Real Estate Terminology Guide

Real estate has a language of its own. This glossary translates the most common terms you’ll hear during a home purchase or sale in Georgia—so you can feel confident when you read contracts, talk with lenders, and make decisions.

“If you understand the terms, you control the process—not the other way around.”

How to use this glossary

Use this page as a quick reference. If a term still feels unclear, send me the word you’re stuck on and I’ll explain it in plain language.

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Offer + contract terms

Contingency: A condition that must be met for the contract to move forward (for example: financing, appraisal, or inspection).

Earnest Money: A deposit that shows good faith when you make an offer. The contract explains how it’s held and when it’s refundable or at risk.

Due Diligence / Inspection Period: The time you use to investigate the property and request repairs or credits.

Seller Concession: Money the seller agrees to contribute toward the buyer’s closing costs or other negotiated items.

Escalation Clause: An offer term that increases your price up to a limit if competing offers come in (terms vary).

Appraisal Gap: The difference between the contract price and the appraised value—sometimes a negotiation point.

Closing Date: The date ownership transfers and documents are signed.

Addendum: A document that modifies or adds terms to the main contract.

Financing terms

Pre-Qualification: A lender’s initial estimate of what you may afford, usually based on self-reported info.

Pre-Approval: A stronger lender review that includes documentation and a more formal approval amount.

Debt-to-Income Ratio (DTI): A comparison of your monthly debts to your monthly income used in mortgage qualification.

Down Payment: The amount you pay upfront toward the purchase price (varies by loan type).

Closing Costs: Fees and costs paid at closing (lender fees, title, escrow, etc.).

Private Mortgage Insurance (PMI): Insurance that may be required when putting less than a certain down payment amount on some loans.

Rate Lock: An agreement that holds an interest rate for a set time period while your loan closes.

Inspection + appraisal terms

Home Inspection: A professional evaluation of the home’s condition. Inspectors note issues; they don’t “pass/fail” a house.

Repair Request: A buyer’s request for specific repairs or credits after inspections.

Appraisal: A lender-ordered estimate of value used to confirm the property supports the loan amount.

Survey: A map of property boundaries and easements—often important for land or boundary clarity.

Title Search: A review of records to confirm legal ownership and identify liens or issues.

HOA: Homeowners Association. Rules and dues may apply in certain neighborhoods/communities.

Closing terms

Closing Disclosure (CD): A lender document that summarizes final loan terms and closing costs (review before closing).

Escrow: A neutral process/account where funds and documents are handled during a transaction.

Deed: The document that transfers ownership.

Final Walkthrough: A last check of the property before closing to confirm condition and agreed repairs.

Recording: When the deed and other documents are officially filed with the county.

FAQs

Is earnest money always non-refundable? Not necessarily. The contract explains when it’s refundable and when it could be at risk.

What’s the difference between pre-qualification and pre-approval? Pre-approval is typically stronger because it involves documentation review.

Can you explain my contract terms? Yes. I’ll walk you through what each section means and what choices you have.

Start with the full process here: https://www.southeastgarealestate.com/pages/home-buying-guide/