Every term you'll encounter in the mortgage process — explained in plain English.
The process of paying off a loan through regular payments. Early payments are mostly interest; later payments are mostly principal.
The true yearly cost of a loan, including interest rate plus lender fees. Always compare APRs when shopping lenders.
An independent evaluation of a property's market value, required by lenders. Typically costs $400–$600.
Fees paid at closing, typically 2–5% of the loan amount. Includes lender fees, title, appraisal, and prepaid items.
A mortgage not backed by the government. Requires higher credit scores but offers more flexibility in loan amounts and property types.
Your total monthly debt payments divided by gross monthly income. Most loans require under 43–50%.
A deposit made with your offer to show the seller you're serious. Typically 1–3% of purchase price. Applied to your down payment at closing.
A neutral third party that holds funds during a transaction. Also the account your lender maintains to pay property taxes and insurance.
A government-backed mortgage insured by the FHA. Allows lower credit scores (580+) and smaller down payments (3.5%).
A loan where the interest rate stays the same for the entire term. Your principal and interest payment never changes.
A credit check that briefly affects your score. Multiple mortgage inquiries within 45 days typically count as one.
A standardized 3-page document lenders must provide within 3 business days of your application. Use it to compare offers.
Your loan amount divided by the home's appraised value. 80% LTV or lower avoids PMI.
Insurance required on conventional loans when you put less than 20% down. Cancels automatically at 20% equity.
A full review of your income, assets, and credit that results in a conditional commitment to lend. Sellers take this seriously.
An agreement between you and the lender to hold a specific interest rate for a set period, protecting you from market movement.
The process a lender uses to evaluate the risk of making a loan. Involves verifying income, assets, credit, and property value.
A mortgage benefit for veterans and active-duty service members. Features $0 down, no PMI, and competitive rates.
If rates drop, so could your payment. We monitor the market and tell you when to act.
Wholesale pricing passed directly to you — better than any single bank can offer.
Most buyers qualify for $5,000–$15,000+ in assistance. We find every program and stack them.