Mortgage words, translated

The cash you put toward the price up front. It can be as low as 0–3.5% depending on the program. The rest is the loan.

Fees to get the loan done — lender, title, appraisal, prepaid taxes and insurance. Typically 2–4% of the price in Tennessee. Sellers, family gifts and THDA can all help cover them.

Two meanings. During the deal, escrow is where your earnest money sits. After closing, your escrow account is where part of each payment goes so the lender can pay your taxes and insurance for you.

Insurance that protects the lender when you put less than 20% down on a conventional loan. It’s added to your payment and goes away once you reach 20% equity.

Annual percentage rate — your interest rate plus most lender fees, expressed as a yearly rate. Useful for comparing two loan offers apples-to-apples.

Fees paid up front to buy a lower rate. One point equals 1% of the loan. Sometimes worth it, often not — Autumn runs the break-even math for you.

A good-faith deposit (often 1% in East Tennessee) you put down when your offer is accepted. It’s credited back to you at closing.

A lender has reviewed your credit, income and assets and says how much you can borrow. Much stronger than a “pre-qualification,” which is just a conversation.

Your monthly debt payments divided by your gross monthly income. Lenders use it to decide how much payment you can carry. Lower is better; many programs allow up to the mid-40s.

A three-digit summary of your credit history. Mortgage lenders use the middle of your three scores. It affects pricing more than it affects approval.

Your loan amount divided by the home’s value. 95% LTV means 5% down. Lower LTV usually means better pricing and no mortgage insurance.

Money from a family member for your down payment or closing costs. Allowed on most programs with a simple gift letter — no repayment expected.

Money left in the bank after closing. Not always required, but a couple of months of payments makes a file stronger and makes you sleep better.

Freezing your interest rate for a set period (usually 30–60 days) so market swings don’t change your payment before closing.

An independent valuation of the house ordered by the lender. If it comes in below the price, you and the seller renegotiate — Autumn has handled hundreds.

The lender’s final review of your file against program guidelines. Underwriters issue “conditions” — follow-up requests — before signing off.

Items the underwriter needs before approving: an updated pay stub, an explanation letter, a document the title company forgot. Normal. Not a rejection.

Underwriting is finished and the loan is approved. The only thing left is signing. Best text you’ll get all month.

The final five-page summary of your loan terms and costs. By law you get it at least three business days before closing so you can review every number.

Protects you (and the lender) if someone later claims ownership of the property or an old lien surfaces. A one-time cost at closing.