Woodstock GA Real Estate Glossary: Terms Every Buyer Should Know

An informal estimate of how much you might borrow based on self-reported income and debts. Carries little weight in a competitive offer situation. In Woodstock, most sellers expect at minimum a pre-approval letter.

A formal review of your credit, income, employment, and assets by a lender, resulting in a written letter stating your maximum loan amount. With Woodstock median prices near $463,000 (Zillow, May 2026), lenders typically want a DTI under 43%.

Monthly debt payments divided by gross monthly income. Conventional loans typically require DTI of 43–45% or lower. Example: $8,000/month income with $2,500 monthly debt = 31.25% DTI — comfortably within guidelines.

Fees paid upfront to reduce your interest rate. One point = 1% of the loan amount. On a $450,000 loan, one point = $4,500. With Georgia's current 30-year fixed at ~6.49% (May 2026), buying points may make sense if you plan to stay 7+ years.

Required on conventional loans when down payment is less than 20%. Typically adds 0.5%–1.5% of the loan amount annually — $187–$563/month on a $450,000 loan. Drops off automatically at 20% equity.

A good-faith deposit made when your offer is accepted, held in escrow. In Woodstock, typically 1%–3% of purchase price ($4,600–$13,900 on a $460,000 home). Applies toward your down payment at closing. If you back out without a valid contingency, you risk losing it.

A condition that must be met for the sale to proceed. Common types: financing (you need loan approval), inspection (back out for major issues), appraisal (home must appraise at or above purchase price). In competitive Woodstock neighborhoods, some buyers waive contingencies — I'll advise you on the risk.

In Georgia, the negotiated window during which buyers can inspect the property and back out for any reason with earnest money returned. Most Woodstock transactions include 7–10 days. This is your most protected window — use it fully.

A provision that automatically increases your offer by a set amount above competing bids, up to a maximum. Example: "I offer $460,000, escalating $2,000 above any competing offer, up to $485,000." Useful in multiple-offer situations on desirable Woodstock properties.

A professional evaluation of the property's condition — structure, roof, HVAC, plumbing, electrical. In Cherokee County, typically $350–$550 and 2–3 hours. Not required but strongly recommended on every transaction.

A licensed appraiser's opinion of the property's market value, required by your lender. If the home appraises below purchase price, you'll need to renegotiate, make up the difference in cash, or back out with an appraisal contingency.

The difference between what you agreed to pay and what the appraiser values the home at. In competitive Woodstock neighborhoods, buyers sometimes agree to cover a gap up to a set amount. Understand the financial risk before agreeing.

A neutral third-party account holding funds during the transaction. Georgia uses attorneys for closings — not escrow companies like some other states. The attorney disburses funds to all parties at closing.

Insurance protecting you from claims against the property's ownership history. Your lender requires a lender's policy; an owner's title policy is optional but I always recommend it.

Fees due at closing beyond the down payment — typically 2%–5% of the loan amount. On a $450,000 purchase, expect $9,000–$22,500 covering lender fees, title, attorney fees, prepaid taxes, and insurance.

An organization governing a community, funded by dues. Most Woodstock neighborhoods — BridgeMill, Eagle Watch, Towne Lake — have HOAs with annual dues of $400–$2,400+. Review HOA documents during due diligence.