Amorization
Repayment of loan principal over time with scheduled payments that consist of both principal and interest. The loan balance declines by the amount of the principal in the scheduled payment.

Annual Percentage Rate (APR)
The APR shows the costs of your mortgage loan as a yearly rate. The APR includes up-front fees (such as points) as well as interest and is intended to show you the true cost of your loan. When comparing one loan to another, be sure to compare APR’s to get a true picture of what each one will cost you.

Closing Costs
The cost of getting a mortgage in addition to the down payment. Usually 3-6% of the total loan amount.

Credit Bureau
An agency that collects statistics on individual payment records on loans, credit cards and other debts.

Debt-to-Income (DTI) Ration
The percentage of gross monthly income that goes toward paying all monthly debts, such as mortgage loans, car loans, student loans, credit cards, etc.

Equity
Equity is the portion of the property that you actually own through your payments, versus the portion that you still owe the mortgage lender. The longer you stay in your house, the more equity you will have.

Escrow
An account set up on your behalf in which a portion of your monthly payment is held to pay property taxes and insurance.

Gross Income
Amount earned before taxes or types of payroll deductions. Gross income includes overtime, commissions, dividends and any other sources for which a steady history can be shown.

Loan-to-value (LTV) Ratio
The ratio of a loan to the value of the asset purchased. If you have a higher down payment, you would have a lower LTV ratio. This factors into whether or not a lender will require someone to get mortgage insurance.

Points
Percentage points of the loan amount. Often in order to get a lower interest rate, lenders will allow borrowers to lower the rate by paying points upfront.

Pre-qualification
While not an approval, this gives borrowers an estimate of how much money they could borrow to purchase a home.

Pre-approval
A commitment from the Lender to make a loan to a specified borrower prior to identification of the  specific property.

Appraiser
An individual who is licensed to estimate the worth (fair market value) of the property you are purchasing.

Closing or Settlement Agent
The party who conducts the closing meeting. This role may be filled by an attorney, title company, or 
real estate agent depending upon the state where the property is located.

Loan Officer
A Loan Officer represents one lending institution and their loan programs. They help you choose the best mortgage loan based upon your situation and will help you complete the loan application. 

Loan Processor
A Loan Processor is one who gathers, administers, and processes your loan application before it gets the approval of a loan underwriter. This individual is essential to getting your mortgage loan request to the final close.

Loan Servicer 
The entity that collects mortgage payments (it may or may not be the lender) and pays taxes and insurance and mortgage insurance, if required, on your behalf.

Mortgage Insurer 
By compensating the lender for losses should a borrower be unable to make payments, Mortgage Insurance allows a borrower to get into a home without having to come up with a 20% down payment. Many Mortgage Insurers, such as Enact Mortgage Insurance, can assist borrowers if they become behind in their mortgage payments.

Mortgage Lender
A financial institution that issues loans. Unlike brokers, lenders control the whole process, from underwriting to funding.

Property Inspector
An individual certified to conduct an examination of the home. An inspector will look for issues that may affect the value of the property and can assess the condition of a property’s roof, foundation, heating and cooling systems, plumbing, electrical work, water and sewage, and some safety issues.

Real Estate Agent
A real estate agent is a person who acts as an intermediary between sellers and buyers of real estate/real property and attempts to find sellers who wish to sell and buyers who wish to buy. They can often provide helpful and specific community information such as shopping, transportation, and schools.

Real Estate Broker
A broker is a licensed real estate professional who represents the sellers or buyers of a property, and can typically help determine the market values of properties. While a broker may work independently and has the ability to manage their own firm, an agent usually works under a licensed broker to represent clients.

Underwriter
A worker who evaluates and determines the risk for potential clients when applying for a mortgage. They  may decide whether and under what terms to provide the mortgage.