There are several terms used in the homebuying process. Knowing terms and the ways they relate to today’s market is necessary. For example, when prices of homes or mortgage rates increase, it will affect what you can afford in a home. Same goes for building homes. When building material prices increase or there is a shortage of labor so will the amount of the home.

        There are also terms like appraisals and inspection contingencies that can impact a transaction directly. Appraisals are when your lender assesses the value of your home. Inspection contingencies will give the buyer important and necessary information on the condition of the home.

        If you do not know terms, buying a home can be intimidating as you continue throughout the process. According to Keeping Current Matters, below are some key terms for homebuyers that will help you throughout your process. Also, do not hesitate to ask your salesman or realtor questions when you do not understand something. They are there to help guide you through your process and want to ensure you are comfortable with the steps you are taking.