ARM? GPM? PITI? You should be a cryptologist to understand some of the words purchasers come upon during the property buying procedure. That is why it is better to get acquainted with the most widely used terms not to get lost in the variety of notions peculiar to this field of business.

Adjustable Rate Mortgage (ARM)—a loan, the interest rate of which is regulated in accordance with the fluctuations in the financial market.
Annual Percentage Rate (APR)—the yearly cost of credit for a life of a loan, together with interest, service fees, loan charges, mortgage assurance and other points.
Appraisal—an assessment to define what a piece of estate would be sold for in the market.
Appreciation—the boost in the property cost.
Assessment—a tax imposed on a piece of estate or a value set on the cost of property by a taxing powers.
Balloon—a loan having a range of monthly payments (usually for 5 years or less) with the remaining outstanding debt in a big lump-sum figure at the end.
Certificate of Occupancy—an instrument from an official organization setting out that the estate complies with the requirements of local set of laws, statutes and decrees.
Closing (settlement)—a meeting to set one’s hand on a documents that transmit estate from a seller to a purchaser.
Closing Costs—fees paid at the closing for raising money and transmitting property title.
Conditions, Covenants, and Restrictions (CC and Rs)—the standards that determine the way the estate may be used and the precautions the developer has taken for the benefit of all proprietors in subdivision.
Condominium—a residence in a multiunit complex where every buyer owns a separate unit and all the buyers equally own the common premises.
Conventional Loan—a mortgage credit not assured by a government organization.
Default—a violation of a mortgage deal (for example, dishonoring monthly payments).
Density—the quantity of houses built in a particular area. Acceptable densities are always defined by local authorities.
Down payment—the difference between the sales cost and the mortgage total on a house. The down payment is usually paid at settlement.
Earnest Money—a sum of money given to the seller to confirm that a potential buyer is determined about it.
Escrow—the manipulation of funds or instruments by a third party ex parte of the purchaser or seller.
Federal Housing Administration (FHA)—a federal organization, which assures mortgages having lower down payment demands than the usual loans.
Fixed Rate Mortgage—a mortgage, the interest rate of which is steady during the period of the loan. The payments are not usually stable.