Mortgage terms, translated into human

The cash you put in up front. Despite the myth, it can be as low as 3% conventional, 3.5% FHA — or $0 on VA and USDA loans. It is not the same thing as closing costs.

The fees to complete the transaction — lender, title, appraisal, prepaid taxes and insurance. Often 2–3% of the purchase price, and sometimes negotiable with the seller.

A monthly cost on conventional loans with less than 20% down. The good news: it can typically be removed at 20% equity, and it terminates automatically at 22%.

A holding account your servicer uses to pay your property taxes and homeowners insurance. Part of your monthly payment goes in; the bills get paid out automatically.

Optional upfront fees that buy a lower rate. One point = 1% of the loan amount. Sometimes worth it, sometimes not — it depends how long you’ll keep the loan.

A good-faith deposit when your offer is accepted (often 1–2% in Colorado). It counts toward your cash to close — it’s not an extra fee.

The Colorado Housing and Finance Authority — the state agency whose programs help eligible Colorado buyers with down payment and closing cost assistance. Income and purchase-price limits apply.

Your monthly debt payments divided by your gross monthly income. One of the biggest levers in qualifying — and one Peter can often improve with smart structuring.

The three-digit number lenders use to price risk. Conventional generally starts around 620, FHA around 580 — and pricing improves as scores rise.

A quick, informal estimate based on stated numbers. Useful for a ballpark — but it’s not verified and carries little weight with listing agents.

The real one: verified income, assets, and credit, producing a letter sellers take seriously. In a competitive Front Range market, this is your ticket to play.

The VA document proving your entitlement to a VA loan. Peter can typically pull it for you in minutes with your service details.

Savings left over after closing, measured in months of payments. Not always required, but they strengthen a file — especially for jumbo loans.

Freezing your interest rate for a set window (often 30–60 days) so market moves can’t change your deal while your loan closes.

An independent opinion of the home’s value, ordered during processing. It protects you from overpaying and the lender from overlending.

The formal review of your entire file against program guidelines. Conditions ("please send X") are normal — not a bad sign.

Underwriting’s final sign-off. Once you hear these three words, the only thing left is scheduling your closing and wiring your funds.

Title is the legal ownership of the property; title insurance protects you and the lender if an ownership dispute or lien surfaces later.