Mortgages, without the mortgage-speak.
Most people only buy a handful of homes in a lifetime, so nobody expects you to walk in fluent in mortgage. This page covers the questions people are a little embarrassed to ask out loud. Read it at your own pace, then bring your questions to Theresa.
A mortgage, in three sentences
Mortgage vocabulary isn't difficult, it's just unfamiliar. Here's the whole idea before the details.
You borrow to buy
A mortgage is a loan used to buy a home, with the home itself securing the loan.
You repay over time
Each payment covers part of what you borrowed plus the cost of borrowing it, spread across the loan's term.
The structure matters
Programs, terms and rate types differ. The right one depends on your income, your timeline and your plans for the property.
The words lenders use, in plain English
The ones that come up in nearly every conversation Theresa has with a buyer or a homeowner.
Pre-qualification
An early look at your income, debts and credit so you know roughly what range you're shopping in. A starting point, not a commitment.
Pre-approval
Goes a step further than pre-qualification: your documentation is reviewed and verified. Theresa will tell you which one your situation calls for and when.
Principal & interest
Principal is the money you borrowed. Interest is what you pay for borrowing it. Early payments lean toward interest and shift over time.
Escrow
An account that collects a share of your property taxes and homeowners insurance each month, so the big bills don't land all at once.
Amortization
The schedule that spreads your loan across its full term, payment by payment.
Closing costs
The lender, title, appraisal and recording fees due at the end. Ask what yours look like early so they're never a surprise.
Points
An upfront fee paid to buy down your interest rate. Whether it makes sense depends on how long you plan to stay.
Rate vs. APR
The interest rate is the cost of borrowing. The APR folds certain lender fees into one annual figure, so it's usually higher. Comparing both gives a fairer picture.
Fixed vs. adjustable
A fixed rate stays the same for the life of the loan. An adjustable rate may change according to the loan's terms. More on ARMs
Loan-to-value (LTV)
The loan amount compared to the home's value. It shapes which programs fit and whether mortgage insurance applies.
Debt-to-income (DTI)
Your monthly debt payments measured against your monthly income. Underwriters look at it closely.
Equity
The part of your home's value you own outright: what it's worth minus what you still owe on it.
There's no single best mortgage
Only the one that fits your income, your timeline and your plans for the property. Each of these has its own page with the details.
- First homeWhere to start, from pre-qualification to closing day.→
- ConventionalFinancing that isn't government-backed.→
- FHAA government-backed option many first-time buyers look at first.→
- VAA loan benefit for eligible veterans and military families.→
- USDAA government-backed option for eligible properties and buyers.→
- RefinancingReplacing your current mortgage to change the term or structure, or to access equity.→
- Specialty loansJumbo, physician, adjustable-rate, bridge, HELOC and self-employed.→
- InvestorsDSCR, fix & flip and multi-unit financing for property you don't live in.→
The things worth thinking through
- What the property is for. Living in it, renting it, renovating it or holding it changes which loans fit.
- How long you plan to stay. It affects whether points, a refinance or an adjustable rate makes sense.
- Your income and debts. How they're documented and how they compare.
- Your credit and savings. Both shape the programs available to you.
- The full cost, not just the payment. Closing costs, taxes, insurance and the APR all belong in the picture.
Requirements vary by borrower, lender and loan program, so treat this as a starting point and talk your situation through with Theresa.
Bring these to your first conversation
Nothing here is too basic, and a good question early usually saves trouble later.
- Which loan programs might fit my situation, and why?
- Should I start with pre-qualification or pre-approval?
- What will my closing costs look like?
- How do the rate and the APR compare on each option?
- Is a fixed or adjustable rate worth considering for my timeline?
- What documents should I start gathering now?
Frequently asked
If your question isn't here, send it over. Theresa works with clients in Kansas, Missouri, Nebraska, Arkansas, Tennessee, Texas and Washington.
How much documentation should I expect to provide?
Typically income records, asset statements and identification, with other items depending on the program and your employment situation. Theresa gives you a specific list up front rather than making you guess.
How does the home loan process actually move?
It usually runs from a first conversation, to pre-qualification, to a full application, then processing and appraisal, underwriting, and finally closing. The Homebuyer's Guide walks through it step by step.
Does a refinance make sense for me?
It depends on your current loan, how long you plan to stay in the home, and what you're trying to accomplish. Bring your current loan details and she will run the comparison with you.
I'm not buying for another year. Is it too early to reach out?
No. Early conversations are often the most valuable, because there's still time to organize documents, address credit questions and plan for closing costs before you shop.
Ask the Huntress
That's exactly who this page is for. Bring your list of questions and Theresa will work through it with you, in plain language.
(913) 705-0049