Mortgage words, the friend version.

The cash you bring toward the purchase price. It is not 20% by default — 3%, 3.5% and even 0% programs exist. Bigger down payments lower your monthly payment and can remove mortgage insurance; smaller ones get you in the door sooner.

The one-time fees paid at closing: lender fees, title and settlement charges, appraisal, and “prepaids” like the first year of insurance and a few months of taxes. Commonly 2–4% of the price; seller credits and lender credits can offset them.

A holding account your lender keeps for property taxes and homeowners insurance. You pay 1/12th each month with your mortgage, and the lender pays the bills when they come due. That’s why your “real” payment is bigger than principal and interest alone.

Insurance that protects the lender when you put less than 20% down on a conventional loan. It adds to your monthly payment, but it cancels once you reach 20% equity — unlike FHA mortgage insurance, which usually lasts the life of the loan.

An upfront fee (one point = 1% of the loan amount) paid to lower your interest rate. Worth it if you’ll keep the loan long enough to recoup the cost; Kayla runs the break-even math so you can decide with real numbers.

Annual Percentage Rate — the interest rate plus most lender costs, expressed as a yearly rate. It’s the apples-to-apples number for comparing loans, which is why it must appear next to any advertised rate.

A lender’s commitment to hold your interest rate for a set period (often 30–60 days) while your loan closes. Once locked, rate moves in the market don’t change your loan.

A lender’s written statement that, based on your credit, income and assets, you’re approved for up to a certain loan amount — pending the property and final underwriting. It’s what makes your offer credible.

A lighter, earlier estimate based on what you tell the lender, without verified documents. Useful for a first conversation; not the same as pre-approval, and sellers know the difference.

Your monthly debt payments — including the new mortgage — divided by your gross monthly income. Lenders use it to size what you can afford; most programs top out somewhere around 43–50% depending on the rest of your file.

A three-digit summary of your credit history. Most conventional programs start around 620 and FHA can go lower; higher scores earn better pricing. Small, specific changes can move it faster than people expect.

The loan amount divided by the home’s value. 10% down = 90% LTV. It drives whether you pay mortgage insurance and what pricing you get.

Money left in the bank after closing, measured in months of mortgage payments. Not always required, but they strengthen a file — especially for jumbo loans or investment properties.

The lender’s formal review of your credit, income, assets and the property. An underwriter issues an approval with “conditions” — items to clear before closing. Kayla translates every one of them.

An independent opinion of the home’s value, ordered by the lender. If it comes in at or above the purchase price, you’re good; if not, there are options (negotiate, cover the gap, or walk) and Kayla walks you through them.

The underwriter’s to-do list — an updated pay stub, a letter explaining a deposit, proof insurance is in place. Clearing them quickly is the single biggest thing that keeps a closing on schedule.

Underwriting is finished and every condition is satisfied. The lender is ready to fund; all that’s left is scheduling closing and reviewing final numbers.

The final, five-page statement of your loan terms and closing costs, delivered at least three business days before closing so you can review it without pressure. Kayla goes through it with you line by line.

The legal record of who owns the property. A title company searches it for problems (liens, claims) and insures against them so you take ownership clean.