While you might know every detail about the house you’re hoping to buy, you’ll soon find that realtors use a variety of specialized industry terms, just like dentists and mechanics. By learning some of their terms, you can understand more about the process ahead. From title services to escrow, use the following list to feel more in the loop during your next real estate appointment.

4 Real Estate Terms Prospective Homeowners Should Know

1. Title Sevices

When you hire a company for title services, the professionals conduct a search on the property you’re interested in, combing through its history of public records. They’ll find out who legally owns the home, who has purchased it in the past, and if there are any liens, such as tax liens, which might interfere with the closing process. In some cases, the seller might need to pay off these sums before the process can move forward.

2. Mortgage 

A mortgage is, essentially, a home loan, which buyers can use to purchase a property even if they can’t buy the whole thing upfront. Therefore, they must be pre-approved by a mortgage lender, such as a bank, and put a down payment on the house (usually around 20%). Then, the loan will cover the rest of the real estate price, and the buyers will have to pay it off over time.

3. Escrow

An escrow agent is a third party professional who monitors the buying and selling process to ensure the proceedings are fair. Once the closing process begins, the escrow agent must sign off on the paperwork, disburse funds (such as the earnest money and down payment), and transfer the deed to the new owners.

4. Closing Documents 

In order for the sale to be final, these documents must be signed. Common closing documents include the mortgage loan application, the loan’s deed of trust, title service findings, and the deed to the house itself. It may also include riders, which outline understandings specific to the property—such as information found during a home inspection or appraisal.

If you’re looking for title services to proceed with the home buying or selling process, turn to the experts at Chattanooga Title of Tennessee. They have over 30 years of experience in the industry, and they conduct a thorough investigation of your property’s past, eliminating concerns for the future. To learn more about their title searches, visit the website, or call (423) 756-3057 to schedule an appointment.