Every term you'll hear between pre-approval and keys — in plain English, with the Arizona specifics flagged.
Terms tagged AZ work a specific way in Arizona. When in doubt, ask — decoding jargon is part of the job.
Appraisal
An independent opinion of the home's value ordered by your lender to confirm the property supports the loan.
APR (Annual Percentage Rate)
Your interest rate plus most lender fees, expressed as a yearly rate — the honest way to compare loan offers.
BINSRAZ
Buyer's Inspection Notice and Seller's Response — the Arizona form you use during the inspection period to request repairs (or cancel).
Buyer-Broker Agreement
The written agreement defining how your agent represents you and how they're compensated.
CC&Rs
Covenants, Conditions & Restrictions — the recorded rulebook governing what you can and can't do in a community, HOA or not.
Close Of Escrow (COE)AZ
The day the deed records with the county and ownership legally transfers. In Arizona you typically sign a day or two before COE.
Closing Costs
The fees due at closing beyond your down payment — lender fees, title and escrow charges, prepaids, and more. Budget 2–3% of the price.
Contingency
A condition (inspection, financing, appraisal) that must be satisfied for the sale to proceed — your contractual exits with earnest money intact.
Conventional Loan
A mortgage not backed by a government agency; mortgage insurance applies under 20% down and drops off at 20% equity.
Cure Period NoticeAZ
An Arizona contract notice giving the other party three days to fix a contract breach before cancellation.
Debt-To-Income Ratio (DTI)
Your monthly debt payments divided by gross monthly income — the ratio lenders use to size your loan.
Down Payment
The portion of the price you pay in cash. Not necessarily 20% — conventional starts around 3–5%, FHA at 3.5%, VA at zero.
Earnest Money
Your good-faith deposit (commonly ~1% of price) held by the neutral escrow company and credited to you at closing — refundable through your contingencies.
Equity
The slice of the home you actually own: market value minus what you owe.
EscrowAZ
The neutral third party (in Arizona, a title/escrow company) that holds funds and documents and closes the sale. Also: the account holding your taxes and insurance.
FHA Loan
A government-insured loan with a 3.5% minimum down payment and more flexible credit requirements; mortgage insurance premiums apply.
Fixed vs. Adjustable Rate
A fixed rate never changes; an ARM starts lower and adjusts later. Most Valley buyers choose fixed for predictability.
HOA (Homeowners Association)
The organization managing a community's shared spaces and enforcing CC&Rs, funded by dues. Review its documents and finances during escrow.
Impound Account
The escrow account your servicer uses to collect property taxes and insurance monthly and pay them when due.
Inspection PeriodAZ
Your due-diligence window under the Arizona contract — 10 days by default — to investigate everything and cancel or negotiate repairs.
Loan Estimate
The standardized three-page form every lender must give you — the tool for comparing offers apples to apples.
Loan-To-Value (LTV)
The loan amount divided by the home's value. 80% LTV is the line where conventional mortgage insurance disappears.
PMI (Private Mortgage Insurance)
Insurance protecting the lender on conventional loans with under 20% down; it drops off as you reach 20% equity.
Points (Discount Points)
Prepaid interest: one point costs 1% of the loan and permanently lowers your rate. Worth it if you keep the loan past break-even.
Pre-Approval vs. Pre-Qualification
Pre-qualification is an estimate from a conversation; pre-approval means a lender verified your documents. Sellers only take the second seriously.
RecordingAZ
The county's official entry of the deed — the moment in Arizona when the home becomes yours.
SPDSAZ
Seller's Property Disclosure Statement — the Arizona form where the seller discloses everything they know about the property's condition and history.
Title InsuranceAZ
Protection against ownership defects. In Arizona the seller customarily buys the owner's policy protecting you; the buyer pays the lender's policy.
Underwriting
The lender's verification of your income, assets, credit, and the property before final loan approval.
VA Loan
A zero-down loan guaranteed by the Department of Veterans Affairs for eligible service members, veterans, and surviving spouses — no monthly mortgage insurance.
Walk-Through
Your final pass through the home just before closing to confirm its condition and any agreed repairs.
