Mortgage jargon, translated

The cash you put in up front, as a percentage of the price. Contrary to legend, it can be as low as 3% (conventional), 3.5% (FHA), or $0 (VA/USDA for eligible buyers).

The fees to make the purchase official — lender, title, appraisal, prepaid taxes and insurance. Typically 2–3% of the loan. Sometimes sellers or lenders can cover part of them.

A monthly cost on conventional loans with less than 20% down. It protects the lender, not you — and it drops off as you build equity. Not a reason to wait years saving 20%.

A neutral holding account. During purchase, it holds your earnest money; after closing, your servicer uses one to pay your property taxes and insurance from your monthly payment.

Annual Percentage Rate — your interest rate plus certain loan costs, expressed as a yearly rate so loans can be compared apples to apples. It’s why APR is always a bit higher than the rate itself.

Optional upfront interest. One point = 1% of the loan, paid at closing to lower your rate. Sometimes worth it, sometimes not — it’s a break-even math problem, and Dominick will show you the math.

A good-faith deposit (often 1–2% of price) that shows a seller you’re serious. It’s held in escrow and applies toward your down payment at closing.

A lender’s verified statement of what you can borrow, based on actual documents — income, assets, credit. This is the one sellers take seriously.

A lighter, estimate-only version of a pre-approval, based on stated (unverified) info. Fine for early planning; not enough for offers in a competitive market.

Your monthly debt payments divided by gross monthly income. It’s the main math behind "how much house can I afford" — most programs like to see it under roughly 43–50%.

The three-digit number lenders use to price risk. Many programs work from the low 600s. Small changes (utilization, old collections) can move it meaningfully in months, not years.

Money left over after closing — measured in months of payments. Some programs (especially jumbo) require them; all underwriters like to see them.

Down payment money given by family. Totally allowed on most programs — there’s just a short paper trail (a gift letter) to document it properly.

The formal review of your entire file against program guidelines. Underwriters ask for "conditions" (extra documents); that’s normal, not a bad sign.

An independent professional’s opinion of the home’s value, ordered by the lender. It protects you from overpaying and the lender from overlending.

Freezing your interest rate for a set window (usually 30–60 days) so market moves can’t change your deal while you close.

Underwriting’s final sign-off — every condition satisfied. The best three words in the process. Closing is scheduled from here.

Title is the legal right to the property; title insurance protects you and the lender if past ownership problems surface. It’s a one-time cost at closing.

The final, official statement of your loan terms and cash to close, delivered at least 3 business days before closing so you can review it calmly.

The standardized early disclosure of your loan’s terms and estimated costs, delivered within 3 business days of applying — designed so you can compare lenders line by line.