Buying a home comes with a lot of new terminology. Some of it is straightforward. Some of it feels like it was invented purely to stress you out.
This guide breaks down common buyer terms so you know what they mean, when they come into play, and why they matter.
An appraisal is ordered by the buyer’s lender to determine the market value of the home.
The lender will only loan based on the appraised value, not the purchase price. If the appraisal comes in lower than expected, the buyer may need to renegotiate, bring additional funds to closing, or reconsider the purchase.
Clear to Close means the lender’s underwriter has approved the loan and all required conditions have been met.
Once a buyer receives CTC, the loan is approved and ready for final documents and closing.
Closing is the day the buyer signs the final legal documents, funds are transferred, and ownership of the home officially changes.
This is also when buyers receive the keys to their new home.
Closing costs are the fees and expenses associated with purchasing a home.
These may include lender fees, attorney fees, title services, recording fees, prepaid taxes, and insurance.
Want a rough estimate of what to expect? You can use this
closing cost calculator,
or talk directly with
a Mantle Realty agent
for a more accurate breakdown based on your situation.
The Due Diligence Request Agreement (DDRA) is submitted by the buyer after inspections are completed.
This form outlines repair requests, credits, or other changes the buyer would like to negotiate before moving forward. Your agent helps guide this process and explain what’s reasonable.
The due diligence fee is paid by the buyer directly to the seller at the beginning of the contract.
This fee is non-refundable and is paid in exchange for the buyer’s opportunity to investigate the home during the due diligence period.
The due diligence period is a negotiated timeframe, typically 30–45 days, during which the buyer evaluates the property.
This includes inspections, appraisals, and reviewing disclosures before deciding whether to move forward with the purchase.
This is one of the most confusing parts of buying a home. Understanding how due diligence works helps buyers avoid surprises and make informed decisions.
Still have questions?
We’ll explain what applies to your purchase and what you actually need to focus on.
Earnest money is a negotiated, refundable deposit submitted by the buyer after an offer is accepted.
This money is held by an agreed-upon escrow agent in a trust account until closing and is credited back to the buyer at closing.
Important: Earnest money is different from the due diligence fee. Earnest money is typically refundable if the contract is terminated properly within the due diligence period.
Buyers have the right to inspect the property during the due diligence period.
Professional inspectors evaluate the overall condition of the home, including the roof, plumbing, electrical systems, appliances, and heating and cooling systems.
Additional inspections may check for termites, radon gas, lead-based paint, or other potential hazards.
Pre-approval is a lender’s formal review of your financial information, including a credit check.
The lender provides a specific loan amount you are approved for, making you a stronger and more prepared buyer when submitting offers.
Pre-qualification is an informal estimate of how much a buyer may be able to borrow.
No credit is pulled. The lender bases this estimate on information provided by the borrower.
Note: Pre-qualification is helpful for early planning, but it does not carry the same weight as a pre-approval.
The purchase price is the amount the buyer agrees to pay for the property.
This number may be negotiated and can change based on inspections, appraisal results, or other contract terms.
The settlement date is the day the buyer signs final legal documents, funds are transferred, and ownership of the home officially changes.
This is also the day buyers typically receive the keys to their new home.
A property is considered under contract once both the buyer and seller have signed the purchase agreement.
This means the home is no longer actively listed, but the transaction is still moving through due diligence, financing, and closing.
The final walkthrough allows the buyer to confirm the home’s condition has not changed since the last showing.
Buyers also verify that agreed-upon repairs have been completed and that the property is in the condition promised in the contract.
Still unsure how these terms affect your purchase?
We’ll explain how each one applies to your situation and what you actually need to worry about.
Mantle Realty is a leading independent real estate firm based in North Carolina, proudly serving communities across the Triad and beyond. We’re passionate about providing clients with cutting-edge technology and genuine hometown service, whether you’re buying your first home, upgrading, or selling a property.
Many of our agents have lived in the areas they serve for years — some their entire lives — and take pride in turning clients into neighbors. With offices in Kernersville, Lexington, and High Point, and agents throughout North Carolina, Mantle delivers local expertise with statewide reach.
At Mantle Realty, we believe home buying is about more than property lines — it’s about people, purpose, and legacy. As an independently owned firm, not a corporate franchise or virtual brokerage, we’re part of the same communities we serve. Our mission is to lead with compassion and purpose so every relationship leaves a lasting impact beyond the sale. When you choose Mantle, you’re not just finding a home — you’re partnering with neighbors who are helping build something that lasts.