
73 Real Estate Terms To Know In 2023
Is there a difference between a real estate agent and a real estate broker? What is PITI, and why does real estate vocabulary use so many confusing acronyms? If the world of real estate terms has you scratching your head, don’t worry. We’ve created this helpful guide of the top terms to know.
Whether you’re a first-time home buyer or an agent looking to brush up on your knowledge, you’ll find what you need to know here.
Real Estate Terms Glossary
Click the term you want to learn more about to navigate to the definition.
General
- Borrower
- Broker
- Buyer’s agent/listing agent
- Buyer’s market/seller’s market
- Co-borrower
- Commission
- Eminent domain
- Exclusive listing
- Real estate agent
- REALTOR®
Mortgages and Payments
- Adjustable-rate mortgage
- Amortization
- Biweekly mortgage
- Blanket mortgage
- Bridge loan
- Buydown
- Cash-out refinance
- Conventional mortgage
- Deed in lieu of foreclosure
- Default
- Delinquency
- FHA loan
- Fixed-rate mortgage
- Foreclosure
- Grace period
- Homeowners insurance
- Home equity line of credit (HELOC)
- Jumbo loan
- Mortgage
- PITI (principal, interest, tax, insurance)
- Private mortgage insurance (PMI)
- Preapproval
- Principal
- Purchase agreement
- Refinance
- Second mortgage
- Underwriting
- VA loan
Offers and Contingencies
- Addendum
- Appraisal
- As-is
- Backup offer
- Blind offer
- Comparables
- Contingency
- Due diligence
- Earnest money
- Inspection
- Offer/counter offer
- Pending
- Seller’s Disclosure
Addendum
An addendum is an add-on to a contract. In real estate, addendums often clarify offer letters or add a competitive edge. For example, a REALTOR® may use an addendum to make the buyer’s offer contingent on securing a loan.
- Who’s Asking: REALTOR®
Adjustable-Rate Mortgage
Adjustable-rate mortgages (ARM) offer variable interest rates. It usually begins with a lower interest rate than fixed-rate mortgages, but typically changes over time following market rates. If you don’t plan on staying in your home long-term, refinancing to an ARM can sometimes benefit you.
- Who’s Asking: First-Time Home Buyer
Appreciation
Appreciation is a home’s increased value over time. Historically, real estate appreciates from 3% – 5% each year nationally.1
- Who’s Asking: First-Time Home Buyer, REALTOR®
Backup Offer
If a buyer wants a home already under contract, they may request to be “next in line” by submitting a backup offer. Backup offers must still be negotiated with any fees – like earnest money – paid. There can legally only be one backup offer on a home at any given time.
- Who’s Asking: First-Time Home Buyer, REALTOR®
Blanket Mortgage
Blanket mortgages cover more than one plot of land financed by the same borrower. This can help save time and money. For example, a seller ready to buy a second property before their first has sold may use a blanket mortgage to access equity from the first property to put toward the second.
- Who’s Asking: First-Time Home Buyer
Blind Offer
If you put an offer on a home without seeing it in person, you’re making a blind offer. This may happen when an out-of-state buyer is physically unavailable to see a new listing. It can also happen in highly competitive markets when viewing slots are immediately filled but a buyer still wants to compete.
- Who’s Asking: First-Time Home Buyer, REALTOR®
Broker
When buying a home, you may work with a REALTOR® or a real estate broker. While these terms sound the same, they are not. A REALTOR® is a real estate professional who is member of the National Association Of REALTORS® and likely works under a broker or brokerage. Real estate brokers are agents who continue their education and receive a broker license. Real estate brokers can work independently and hire other agents to work under their supervision.
- Who’s Asking: First-Time Home Buyer
Buyer’s Agent/Listing Agent
What’s the difference between a buyer’s agent and a listing agent? A buyer’s agent represents the buyer’s interests – finding a home within budget that matches their preferences. The listing agent represents the seller’s interests – getting a good sale price with a deal likely to close.
- Who’s Asking: First-Time Home Buyer
Buyer’s Market/Seller’s Market
The real estate market will vary in who it favors: buyers or sellers. In a buyer’s market, conditions favor those looking to purchase real estate. This happens when the supply of homes for sale exceeds purchase demand. The reverse is called a seller’s market and favors those looking to sell real estate.
- Who’s Asking: First-Time Home Buyer
Co-Borrower
A co-borrower is someone who is financially responsible for paying back a loan, along with the borrower. If a husband and wife take out a home loan together, one may be the primary borrower and the other a co-borrower.
- Who’s Asking: First-Time Home Buyer
Conventional Mortgage
Conventional mortgages are funded by private lenders rather than government-backed agencies. Most often, these loans are then sold to government-sponsored enterprises like Fannie Mae or Freddie Mac to provide liquidity to the nation’s mortgage market.
- Who’s Asking: First-Time Home Buyer
Default
Default is when a borrower fails to make several loan payments over a period of time. Lenders and government agencies use set timeframes to decide at what point a loan moves from delinquency to default. For example, a loan is not in default until 270 days of missed payments, according to the Code of Federal Regulations.
- Who’s Asking: First-Time Home Buyer
Due Diligence
Due diligence is the period of time when a buyer examines a home’s condition and contract terms before becoming legally obligated to purchase. Due diligence is your time to discover and consider any financial risk associated with investing in a home.
- Who’s Asking: First-Time Home Buyer, REALTOR®
Equal Credit Opportunity Act (ECOA)
This act prevents creditors from discriminating against applicants because of their:
- Age
- Race
- Religion
- Sex
- Marital status
- Receipt of public assistance
- Exercising rights under the Consumer Credit Protection Act
- Who’s Asking: First-Time Home Buyer, REALTOR®
Fair Credit Reporting Act
The Fair Credit Reporting Act (FCRA) protects consumers’ privacy and dictates how credit bureaus are allowed to collect and distribute information. Your lender is allowed to request your credit report during your mortgage application under the FCRA.
- Who’s Asking: First-Time Home Buyer
Fannie Mae
The Federal National Mortgage Association, commonly known as Fannie Mae, is a government-sponsored corporation that helps provide affordable housing. Fannie Mae purchases loans from origininating lenders and sells them to private investors. This helps free lenders from financial burden so they can continue to offer loans to new borrowers.
- Who’s Asking: First-Time Home Buyer
FHA Loan
The Federal Housing Administration (FHA) insures these loans to help provide more affordable housing, especially to first-time home buyers. FHA loans often offer lower down payments, closing costs and credit requirements.
- Who’s Asking: First-Time Home Buyer
FICO Score
A FICO score is the most common credit score report used by lenders. Developed by the Fair Isaac Corporation (FICO®), this report generates a number based on:
- Your payment history
- Owed debts
- Credit history length
- Types of credit currently in use
- How much new credit you have
When considering a FICO® Score, lenders associate a higher number with a person less likely to default on their loan.
- Who’s Asking: First-Time Home Buyer
Freddie Mac
Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, is a government-sponsored corporation that helps provide affordable housing. Freddie Mac purchases loans from original lenders and sells them to private investors. This helps free lenders from financial burden so they can continue to offer loans to new borrowers.
- Who’s Asking: First-Time Home Buyer
Grace Period
If you submit your monthly mortgage payment late, you may incur late fees. However, many loans offer a grace period where late payments do not incur fees. For example, your loan may specify a 2-week grace period, so you could submit your payment up to 2 weeks late without incurring fees.
- Who’s Asking: First-Time Home Buyer
Homeowners Insurance
Homeowners insurance protects your home from damages covered in your policy. Not sure what your policy covers? You can find out by checking your declaration page. Homeowners insurance is required by mortgage lenders, and you must purchase a policy before closing on your home.
- Who’s Asking: First-Time Home Buyer
Apply Online with Rocket Mortgage
PITI (Principal, Interest, Tax, Insurance)
PITI is an acronym used to show the four elements of your monthly mortgage payment: principal, interest, tax and insurance.
- Who’s Asking: First-Time Home Buyer
REALTOR®
A REALTOR® is a real estate agent who is also a National Association of REALTORS® member.
- Who’s Asking: First-Time Home Buyer
Refinance
Refinancing is obtaining a new loan to pay off an original loan on the same home. Often this is done to get better loan conditions, like a lower interest rate.
- Who’s Asking: First-Time Home Buyer
Title
A title shows ownership of a property. It differs from a deed in that a deed is a physical document and a title is not. Title represents the concept of ownership, and can apply to a home, car, boat, etc.
- Who’s Asking: First-Time Home Buyer
VA Loan
A VA loan is guaranteed by the U.S. Department of Veterans Affairs. It is a top benefit of military service for veterans, active-duty military, reservists and qualified surviving spouses. Under a VA loan, you usually don’t need a down payment and will avoid paying PMI.
- Who’s Asking: First-Time Home Buyer
Apply Online with Rocket Mortgage
Now that you can talk the talk, it’s time to walk the walk. See how much you can afford with the Quicken Loans® mortgage calculator.
See What You Qualify For

Victoria Araj
Victoria Araj is a Section Editor for Rocket Mortgage and held roles in mortgage banking, public relations and more in her 15+ years with the company. She holds a bachelor’s degree in journalism with an emphasis in political science from Michigan State University, and a master’s degree in public administration from the University of Michigan.