The lingo, translated

The cash you contribute toward the purchase price up front. Despite the famous myth, it can be as low as 3% on conventional loans, 3.5% on FHA, and $0 on VA and USDA — 20% is optional, not required.

The fees to complete the transaction — lender fees, title, appraisal, prepaid taxes and insurance. Typically 2–3% of the loan amount, and sometimes negotiable with the seller as credits.

A monthly premium on conventional loans with less than 20% down. It protects the lender, not you — but it's what makes low-down-payment buying possible, and it can be removed at 20% equity.

A holding account your lender manages: a slice of each monthly payment goes in, and your property taxes and homeowners insurance get paid out of it automatically. One less bill to remember.

Optional up-front fees paid to lower your interest rate. One point = 1% of the loan amount. Worth it if you'll keep the loan long enough to break even — math Rob will happily run with you.

A good-faith deposit (often 1–3% of the price) submitted with your offer to show you're serious. It's credited back to you at closing — it's not an extra cost.

Principal, Interest, Taxes, Insurance — the four ingredients of your real monthly payment. Any calculator that only shows principal and interest is telling you half the story.

A lender's written statement of how much you can borrow, based on verified income, assets, and credit. It's the document that makes sellers take your offer seriously — and it's free.

Your monthly debt payments divided by gross monthly income. Lenders use it to judge affordability. Most programs like to see total DTI under roughly 43–50%, depending on the loan.

A three-digit summary of your credit history. Conventional loans generally start around 620; FHA can go lower. Higher scores earn better pricing — and small improvements can matter a lot.

Your loan amount as a percentage of the home's value. Put 5% down and your LTV is 95%. It drives PMI requirements and pricing.

Down payment money given (not lent) by family. Completely allowed on most programs with a simple gift letter documenting it — a very common way first-time buyers close the gap.

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

The lender's formal review of your complete file against program guidelines. Underwriters may issue "conditions" — follow-up requests — which are a normal part of nearly every loan.

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

Freezing your interest rate for a set window (often 30–60 days) so market moves can't change your deal while your loan closes. Timing it is a conversation, not a guess.

The underwriter's final sign-off — every condition satisfied, nothing left but scheduling the closing. The best milestone in the whole process.

The final, official statement of your loan terms and costs, delivered at least three business days before closing so you can review everything without pressure.