APRThe annual percentage rate reflects your interest rate plus certain costs, expressed as a yearly rate.
AppraisalA professional estimate of a home’s market value, ordered by the lender.
Closing CostsFees paid at closing, such as lender, title, appraisal, and recording charges.
Debt-to-Income RatioYour monthly debt payments divided by gross monthly income, used in qualification.
EscrowAn account that holds funds for property taxes and insurance, paid as part of your monthly payment.
FHAA loan insured by the Federal Housing Administration, known for flexible qualification.
Jumbo LoanFinancing that exceeds conforming loan limits set by the FHFA.
Loan EstimateA standardized form outlining your estimated loan terms and costs.
LTVLoan-to-value — the loan amount divided by the property value.
Mortgage InsuranceCoverage that protects the lender; often required with lower down payments.
PreapprovalA lender’s assessment of how much you may be able to borrow.
Rate LockAn agreement to hold a specific interest rate for a set period.
UnderwritingThe lender’s process of verifying your information and approving the loan.