Are you starting the journey of buying a home in Rhode Island and feeling overwhelmed by all the jargon? If so, you’re not alone! Understanding the language used during the buying process can make everything feel a lot less intimidating — and empower you to make smarter decisions. Here at the Slocum Home Team, led by Nick Slocumand supported by our top agents, we’re committed to helping home buyers in WarwickCranstonCoventryEast GreenwichNorth KingstownProvidence, and across Central Rhode Island navigate the process with confidence.

Here's your go-to glossary of 25 essential real estate terms every Rhode Island buyer should know!

1. Pre-Approval

A lender's written commitment stating how much they're willing to lend you based on a review of your financial information.

2. Earnest Money Deposit (EMD)

A good faith deposit buyers submit with an offer to show they’re serious about purchasing the property.

3. Closing Costs

The fees and expenses (over and above the price of the property) that buyers must pay at closing, including lender fees, title insurance, and taxes.

4. Professional Services Fee

The compensation paid to your buyer’s agent, often negotiated and outlined in a Rhode Island Buyer Representation Agreement.

5. Contingency

A condition that must be met for the sale to move forward (such as a home inspection, appraisal, or mortgage approval).

6. Escrow

A third-party account where your deposits and funds are safely held until closing.

7. Title Search

An examination of public records to confirm a property's legal ownership and find any claims or liens.

8. Title Insurance

Protects buyers and lenders from future claims against the property that weren’t found in the title search.

9. Appraisal

An evaluation performed by a licensed appraiser to determine the market value of the property for the lender.

10. Inspection Contingency

Allows buyers to have the home professionally inspected and negotiate repairs or cancel if major issues are discovered.

11. Final Walkthrough

A last inspection of the home before closing to ensure it's in the agreed-upon condition.

12. Closing Disclosure (CD)

A document that details the final loan terms and all costs associated with the sale, provided at least three days before closing.

13. Multiple Listing Service (MLS)

A database of properties listed for sale by real estate professionals. Slocum Home Team’s listings are part of the State-Wide MLS.

14. Offer

A formal proposal to buy a property at a specified price and terms.

15. Counteroffer

A response to an offer, where the seller proposes different terms or price.

16. Under Contract

The status of a property once a buyer and seller have signed a purchase agreement.

17. Pending

A sale that is moving toward closing, with contingencies cleared or nearly cleared.

18. Professional Home Inspection

An examination by a licensed inspector to assess the property’s structure, systems, and components.

19. Mortgage Rate Lock

A lender's commitment to hold a specific interest rate for a set period while your loan is processed.

20. Debt-to-Income Ratio (DTI)

A percentage comparing your monthly debt payments to your gross monthly income — a key factor in mortgage qualification.

21. Private Mortgage Insurance (PMI)

Required when buyers put down less than 20%. It protects the lender in case of default.

22. Homeowner’s Association (HOA)

A governing body in a community that enforces rules and maintains common areas. HOA dues may apply.

23. Seller’s Disclosure

A document the seller provides to disclose known defects or issues with the property.

24. Deed

The legal document that transfers ownership of the property from the seller to the buyer.

25. Possession Date

The day you legally take ownership and can move into your new Rhode Island home — often the same day as closing!

Wrapping It Up

Buying a home is one of the biggest decisions you’ll ever make — but it doesn’t have to feel overwhelming. When you work with Nick Slocum or one of the trusted agents from The Slocum Home Team, you’re backed by a full-time, full-service team of experienced Realtors dedicated to helping you succeed. Whether you’re buying a home in WarwickEast GreenwichCranstonCoventryNorth Kingstown, or Providence, we’re here to help.

Ready to start your Rhode Island home buying journey? Contact the Slocum Home Team today!