Loan App (lication)-your lender will take your financial information and process it. This will result (hopefully) in a letter of pre-approval and eventual lead to loan approval if other important criteria are met. This is crucial.  Have your financials ready to go.

CMA-Competitive market analysis.  Your Buyer’s Broker will prepare this for you on the homes you are seriously thinking about making an offer.  The CMA will be a major point of discussion when deciding what to offer a seller. Request your buyer’s agent include adjustments in the CMA.

Ratification-This occurs when the buyer and seller have had a meeting of the minds and it is fully agreed upon in writing with all initials and signatures AND those signatures have been communicated to the other party. Delivery of the paperwork should follow soon after.

EMD- Earnest money deposit- These are funds you place into escrow in good faith you will perform to the terms of the contract. The amount of EMD is negotiable.

HI/PICA/PICRA-As a buyer you will be encouraged (but not required) to get a Home Inspection. If you elect to have an HI, your Realtor will have you sign a PICA (property inspection, contingency addendum).  This will define the terms of the inspection.  Once the inspection is complete your Realtor will have you sign a PICRA (property inspection, contingency removal addendum).

Escrows/pre-paids-these are some of the charges you will have as part of your closing costs.  You may need to pay some of your bills and taxes in advance.

Wood destroying organisms-many people are familiar with termites, but there are several other culprits such as carpenter ants, carpenter bees, powder post beetles, and even fungus. A full inspection should be completed and will likely be required.  Presence of any will likely require a treatment.

Disclosure-you will be the recipient of many disclosures.  Contrary to popular opinion, Realtors do not want to hide anything.  Realtors love to disclose.  Read the disclosures carefully.  Some examples of important disclosures are agency, relationship, ownership, business affiliation, limitation of expertise, and material defect.

Real estate is a fascinating endeavor and these are a few of the terms you may come across as a purchaser in a real estate transaction. I encourage you to learn as much as possible and talk with a trusted and respected Realtor who will guide you.