A

Adjustable-Rate Mortgage (ARM): Loan with lower starting rate that adjusts with the market.

Amortization: 30,000-foot view of your mortgage payment over years.

Amortization Schedule: Breakdown of your principal and interest payments over time.

Annual Percentage Rate (APR): Most realistic interest rate that includes fees and charges.

Appraisal: Property inspection by certified appraiser to determine property value

Assessed Value: Specific property value used for tax purposes, not mortgage.

Assets: Owned items with monetary value including cash and accounts, too.

Assumption: When a buyer takes on a seller's existing mortgage.

B

Back-End DTI: All monthly debts over monthly income

Balloon Mortgage: Low upfront payments, lump-sum balance due later.

Bankruptcy: Legal inability to repay debts, affecting loan eligibility.

Buyer’s Agent: Represents home buyer in a real estate transaction.

C

Closing Day: Date for signing final mortgage documents and paying closing costs.

Closing Agent: Coordinates closing documents and funds distribution.

Closing Costs: Additional expenses beyond the home purchase price due at closing.

Closing Disclosure: Final loan details provided by lender three days before closing.

Commitment Letter: Lender's loan terms confirmation.

Concession: Offers or discounts during negotiations, like seller-paid repairs.

Condominium: Owned unit in a multi-unit building or property.

Contingency: Contract exit option if conditions aren't met.

Counter-Offer: Revised offer in ongoing negotiation.

Credit Bureau: Collects credit data, generates credit reports and scores.

Credit History: Record of debt management and payment consistency.

Credit Report: Overview of credit use and history.

Credit Score: Numeric measure of creditworthiness based on history of credit use.

D

Debt: Owed money or financial obligation.

Debt-to-Income Ratio (DTI): Income ratio covering monthly debts.

Deed: Legal document transferring property ownership.

Down Payment: Initial money due when buying a house, not borrowed.

E

Earnest Money Deposit: Money set aside when offer is made, often non-refundable.

Escrow: Account that holds funds for later distribution. (Insurance, taxes, etc.)

F

Front End DTI/Housing Ratio: Primary Housing Expense over monthly income

FHA Loan: Mortgage backed by Federal Housing Administration. Great for first timers.

Fixed Income: Salary or non-fluctuating income. Easier to qualify with.

Fixed-Rate Mortgage: Very common loan with interest rate that doesn’t change over time.

G

Gift Letter: Official document showing money gifted to you for down payment.

Gross Monthly Income: Total monthly pay before deductions or taxes including bonuses, commissions.

H

Home Inspection: Property condition check by professional inspector. Highly recommended, not required.

Homeowner's Insurance: Monetary protection for home damages, liability, personal property.

I

Inquiry: Credit application submission that will show on a credit report.

Interest: Money paid for borrowing money, usually expressed as a percentage.

L

Liabilities: Financial obligations or debts. Car loans, credit cards, alimony, etc.

Listing: Description published to sell a property.

Loan Estimate: Lender-provided mortgage cost overview. Multiple given through mortgage process.

Loan Origination Fees: Lender charges for processing mortgage application.

Lock-In Rate: Guaranteed interest rate for a specific period of time.