Mortgage jargon, translated.

The cash you put toward the purchase up front. Despite the folklore, it can be as low as 0–3.5% depending on the program — 20% is optional, not required.

The fees to actually complete the transaction — lender, title, appraisal, prepaid taxes and insurance. Budget roughly 2–3% of the purchase price; sometimes sellers or lender credits cover part of it.

A monthly fee on conventional loans with less than 20% down. It protects the lender, not you — but it's also the thing that lets you buy years sooner. It drops off as your equity grows.

A holding account bundled into your monthly payment. Your servicer collects a bit each month and pays your property taxes and homeowners insurance for you when the bills come due.

Optional up-front interest you pay at closing to lower your rate. One point = 1% of the loan amount. Sometimes worth it, sometimes not — it's a break-even math problem Joe runs with you.

A good-faith deposit (often 1–2% of the price) you put down with your offer. It gets credited back to you at closing — it's not an extra cost, it's an early piece of your down payment.

A lender's verified statement of what you can borrow, based on your actual documents and credit. Stronger than a pre-qualification, and essentially required for offers in competitive markets.

Your monthly debt payments divided by your gross monthly income. Programs generally like this under ~43–50%. It, not your salary alone, is what really sets your budget.

The three-digit number lenders use to price risk. FHA reaches to 580; conventional generally starts around 620. Higher scores mean better pricing — and there are usually fast ways to improve yours.

Your loan amount divided by the home's value. 90% LTV = 10% down. It drives PMI, pricing, and refinance eligibility.

Money left over after closing — measured in months of mortgage payments. Not always required, but they strengthen a file, especially for self-employed buyers.

Down payment money given (not lent) to you by family. Totally allowed on most programs — there's just a short paper trail, and Joe walks your family through it.

An agreement freezing your interest rate for a set window (usually 30–60 days) while your loan closes. Locking is about certainty, not gambling on the market.

An independent professional's opinion of the home's value, ordered during processing. It protects you from overpaying and the lender from over-lending.

The formal review where your file is checked against program guidelines. "Conditions" are just the underwriter's follow-up requests — normal, expected, and usually easy.

The best three words in the process: underwriting is done, your loan is approved, and closing gets scheduled.

The final, binding statement of your loan terms and cash to close. You get it at least three business days before signing — by law — so there are no table surprises.

Annual Percentage Rate — your interest rate plus certain fees, expressed as one comparable number. It's the honest way to compare two loan offers side by side.