A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Home InspectionA detailed check of a home's condition by a professional to uncover problems before you commit to buying.
- Closing CostsThe fees paid to finalize a home purchase, covering things like appraisal, title work, and loan processing.
- Loan-to-Value Ratio (LTV)The size of your loan compared to the home's value, used by lenders to gauge risk and set terms.
- MortgageA loan used to buy a home, where the property itself acts as collateral the lender can take if you stop paying.
- Pre-ApprovalA lender's written estimate of how much they will lend you, based on a review of your finances before you shop for a home.
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Plain-English education — not personalized legal, tax, or investment advice.