Every mortgage word, un-jargoned.

A lender’s written estimate of how much you can borrow, based on a real review of your income, assets, and credit. It defines your budget and makes your offer credible to sellers.

The four parts of a mortgage payment: Principal, Interest, Taxes, and Insurance. When people ask "what’s my payment," this is the number they mean.

A neutral holding account. Before closing it holds your earnest money; after closing it collects a slice of your taxes and insurance each month so the big bills are covered when due.

Private Mortgage Insurance. On conventional loans with less than 20% down, a small monthly cost that protects the lender. It can be removed once you reach 20% equity — it is not permanent.

The share of your monthly income that goes to debt payments, including the new mortgage. Lenders use it to gauge comfortable affordability. Lower is roomier.

A good-faith deposit you put down with an offer to show you’re serious. It’s held in escrow and applied to your down payment or closing costs at closing.

The cash you put toward the purchase up front. It can be as low as 0–5% depending on the loan — the "20%" figure is a myth for most first-time buyers.

One-time fees to finalize the loan — things like appraisal, title, and lender charges. Often 2–5% of the price, and sometimes offset by seller credits or assistance programs.

An independent professional’s opinion of the home’s value, ordered by the lender to confirm the price is supported. Protects you from overpaying and the lender from over-lending.

The lender’s verification step: confirming your income, assets, credit, and the property all check out before final approval. Where "conditions" come from.

Securing a specific interest rate for a set period so it can’t move against you while your loan is processed. Steven advises when to lock.

A fixed rate stays the same for the life of the loan. An adjustable rate (ARM) can change after an initial fixed period — sometimes lower to start, but with future variability.

A mortgage not backed by a government agency, following Fannie Mae/Freddie Mac guidelines. Flexible, cancellable mortgage insurance, and down payments as low as 3%.

A government-backed loan built for accessibility: 3.5% down and friendlier credit requirements. A common first-time-buyer door.

A condition in your purchase offer that must be met to move forward — like a satisfactory inspection or appraisal. Protects you if something doesn’t check out.

The green light. Underwriting has signed off and you’re cleared to schedule closing and sign. The last milestone before keys.

Optional upfront fees paid to lower your interest rate (one point = 1% of the loan). Whether they’re worth it depends on how long you’ll keep the loan.

How your loan balance is paid down over time. Early payments are mostly interest; later ones mostly principal — which is why extra early payments help so much.