An approval letter is a letter provided by your lender, giving consent that you have been approved to exercise your loan with the purchase of a home.

The buyer usually is not responsible for closing costs. Depending on the contract you use and the cooperation of the other party, closing costs fall to the seller. 

A survey is a mapping of your vacant lot or home to determine boundaries and any easements that may exist on the property. It is highly encouraged to have a survey and sometimes required by many title companies because of the financing contingency in the contract.

When a contract becomes an executed contract, the buyer will be asked to provide an earnest deposit into the company escrow account. The deposit shows that the buyer is serious about purchasing the property. The escrow account is the location where the buyer’s deposit is being held until closing.

The principal amount is the amount of the purchase price, which can be found on the contract used.

The seller or buyer can pay for title.

The closing date is determined by the buyer or seller and shown on the executed contract. A typical closing with all contingencies met can happen in 45 days.

An inspection period is an allotted time to give the potential buyer the opportunity to have the necessary inspections and see if the home has any known defects.

Buyers can get their deposit back but only within the due diligence period of their contract. The due diligence period is an inspection time frame in which the buyer makes certain the property he or she is purchasing has any unknown defects and meets his or her satisfaction. If there are defects found and the buyer and seller cannot negotiate a settlement, the buyer may be released from the contract and the deposit refunded.