Plain English

First-Time Buyer Glossary: 22 Terms in Plain English

The words a first-time buyer in San Diego County meets, in the order you meet them, from pre-approval to the first tax bill.

Updated October 2026 · Rudy Flores · Coldwell Banker West

Nobody is born knowing what a contingency is. If this is your first purchase, this glossary walks through the terms in the order you will meet them, from pre-approval to the first property tax bill, with San Diego County numbers where they help.

Before you shop

Pre-approval: Where a pre-qualification is a conversation, a pre-approval is paperwork: the lender pulls credit, checks income, assets and debts, and states in writing what it is prepared to lend, subject to the appraisal and final underwriting.
HOA and CC&Rs: In an HOA community, owners pay dues that fund common areas and services and agree to the CC&Rs, which can regulate rentals, parking, pets and changes to the exterior. Read them before you commit.
Months of supply: How many months it would take to sell every home now listed at the recent pace of sales. Under about four months usually favors sellers and over about six usually favors buyers, though local conditions vary.
Local example: In the week ending Sep 19, 2026, the San Diego metro area (San Diego–Chula Vista–Carlsbad) had 3.4 months of supply.
Typical home value: The typical home value is an index, not an appraisal: a smoothed estimate for the middle price tier that helps you follow changes over months and years.
Local example: For the San Diego metro area (San Diego–Chula Vista–Carlsbad) as a whole, Zillow’s typical home value was $930,785 in Aug 2026.
First-time buyer programs: Programs from the state, counties and lenders that can help with a down payment or closing costs, or offer special loan terms, if you meet the eligibility rules. Details and funding change often, so a lender can tell you what is available.
ADU and junior ADU: State law encourages accessory dwelling units, and cities must follow its rules when they permit them. They come in several forms, from detached cottages to garage conversions to junior ADUs built inside the main house.
Local example: Each city or county applies its own ADU ordinance within the state rules.
Market temperature: A ZIP code’s “temperature” is Zillow’s rating of how competitive its market is: how fast homes go pending and how often prices are cut. Hot markets favor sellers; cold ones favor buyers.
Proposition 19: Prop 19 changed two things: it opened a base-transfer option for older, disabled and disaster-displaced owners, and it narrowed the tax break for homes passed from parents to children.
Conforming and jumbo loans: The conforming limit is the largest loan Fannie Mae and Freddie Mac will buy in an area, set each year by the FHFA. Loans above it are called jumbo loans and can carry different terms.
Local example: The 2026 one-unit limit is $1,104,000 in San Diego County.
Mello-Roos (community facilities district): Also called a CFD, a Mello-Roos district lets a developer or city finance improvements through a special tax on the homes it serves. The amount and the end date vary by district, and both should be checked before you buy.
The San Diego County Assessor publishes information on Mello-Roos; ask whether the address is in a district.
Comparative market analysis (CMA): To price a home, an agent looks at sold homes of the same size, style and condition on nearby streets and adjusts for differences. The result is a CMA: a guide for pricing, not a formal appraisal.
Rudy prepares a personal market report on request, with the sold and current homes closest to yours.

Making an offer

Earnest money deposit: Shortly after the seller says yes, the buyer sends a deposit to escrow. It shows commitment, it is applied toward the purchase price at closing, and the contract spells out when the buyer could lose it.
Contingency: A condition in the purchase contract that lets the buyer cancel and keep the deposit if it is not met, most often for the home inspection, the appraisal, the loan approval and the review of disclosures. The standard California contract commonly gives about 17 days for these.

Once you are under contract

Escrow: The neutral middle ground of a sale: an escrow company takes custody of the money and the documents, follows the instructions both sides signed, and closes the transaction once every condition in the contract is met.
Appraisal: A licensed appraiser visits the home and compares it with recent nearby sales to reach an opinion of value for the lender. A low number does not end a deal, but it forces a conversation about price, cash or terms.
Transfer Disclosure Statement: In California a seller answers a standard questionnaire about the home’s condition, known defects, remodeling and permits. The buyer receives it early and can use it to decide what to inspect and what to ask.
Natural Hazard Disclosure: A report that says whether a property lies in a mapped hazard zone, such as a flood zone, a fire hazard severity zone, an earthquake fault zone or a seismic hazard zone. Sellers provide it to buyers.
Rate lock and points: A rate lock is a lender’s promise to hold an interest rate for a set number of days while the loan is processed. Discount points are prepaid interest: each point costs 1% of the loan and typically lowers the rate.
Local example: Freddie Mac’s weekly survey put the average 30-year fixed rate at 7.28% on Oct 1, 2026. Your rate depends on the lender, the loan and your finances.

Closing and owning

Closing costs: Expect a separate line of costs at closing, distinct from your down payment: charges for the loan, for title insurance and escrow, for recording the deed and for prepaying part of the year’s taxes and insurance. The Closing Disclosure shows the final numbers.
Base-year value (Proposition 13): California’s property tax is built on a purchase-price base. Buy a home and its taxable value resets to what you paid, then can rise by at most 2% a year, which is why long-time owners often pay less than new neighbors in identical homes.
Local example: For a typical home in the San Diego metro area (San Diego–Chula Vista–Carlsbad) at $930,785, the 1% base tax would be about $9,308 a year, or roughly $10,704 with an assumed 0.15% for voter-approved charges. Real bills vary by address and by any special taxes.
Supplemental tax bill: An extra property tax bill that California counties send after a purchase or new construction. It covers the difference between the old assessed value and the new one for the rest of the fiscal year, and it is separate from the regular bill.
PCOR and the homeowners’ exemption: The Preliminary Change of Ownership Report is filed when a property is transferred, so the county assessor can reassess it. The homeowners’ exemption is a $7,000 reduction in taxable value for a home the owner lives in, claimed once with the assessor.

A note on what this is

These definitions describe general California practice in plain English. Contracts, forms and rules change and differ by case, so confirm details with your lender, the escrow officer, the county and a licensed advisor. Rudy Flores is a licensed real estate agent (CalDRE #02257808) with Coldwell Banker West, not an attorney or tax professional. Market numbers come from Zillow Research and Freddie Mac and are dated on the page.

Keep exploring

Closing cost estimator — Estimate the cash to close.
The first-time buyer guide — The whole process, step by step.
Property tax for first-time buyers — Budget it before you bid.
Closing cost estimator — Cash to close.

Talk to a lender. Rates, loan programs and approvals come from lenders, not from websites or real estate agents. Talk to your own mortgage broker, or use our preferred lender, Point Mortgage Corporation (NMLS #231073), at (619) 475-4095. You are always free to choose any lender you like, and you can verify any lender’s license at nmlsconsumeraccess.org.

Sources

General information for orientation, not legal, tax, financial or appraisal advice. Details change; confirm anything that matters with the official source, your lender and your agent.