Credit Report Fee: The fee charged by the lender to obtain a credit report on the buyer.

Closing Costs: A general term for all the estimated charges associated with the transfer of the ownership of the property.

Down Payment: The difference between the purchase price and the loan amount.

Escrow: The deposit of funds or documents with a neutral third party who is instructed to carry out the provisions of an agreement. The purchase agreement is used as the escrow instructions.

Escrow Instructions: Written directions signed by a buyer and seller detailing the procedures necessary to close a transaction and directing the escrow agent how to proceed.

Loan Amount: The amount of the mortgage based on the purchase price, minus the deposit and down payment.

Points: Fees charged by the lender to offset their interest rate if the rate is below the prevailing market rate. One point equals one percentage point- one point on a $100,000 loan is $1,000.

PITI: The estimated house payment including principal, interest, taxes and insurance.

Principal and Interest: The loan payment consisting of the amount to be applied against the balance of the loan and the interest payment on the amount of the loan.

Title Insurance Fee: A one-time fee that a seller typically pays to the title insurance company on behalf of the buyer for the protection against loss or damage in the event of an incorrect search of public records and/or misinterpretation of title. The title insurance policy also shows if there are liens, taxes, encumbrances, deed restrictions or easements. Borrowers obtaining a mortgage will be required to pay for a mortgage title policy.

Total Cash Required: The total amount of cash the buyer will need including down payment, closing costs, insurance, and property taxes.