disclosures control the details for a specific transaction.
- Appraisal
- A lender-requested opinion of a property's value for a mortgage decision. It is not a home inspection and does not replace your own assessment of condition or suitability.
- Closing costs
- Charges associated with finalizing a purchase and mortgage, separate from the down payment. The items and amounts depend on the loan and transaction.
- Contingency
- A contract condition tied to an agreed step, deadline, or event, such as financing or an inspection. Its effect depends on the exact agreement and applicable rules.
- Earnest-money deposit
- Money delivered under a purchase agreement as part of the transaction. How it is held, credited, or returned depends on the contract and applicable law.
- Escrow
- In a transaction, a third party may hold funds and documents and coordinate closing instructions. A mortgage escrow account can instead hold money for taxes or insurance.
- Loan Estimate
- A lender's standardized estimate of mortgage terms and costs. Compare the same loan type and features across lenders, then ask which figures can change.
- Closing Disclosure
- The lender's final disclosure of mortgage terms and closing costs. Compare it with the Loan Estimate and ask the lender to explain differences before signing.
- Preapproval
- A lender's preliminary assessment based on information you provide. It is not final loan approval or a promise to fund a purchase.
- Title
- The ownership rights and related public records for a property. Title research, insurance, and closing questions can be reviewed with the title or escrow team.
- Underwriting
- The lender's review of borrower, property, and loan information against its requirements. It can continue after preapproval and may require updated documents.
- Broker compensation
- Payment for real-estate brokerage services. Amount and terms are negotiable, not one universal fixed amount; clarify any written agreement and how payment is handled in the transaction documents.
For California consumer guidance, see the Department of Real Estate'shomebuyer informationopens in a new tab.
CLOSING COSTS & LENDER FEES
The amount due at closing is a sum of pieces.
A mortgage purchase can include lender charges, settlement services, prepaid items, and contract adjustments. Ask for the figures for your specific loan and home.
Title, escrow, and public charges
Title or settlement services, escrow coordination, recording, and government charges may apply. Labels, amounts, and responsibility vary by provider, property, and transaction.
Prepaids and escrow setup
Funds may be collected in advance for items such as insurance or property taxes, plus an initial escrow deposit if the loan requires one. Timing affects some amounts.
CASH TO CLOSE
A total to verify, not a fee category.
Down payment+Closing costs+Prepaids & escrow±Contract adjustments−Deposits & credits
Cash to close is the amount you are expected to bring after the down payment, charges, prepaids, deposits, credits, and adjustments are considered. Your lender's disclosures and settlement statement show the transaction-specific calculation.
Who pays?
The agreement allocates costs where permitted, and lender or program rules and applicable local requirements can affect the choices. Buyers and sellers may each pay different items. Compare the Loan Estimate with the Closing Disclosure and ask the lender or settlement provider about anything unclear.
BEFORE YOU SEARCH
A preapproval starts a conversation. It does not finish one.
A letter can show that you have spoken with a lender, while important decisions and reviews still lie ahead.
A lender's preapproval is a preliminary assessment based on information you provide. The lender may review items such as income, assets, debt, and credit, but the process and depth of review vary. A preapproval is not final approval or a guarantee that the loan will close.
Underwriting can continue after an offer is accepted. The lender may request updated documents, and the property and loan must meet applicable requirements. Ask how long the letter remains current, what assumptions it uses, and what must still be verified.
A lender's estimate describes what it may consider lending. Your personal budget can be lower and should account for the full cost of owning the home and your other financial priorities.
A GENERAL OVERVIEW
Four financing labels, four different structures.
These are descriptions, not recommendations. Eligibility, rates, down payment, fees, loan terms, and property rules depend on the program, lender, borrower, and property.
01
CONVENTIONAL
Not insured by an FHA or VA program.
A conventional mortgage is generally not insured or guaranteed by a federal government loan program. Down-payment options, mortgage insurance, eligibility, and fees vary among products and lenders. Ask how the specific loan is structured and what its Loan Estimate includes.
CFPB: conventional loansopens in a new tab02
FHA
Federal mortgage insurance through approved lenders.
The Federal Housing Administration, part of HUD, insures eligible mortgages made by approved private lenders. HUD is the department, not a generic direct mortgage lender. Program rules, mortgage insurance, property requirements, and borrower eligibility depend on the current loan and lender.
03
VA-BACKED
A private lender makes the loan.
A VA-backed purchase loan is made by a private lender, with a VA guaranty supporting eligible financing. Eligibility, the funding fee and any exemption vary. Other closing costs and lender charges may still apply, so review the written loan estimate and current VA guidance.
04
DSCR INVESTOR FINANCING
Ask the lender how it does the math.
DSCR is a lender-specific label, not a standardized federal consumer mortgage program. A private investor loan may consider property income relative to debt service, but lenders set their own calculation, income assumptions, thresholds, fees, terms, and borrower checks. Do not assume every DSCR lender skips review of personal income or finances.
Request the formula, required documents, reserves, fees, and loan terms in writing before relying on an estimate.
FROM FIRST CONVERSATION TO CLOSING
The broad stages of a purchase and a sale.
A clear sequence helps you know who to ask and what to track. The contract, the lender, the property, and applicable rules determine the actual steps and dates.
BUYER PATH
Buying a home
Set priorities and start financing conversations
Identify the locations, property type, intended use, timing, and features that matter. A lender can explain its process and the information it needs; decide your own comfortable budget separately.
Search and evaluate homes
Compare properties against your priorities. Ask whether seller-provided home or pest inspection reports are available before you write an offer. Review each report's date, scope, findings, and limitations, then confirm with the inspector in writing whether buyer reliance is allowed and whether any separate agreement or fee affects the inspector's responsibility. A fee alone does not guarantee liability coverage; consider arranging your own inspection.
Prepare and negotiate an offer
Discuss price, contingencies, deposits, timing, included items, and other proposed terms with your agent. The signed agreement and applicable rules govern the transaction.
Track the contract and loan steps
If an offer is accepted, keep a written calendar of agreed deadlines. Coordinate due diligence, lender requests, appraisal, title, escrow, and any contract requirements.
Review and complete closing
Read the final loan and settlement documents, ask questions about anything you do not understand, and follow the agreed process for signing, funding, recording, and possession.
Instant PDF download. Letter-size pages with printable checkboxes.
SELLER PATH
Selling a home
Plan the sale and the home's preparation
Discuss timing, condition, presentation, and pricing context with your agent. Decide which preparation steps fit the home, your budget, and your schedule.
Organize records and required disclosures
Gather available property, repair, permit, and improvement records. Confirm disclosure responsibilities and timing with your agent and other qualified professionals.
Bring the property to market
Agree on the marketing plan, showing arrangements, and how inquiries and offers will be handled. Keep access and household safety plans in view.
Review the full offer, not one number
Compare price, financing, deposits, contingencies, deadlines, requested credits, possession, and other terms. Ask for a side-by-side estimate of possible seller proceeds.
Coordinate the agreement through closing
After acceptance, track contract dates, disclosures, title and escrow steps, buyer due diligence, and lender milestones. Complete agreed tasks and transfer possession as the contract provides.
Instant PDF download. Letter-size pages with printable checkboxes.
Keep the agreement close.
Deadlines, contingencies, disclosures, fee allocation, and closing details depend on the signed contract, the loan and property, and applicable rules. Your agent can explain the real-estate steps; a lender, escrow or title provider, and qualified legal or tax professional can answer questions within their roles.
BEFORE THE FIRST SHOWING
Prepare the home around the move you are making.
A useful plan starts with the property's condition, your timing, and the questions buyers may ask. A major renovation is not a default step, and no preparation choice guarantees a return.
Review the property and the plan
Walk through the home with your agent. Discuss comparable properties, likely buyer questions, timing, and the preparation that fits your priorities and budget.
Take care of small repairs
Repair or replace worn or leaking sink faucets where appropriate. Prioritize useful repairs and visible maintenance, and get qualified estimates for work beyond routine upkeep.
Refresh paint and the yard
Consider interior touch-ups or exterior painting where condition calls for it. Weed, mow, trim overgrowth, sweep paths, and tidy the entry. Weigh cost and timing against your plans; no update guarantees a return.
Clean, clear, and plan for showings
Wash windows where safely accessible, clean screens and tracks, declutter surfaces, and clear walkways. Make a plan for valuables, medications, pets, access, and household routines.
Evaluate a composition-shingle roof
Ask a qualified roofing contractor to evaluate whether restoration is appropriate before choosing it. If the contractor determines restoration is appropriate and offers the work, request a written scope and ask whether a written five-year warranty is available. Confirm covered work, exclusions, maintenance, and transferability. Records of the evaluation, work, and warranty may help address buyer questions and uncertainty. Buyers may still evaluate or negotiate based on the roof's condition, warranty terms, and the purchase agreement.
Organize repair records and disclosures
Consider obtaining home and pest inspections before listing. Review the findings with your real-estate professional, then organize reports with available permits, repair receipts, improvement records, warranties, and manuals. Discuss applicable disclosure responsibilities and timing with your agent and qualified professionals. Making reports available before an offer can give buyers useful condition information and may reduce surprises; buyers can still raise concerns or negotiate during escrow.
TAKE A SHORT LIST WITH YOU
Three offer checklists, ready to print.
Choose the list that fits your role. Each button prints only that checklist, with the prompt list and its planning note.
These are planning prompts, not contract forms, legal advice, or a guarantee of what an offer must contain. Review the actual documents and deadlines with the professionals involved in your transaction.
BUYER · BEFORE AN OFFER
Prepare to make an offer
Use these prompts to organize your questions before you review or submit an offer.
- Confirm the property, intended use, priorities, and timing you want the offer to reflect.
- Discuss the specific purchase scenario with your lender, including the estimate, loan conditions, payment, and cash needed to close.
- Set a comfortable spending limit that is yours, not simply the maximum a lender may consider.
- Review available disclosures and property records; list the inspections or specialist input you want to discuss.
- Ask whether seller-provided home or pest inspection reports are available before you write an offer. Review each report's date, scope, findings, and limitations. Ask the inspector directly and in writing whether you, as the buyer, may rely on the report and whether any separate agreement or fee affects the inspector's responsibility; a fee alone does not guarantee liability coverage. Consider arranging an independent inspection.
- Ask your agent to explain the proposed price, contingency choices, deposit, deadlines, possession, and included items in the actual contract.
- Review any written buyer-representation agreement and broker-compensation terms; clarify how payment is addressed in the transaction documents.
- Confirm with your lender what preapproval or supporting documents need updating for this property and offer.
- If the offer is accepted, record each agreed deadline and who is responsible for the next step.
Planning prompts only. This is not a contract form, legal advice, or a guarantee of what an offer must contain. Review the actual documents and applicable deadlines with the professionals involved.
SELLER · OFFER REVIEW
Compare offers with care
A useful comparison looks at the complete terms, the timing, and the questions each offer leaves open.
- Compare the proposed price with estimated proceeds after the costs, credits, and adjustments shown in each offer.
- Review the stated financing and any lender letter or proof of funds provided; financing remains subject to its conditions.
- Compare the deposit amount, delivery timing, and handling described in the agreement.
- Review each contingency, due-diligence period, deadline, and the steps required before it is resolved.
- Note requested seller credits, costs, repairs, included items, and other concessions, then confirm how they are written.
- Compare the proposed closing date, possession timing, and any other dates that affect your move.
- If seller-paid buyer-broker compensation is requested, review the amount, agreement, and proposed wording with your agent; terms are negotiable.
- Ask your agent to explain material differences and prepare comparable estimates using the same assumptions.
Planning prompts only. This is not a contract form, legal advice, or a guarantee of what an offer must contain. Review the actual documents and applicable deadlines with the professionals involved.
INVESTOR · PURCHASE PLANNING
Plan property due diligence
Separate what the property can support from the assumptions that still need to be checked.
- Write down the intended use, target property, operating plan, and the assumptions that would make the purchase fit.
- Review available leases, rent records, occupancy details, and income assumptions; verify what the documents do and do not establish.
- Ask the lender to define its DSCR calculation, qualifying income, debt-service inputs, thresholds, borrower review, reserves, and property rules.
- Get the loan terms, fees, timing, prepayment provisions, and required borrower documents in writing; lender practices vary.
- Evaluate condition, maintenance, repair estimates, title, permitted use, insurance, and operating costs with appropriate professionals.
- Plan for down payment, closing costs, prepaids, due-diligence expenses, repairs, and reserves using transaction-specific estimates.
- Review offer terms, contingencies, access, and all deadlines with your agent and the professionals handling the relevant advice.
- Check tax, legal, insurance, and property-management questions with qualified advisors before relying on an assumption.
Planning prompts only. This is not a contract form, legal advice, or a guarantee of what an offer must contain. Review the actual documents and applicable deadlines with the professionals involved.
