Here are some simple definitions for key real estate terms you're likely to hear over and over again in the process of buying your new home.

TERM: Closing Statement

DEFINITION: Settlement of escrow. For the buyer, it shows deposits made, the loan received or assumed and any credits by escrow instructions, less the sales price, loan costs, insurance, prorate items, etc. For the seller, it includes an accounting of the sales price minus any charges assessed to the seller and any payoffs made on the seller's behalf.

Acceleration Clause Adjustable Rate Mortgage (ARM) Adjustment Period Amortization Appraisal Assessments Assignment Balloon Payment Beneficiary Binder Cap CC&Rs Closing Statement Contingency Conversion Clause Deed Default Demand Earnest Money Easement Encumbrance

Equity Escrow FHA Loan Foreclosure Graduated Payment Mortgage Grantee Grantor Impound Account Homeowners Association (HOA) Legal Description Lien Loan Commitment Loan Policy Loan-To-Value Ratio Mello-Roos Negative Amortization Note Notice of Default Ordinance Origination Fee PITI

Payee Personal Property Planned Unit Development (PUD) Points Power of Attorney Preliminary Title Report Prepayment Penalty Private Mortgage Insurance (PMI) Pro-Rata Purchase Agreement Quitclaim Deed Real Property Reconveyance Recordation Regulation Z Swing Loan Title Title Insurance Policy Variable Interest Rate Zoning