Resources

FAQs & Glossary

Find quick answers to common mortgage questions and learn the terminology used in home financing.

Frequently Asked Questions

We know mortgages can be confusing. Here are answers to some of the questions we hear most often. If you don’t see your question here, feel free to reach out — we’re happy to help.

What is the difference between pre‑qualification and pre‑approval?

Pre‑qualification is an estimate of how much you may be able to borrow based on information you provide. Pre‑approval is a more thorough process where the lender verifies your credit, income and assets. A pre‑approval carries more weight when you make offers on a home.

How much should I put down?

The ideal down payment varies based on the loan program and your financial goals. While 20% eliminates mortgage insurance, many programs allow down payments as low as 3% or 0% for VA and USDA loans. Talk with your lender to determine the best option for you.

What are closing costs?

Closing costs include lender fees, appraisal fees, title insurance, escrow fees, recording fees and prepaid items such as property taxes and homeowners insurance. They typically range from 2–5% of the loan amount.

At a Glance

Glossary of Mortgage Terms

  • Amortization: The process of paying down a loan in scheduled installments over a fixed period.
  • APR (Annual Percentage Rate): The cost of borrowing including the interest rate and certain fees, expressed as a yearly rate.
  • Debt‑to‑Income (DTI) Ratio: A percentage comparing your monthly debt payments to your gross monthly income.
  • Escrow: A third‑party account where funds are held to pay property taxes and insurance on your behalf.
  • LTV (Loan‑to‑Value) Ratio: The percentage of the loan amount compared to the appraised value or purchase price of the property.
  • Points: Fees paid to a lender at closing in exchange for a lower interest rate (one point equals 1% of the loan amount).
  • Principal: The amount borrowed or the outstanding balance on the loan, excluding interest.

Tools & Next Steps

Use the checklist on this page and reach out when you’re ready—we’ll map a clean path to “clear to close.”