Run the numbers before you fall in love with a house.

The schedule that spreads your loan over its full term. Early payments are mostly interest; later ones are mostly principal.

The yearly cost of the loan including lender fees, not just the interest rate. Useful for comparing two offers fairly.

A licensed appraiser’s opinion of what the home is worth. Lenders require one, and they will not lend more than the appraised value supports.

Fees due at closing beyond the down payment: lender charges, title work, recording fees, prepaid taxes and insurance. Commonly 2–5% of the price.

The five-page final statement of your loan terms and costs. By law you get it at least three business days before closing — read it against your Loan Estimate.

A condition in the contract that lets you walk away and keep your deposit, such as financing, appraisal, or inspection contingencies.

A loan not insured by a government agency. Usually needs stronger credit than FHA but can drop mortgage insurance once you reach 20% equity.

Your monthly debt payments divided by gross monthly income. Most loan programs want this at or under roughly 43%.

The cash you put in up front. It is not the same as closing costs, and assistance programs may cover part of it.

A good-faith deposit submitted with your offer. It is credited toward your costs at closing, and is at risk if you break the contract outside a contingency.

The share of the home you actually own: the current value minus what you still owe.

Two meanings. Before closing, a neutral third party holds funds and documents. After closing, an escrow account collects part of your taxes and insurance each month.

A loan insured by the Federal Housing Administration. Accepts lower credit scores and down payments from 3.5%, in exchange for mortgage insurance premiums.

A fixed rate never changes. An adjustable rate (ARM) starts lower, then resets on a schedule — your payment can rise.

The body that governs a community or condo and charges dues. Lenders count those dues in your monthly obligation, so they affect how much you qualify for.

Required by lenders. In Florida, windstorm and flood coverage are often separate policies, which is why quotes vary so widely.

A standard three-page form your lender must send within three business days of your application. It is the document to use when comparing lenders.

The loan amount as a percentage of the home’s value. Above 80% LTV, expect to pay mortgage insurance.

The rate used to calculate Florida property taxes, expressed per $1,000 of assessed value. It differs by city within Miami-Dade.

Protects the lender, not you, when your down payment is under 20%. Conventional PMI can be removed as you build equity; FHA’s MIP usually cannot.

What the lender charges to process the loan, often about 0.5–1% of the loan amount.

Optional up-front fees paid to lower your rate. One point costs 1% of the loan. Worth it only if you keep the loan long enough to break even.

A pre-qualification is an informal estimate. A pre-approval means a lender has verified your documents — that is what sellers take seriously.

The amount you borrowed, separate from the interest charged on it.

A one-off charge a community levies for major repairs. Ask whether any are pending before you buy into a condo.

A lender’s commitment to hold your rate for a set period while you close, typically 30–60 days.

Costs the seller agrees to pay on your behalf. Each loan program caps how much is allowed.

Protects against ownership claims or liens that surface after you buy. The lender’s policy covers them; an owner’s policy covers you.

The lender’s review of your income, assets, credit, and the property before final approval. It is where most last-minute requests come from.

A loan guaranteed by the Department of Veterans Affairs for eligible service members and surviving spouses. Often no down payment and no monthly mortgage insurance.