Appraiser – The person who decides the market value of a home based on its condition and the selling price of comparable homes recently sold in the area. His or her job is to compute a fair estimate of market value to help the lender decide a reasonable loan amount.

Assessor – A public official who appraises property for tax purposes, determining the assessed value, not the tax rate.

Closing – The conclusion of a real estate transaction, which includes recording of a deed, financial adjustments, signing of notes and disbursement of funds necessary to the sale or loan.

Contingency – A condition that must be met before a contract is binding. For example, the sale of a home might be contingent upon the seller’s paying for certain repairs.

Conventional Loan - A loan made with real estate as security not involving government participation in the form of insuring (FHA) or guaranteeing (VA) the loan.

Fixed-Rate Loan – A loan with the same interest for the life of the loan.

Homeowners Policy – A multiple peril insurance policy commonly called a package policy. Available to owners of private homes, it covers dwellings and contents in case of theft or fire or wind damage, as well as liability for property damage and personal liability.

Impact Fees – A municipal assessment against new residential, industrial or commercial development projects to compensate for the added costs of public services generated by new construction.

Interest Rate Cap – The maximum interest rate charge allowed on an adjustable-rate loan for any one adjustment period during the life of the loan.

Open Mortgage – A mortgage that may be repaid in full at any time over the life of the loan without a prepayment penalty.

Point – A dollar amount paid to a lender for making a loan. A point is one percent of the loan amount. Also called discount points.

Realtor – A member of the National Association of Realtors who subscribes to a strict code of ethics.

Title – Documentary evidence of the right to or ownership of property, which in real estate is the deed. Title may be acquired through purchase, inheritance, gift or exchange, as well as through foreclosure of a mortgage.