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The words, translated
Every term below gets the friend treatment — what it actually means and why you'd care. No email wall, no gate, no catch. Filter by category or just scroll.
Down payment money
The part of the price you pay up front. Not 20% — for many programs it's 3%, 3.5%, or $0. The rest is the loan.
Closing costs money
The fees to actually close — appraisal, title, recording, prepaid taxes and insurance. Usually 2%–3% of the price; sellers and lender credits often help.
Escrow account money
A holding account your lender uses to pay your property taxes and homeowners insurance on time. Part of your monthly payment goes there. That's all it is.
PMI (private mortgage insurance) money
Insurance that protects the lender when you put down less than 20% on a conventional loan. It's a monthly line item, and it can be removed once you reach 20% equity.
PITI money
Principal, Interest, Taxes, Insurance — the four parts of a typical monthly mortgage payment. Add PMI and HOA if they apply.
Points money
An optional up-front fee to buy a lower rate. One point = 1% of the loan. Worth it only if you'll keep the loan long enough to earn it back — Tanner does that math with you.
Rate vs. APR money
The rate is what you pay on the loan balance. APR folds in certain fees to show a fuller cost of borrowing. Compare APR to APR when you shop.
Pre-qualification vs. pre-approval qualifying
Pre-qualification is a quick estimate from what you tell us. Pre-approval means documents reviewed and credit pulled — it's the one agents take seriously.
DTI (debt-to-income ratio) qualifying
Your monthly debt payments divided by your gross monthly income. Programs each have a ceiling; it's one of the two or three numbers that decide what you qualify for.
Credit score qualifying
A three-digit summary of how you've handled credit. Different programs have different floors, and there are usually fast ways to nudge it up before you apply.
Gift funds qualifying
Money from family toward your down payment or closing costs. Allowed on most programs with a simple gift letter. Cam handles the paperwork.
Reserves qualifying
Money left in your accounts after closing. Some programs require a few months of payments in reserve; all of them like to see it.
Loan Estimate (LE) process
A standardized three-page form showing your rate, payment and closing costs. You get it within three business days of applying, and it's built for comparing lenders.
Rate lock process
Freezing your rate for a set period (often 30–60 days) so market moves don't change it while you close. Tanner tells you when locking makes sense.
Appraisal process
An independent opinion of what the house is worth, ordered by the lender. If it comes in at or above the price, you're good; if not, there are options.
Underwriting process
The lender's review of the whole file — income, assets, credit, property. It's the "is this loan sound?" step.
Conditions process
The short list of items underwriting needs before final approval. A pay stub, a letter of explanation, an updated statement. Cam clears them with you one by one.
Clear to close process
Underwriting is done and the loan is fully approved. The best text you'll get in the whole process.
Closing Disclosure (CD) process
The final version of your numbers, delivered at least three business days before closing so nothing is a surprise at the table.
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