Mortgage words, translated.

The amount you actually borrowed. Every payment chips away at it — slowly at first, faster later.

What the lender charges for lending you the principal, expressed as a yearly rate. Early payments are mostly interest; that flips over time.

Principal, Interest, Taxes, Insurance — the four pieces of a typical monthly payment. When Scott says "your payment," he means all four, not just the loan part.

A holding account your lender uses to pay your property taxes and homeowners insurance for you. You pay a slice each month so the big bills are covered when due.

Insurance on a conventional loan when you put less than 20% down. It protects the lender, you pay it monthly, and it can be removed once you reach 20% equity.

The fees to finalize the loan and transfer the home — lender fees, title, recording, prepaid taxes and insurance. Typically roughly 2–4% of the price.

Down payment + closing costs − credits and assistance. The number you actually wire. Scott gives it to you on day one and updates it with every offer.

Money the seller agrees to contribute toward your closing costs. Lowers your cash to close; program limits apply.

Prepaid interest. Paying points lowers your rate; it is a trade worth running the break-even on, not a default.

Annual Percentage Rate — your interest rate plus certain loan costs, expressed as a yearly figure so loans can be compared apples to apples. Always shown on your Loan Estimate.

A special taxing district common in newer Colorado neighborhoods — Monument, Castle Rock, Falcon, the Denver south metro — that adds its own mill levy to your property tax bill to pay for roads, water and parks. It can change a payment by hundreds a month between two similar homes. Scott checks it on every address.

A lender has reviewed your income, assets and credit and issued a letter saying how much you can borrow. Stronger than a pre-qualification, which is just a conversation.

Your monthly debt payments divided by your gross monthly income. Lenders use it to judge how comfortably a payment fits. Student loans and car payments count; groceries do not.

A number summarizing your borrowing history. It affects which programs you qualify for and your pricing. Not perfect? FHA exists for a reason.

Money left in the bank after closing. Underwriters like to see it, and so will you the first time something in the house breaks.

Down payment money given by a family member. Allowed on every major program with a gift letter and a paper trail.

Items underwriting asks for after the initial review — an updated statement, a letter explaining a deposit. Normal. Fast responses keep the file moving.

The VA document that proves your entitlement for a VA loan. Scott pulls it electronically in minutes as part of pre-approval — you do not need to track it down.

A standardized three-page form showing your rate, payment and closing costs, delivered within three business days of applying. Use it to compare lenders.

Freezing your interest rate for a set period while your loan closes. Scott explains lock periods and when to lock in plain English.

A licensed appraiser's opinion of the home's value, ordered by the lender. The loan is based on the lower of price or appraised value.

When the appraisal comes in below your offer price. Covered with cash, a renegotiated price, or a contract clause that limits your exposure.

The review where the lender verifies everything in your file and approves the loan. Scott structures files the way underwriting reads them to avoid surprises.

Underwriting has approved everything. The finish line is in sight; the Closing Disclosure follows.

The final, official version of your loan terms and costs, delivered at least three business days before closing. Compare it to your Loan Estimate.

A deposit you make with your offer to show you are serious. Credited back to you at closing.

A condition in the contract that lets you walk away without penalty if it is not met — financing, inspection and appraisal are the common ones.

A loan for homeowners 62+ that turns home equity into cash with no required monthly mortgage payment. You keep the title and keep paying taxes, insurance and upkeep; the loan is repaid when the last borrower leaves the home for good.

The FHA-insured reverse mortgage — the kind almost everyone means when they say "reverse mortgage." Insured, regulated, non-recourse, and counseling is required before you apply.

Using a reverse mortgage to buy a home. Buyers 62+ bring a larger down payment and have no required monthly mortgage payment afterward. One closing.

The feature that means you — and your heirs — never owe more than the home is worth when it is sold to repay a HECM. FHA insurance covers any shortfall.

The independent session every HECM borrower completes before applying. Required by law, about an hour, with a counselor who does not work for the lender.

The reverse mortgage version of underwriting: a check that you can keep up with property taxes, insurance and maintenance — the obligations that keep the loan in good standing.

A monthly reverse mortgage payment to you that continues for as long as you live in the home. A "term" payment is the same idea for a set number of years.