What is a contract?
The Bankrate.com financial term of the day is: "Contract"
A contract is a real estate deal put down on paper. It's a legal document laying out: all the offers and counteroffers; a description of the property and what's included in the sale; the agreed-to sale price; closing costs; and the closing date. When a buyer and seller come to an agreement and sign the document, the property is said to be "under contract."
The completion of a home sale needs much more than just a handshake. The contract makes the transaction legal and binding, as they say.
To shop for the perfect home loan, visit the Mortgage section at Bankrate.com.