Mortgage words, translated.

The cash you put in up front, as a percentage of the price. The internet says 20%; reality says as little as 0–3.5% depending on the loan. More down = smaller loan and payment, but 20% was never the entry fee.

The fees to make the purchase official — lender, title, appraisal, taxes, prepaid escrow. Plan on roughly 2–4% of the price, on top of your down payment. Sometimes sellers help pay them (ask Luke how).

A monthly cost on conventional loans with less than 20% down. It protects the lender, not you — and it goes away once you have enough equity. Often taking PMI now beats renting for years to save 20%.

An account your loan servicer uses to pay property taxes and insurance for you. A slice of every monthly payment goes in, the bills get paid out automatically. One less thing to remember.

Prepaid interest: you pay more at closing to get a lower rate for the life of the loan. Worth it if you'll keep the loan long enough to break even — Luke can run that math for your scenario.

A good-faith deposit (often 1–3% of price) you put down with your offer. It's not extra cost — it counts toward your down payment and closing costs at the end.

A lender's verified statement of what you can borrow, based on real documents — income, assets, credit. Stronger than a 'pre-qualification' (which is just a guess). This is what makes sellers take your offer seriously.

Your monthly debt payments divided by your gross monthly income. Lenders use it to size how much payment you can carry. Car loans, student loans, and cards count; groceries and Netflix don't.

The three-digit number lenders use to price risk. Conventional loans generally start around 620; higher scores get better pricing. It's a factor, not a verdict — and it's fixable.

Loan amount divided by home value. Put 10% down and your LTV is 90%. It drives PMI and pricing — lower LTV, better deal.

Money left over after closing — usually measured in months of payments. Not always required, but they strengthen a file. Retirement accounts often count.

The VA document proving you're eligible for a VA loan. Luke can pull it electronically in minutes — you don't have to chase it down yourself.

The formal review of your whole file — income, assets, credit, appraisal — against the loan program's rules. 'Conditions' (requests for more documents) are a normal part of it, not a bad sign.

An independent professional's opinion of the home's value, ordered by the lender. It protects you from dramatically overpaying and the lender from over-lending.

The best three words in the mortgage process: underwriting is fully done, your loan is approved, and closing gets scheduled. Champagne-adjacent.

Freezing your interest rate for a set window (often 30–60 days) so market moves can't change your deal while your loan closes. Luke tells you when locking makes sense.

Title is the legal ownership record; title insurance protects against problems in it (old liens, clerical errors, surprise heirs). A one-time cost at closing for lifetime protection.

The final, official statement of your numbers — rate, payment, cash to close — delivered at least three business days before closing so you can review with zero pressure.