Resources · Glossary
Homebuilding glossary.
Plain-language definitions of the terms homebuyers, agents and builders hear from contract to closing and beyond.
A
Adjustable-Rate Mortgage (ARM)
A home loan with an interest rate that may change after an initial fixed period.
Appraisal
A professional opinion of a home's market value used by lenders during underwriting.
As-Built
A drawing or record that shows the home as it was actually constructed, including changes from original plans.
B
Base Price
The starting price of a home before lot premiums, options, upgrades, and other additions.
Blueprint
A detailed technical drawing that guides construction of a home.
Builder Warranty
A builder's written commitment describing covered defects and the period of coverage after closing.
C
Certificate of Occupancy
A local government document confirming that a completed home meets applicable building codes and can be occupied.
Closing
The final transaction where ownership is transferred, documents are signed, and funds are distributed.
Closing Costs
Fees paid at closing that may include lender, title, insurance, recording, and prepaid expenses.
Construction Loan
Short-term financing used to fund construction, often replaced by a mortgage when the home is complete.
Contingency
A contract condition that must be met for a transaction to proceed, such as financing, appraisal, or inspection.
CRM
Customer relationship management software used to organize leads, buyer conversations, and follow-up activity.
D
Debt-to-Income Ratio (DTI)
The percentage of a borrower's gross monthly income that goes toward monthly debt payments.
Design Center
A builder's showroom or experience where buyers select finishes, fixtures, materials, and upgrades.
Down Payment
The portion of a home's purchase price paid upfront by the buyer.
E
Earnest Money
A good-faith deposit submitted with an offer to show a buyer's intent to purchase.
Elevation
A drawing or view of one side of a home; it can also describe an exterior design variation for a floor plan.
Escrow
A neutral process or account that holds funds and documents until closing conditions are met.
F
Final Walk-Through
A buyer's last inspection before closing to confirm the home's agreed-upon condition.
Fixed-Rate Mortgage
A mortgage with an interest rate that remains the same for the life of the loan.
Floor Plan
A scaled layout showing the rooms, dimensions, and flow of a home.
Framing
The structural stage when walls, floors, and roof systems are built.
G
Gross Living Area (GLA)
The finished, above-grade living space in a home, typically measured in square feet.
H
Home Inspection
An evaluation of a home's visible condition performed by a qualified inspector.
Homebuyer Portal
A secure digital space where buyers can access documents, updates, selections, and communication.
Homeowners Association (HOA)
An organization that manages common areas and enforces community rules, usually funded by homeowner dues.
I
Incentive
A limited offer, credit, rate buydown, upgrade, or bonus designed to encourage a purchase decision.
Inventory Home
A home built or under construction by a builder without a specific buyer contract; also called a spec home.
L
Lead
A prospective buyer who has shown interest and provided enough information for follow-up.
Lead Capture
The process of collecting prospect information from a model home, website, event, ad, or referral source.
Loan Estimate
A standardized lender document outlining estimated loan terms, projected payments, and closing costs.
Lot Premium
An added charge for a homesite with desirable attributes such as a view, corner location, or larger size.
M
Milestone
A significant stage in the homebuilding or buyer journey, such as foundation, framing, drywall, or closing.
Model Home
A completed, furnished home used to showcase a builder's floor plans, finishes, and quality.
Mortgage Pre-Approval
A lender's conditional assessment of a buyer's borrowing capacity based on financial information.
N
New Construction
A newly built home that has not previously been occupied.
New Home Sales Consultant
A sales professional who represents the builder and guides prospects through the new-home buying process.
O
Online Sales Counselor (OSC)
A sales professional who responds to digital inquiries, qualifies leads, and schedules appointments for a builder.
Option
A selectable feature, finish, or upgrade offered by a builder beyond the standard home specification.
Orientation
A meeting where the builder introduces buyers to their home, systems, maintenance needs, and warranty process.
P
Permit
Authorization from a government authority allowing construction work to begin or proceed.
Progress Update
A photo, video, milestone, or message that keeps a buyer informed about their home's construction.
Punch List
A list of incomplete, damaged, or corrective items identified before a home is fully delivered.
Q
Quick Move-In (QMI)
A new home that is complete or nearing completion and available for a faster closing timeline.
R
Rate Buydown
A financing incentive that lowers a buyer's mortgage interest rate for a defined period or the loan term.
Realtor
A real estate professional who is a member of the National Association of REALTORS®.
S
Sales Center
A physical or digital environment where buyers explore homes, communities, availability, and financing options.
Sales Pipeline
A visual view of prospects and buyers organized by their stage in the sales process.
Site Plan
A map showing homesites, streets, amenities, easements, and other features within a community.
Spec Home
A home built by a builder before it is sold to a specific buyer; also called an inventory home.
T
Title Insurance
Insurance that protects owners and lenders against certain claims or defects related to property ownership.
To-Be-Built
A home that has not begun construction and will be built after a buyer selects the plan and homesite.
U
Underwriting
The lender's review of a borrower's finances and the property to decide whether to approve a loan.
V
VA Loan
A mortgage program for eligible veterans, service members, and surviving spouses backed by the U.S. Department of Veterans Affairs.
Virtual Tour
An interactive or video-based experience that lets buyers explore a home or community remotely.
W
Warranty Request
A homeowner's submission asking the builder to review a covered repair or service issue.
Work Order
A documented instruction that assigns a repair, service task, or construction activity to a responsible party.
Z
Zoning
Local land-use rules that regulate how property may be developed and used.