Quick Definitions

Escrow account - a legally protected holding account into which a buyer's deposit will be retained until released at closing.

Sellers disclosure - a standard form that allows the seller to provide the buyer with basic information about the home and its services.

Title company - the title company acts in a legal capacity, checking on title, arranging title insurance, and coordinating closing and the distribution of funds.

Home appraisal - this is an independent valuation of the home, required by the lender as the basis for the loan amount.

Home inspection - this is carried out at the buyer's expense to identify any problems with the home that may need to be fixed before closing.

Closing statement - also called a HUD1 statement, this is the financial balance sheet that forms the basis of the distribution of funds at closing.