Every term, translated

The cash you put toward the purchase up front. The famous "20%" is a myth as a requirement — programs go as low as 0–3.5% down. What 20% actually does is eliminate mortgage insurance.

The fees to complete the transaction — lender, title, appraisal, taxes, prepaid insurance. Budget roughly 2–4% of the price, and know that sellers can sometimes contribute toward them in negotiation.

A holding account managed by your loan servicer. A slice of each payment lands there, and the servicer pays your property taxes and homeowners insurance from it when the bills come due. You pre-fund it a bit at closing.

Insurance on conventional loans with under 20% down. It protects the lender, but it's the tool that makes low-down-payment buying possible. It cancels at 20% equity and auto-terminates at 22% — it is not forever.

Optional up-front interest: pay more at closing, get a lower rate for the life of the loan. Worth it only if you'll keep the loan long enough to break even — a math problem an advisor should run with you, not a default.

A good-faith deposit (often ~1% of price) submitted with your offer to show you're serious. It's not an extra fee — it applies toward your down payment and closing costs at the end.

A lender's written statement that you qualify for a loan amount, based on reviewed credit and documentation. This is what listing agents want to see behind an offer. Stronger than a pre-qualification, which is more of an estimate.

Your monthly debt payments divided by gross monthly income. It's the single biggest lever in qualifying. Different programs allow different DTIs — which is why "I got denied once" rarely means "I can't buy."

The three-digit summary lenders use to price risk. Conventional loans generally start around 620; FHA guidelines can go lower. Score bands change pricing, so small improvements can be worth real money.

Loan amount divided by home value, as a percentage. 95% LTV means 5% down. LTV drives mortgage insurance and pricing — as it drops, your options improve.

Money left after closing — measured in months of housing payments. Not always required, but reserves strengthen a file and, more importantly, they're good advice regardless of what underwriting demands.

Down payment money given by family (and in some programs, others). Completely allowed with a simple documentation trail — a gift letter and a paper path. Huge for first-time buyers.

The verification phase: a professional confirms your income, assets, credit, and the property all meet program guidelines. Conditions (requests for more documents) are normal, not a red flag.

An independent professional's opinion of the home's value, ordered by the lender. It protects you from dramatically overpaying and the lender from over-lending. Comes back during the contract period.

Freezing your interest rate for a set window (often 30–60 days) so market moves can't change your deal while you close. When to lock is a judgment call — one you make with your advisor, not alone.

Underwriting's final sign-off: every condition met, loan fully approved. The best three words in the process. Closing is scheduled from here.

The final, official statement of your loan terms and cash to close, delivered at least three business days before closing. You review it with your Loan Officer — if the process was run right, it contains zero surprises.

Title is the legal ownership of the property; title insurance protects against past claims and defects (liens, disputes, errors). One-time cost at closing, quiet peace of mind forever.