08/26/2022
The 10 important terms First Time Home
buyers should know
1. Earnest Money: The deposit you pay when you sign the
contract to show you’re a serious buyer.
2. Down Payment: The upfront cash payment for a
property, the remaining is paid through a mortgage.
3. Lot Premium: A lot premium is an additional cost that the
builder may charge if the lot you choose for your home is
larger or more desirable in some way compared to other
lots in the subdivision. It may have more privacy, water
views, or a wooded area
4. “Dirt”: This phrase is used to indicate a home being built
from the dirt up and the buyers choose all the home
building options.
5. “Spec”, Inventory or Quick move-in: These terms refer to
a home owned by the builder that have been completed
and ready for sale.
6. Standard Features: The basic builder included
finishes, usually less expensive materials.
7. Upgrades: Additional, more expensive options &
finishes. Upgrades can be as small as a faucet or large
as extra rooms.
8. Eevation: The design of a home plan shows
architectural features such as entry doors, windows,
siding/brick, dormers and any items that create the
visual look.
9. Title (aka Title Deed): The legal document that shows
the history of ownership and transfers of a property –
proves you are the current and rightful owner of the
property.
10. Closing Costs/Closing: The final meeting where both
parties sign the required paperwork and ownership of
the property is transferred from the home seller to you.
Closing costs are fees associated with the transaction,
not including the cost of the home.
