The words, in plain English.

The part of the price you pay up front. It is not 20% by default — 3% (conventional), 3.5% (FHA) and 0% (VA/USDA) are all real, common starting points.

Fees to finalize the loan and transfer the home: appraisal, title, recording, lender fees, prepaid taxes and insurance. Plan on roughly 2–3% of the price; some can be covered by the seller or a credit.

A deposit you make when your offer is accepted, showing you’re serious. It’s credited back to you at closing — it isn’t an extra cost.

Part of your monthly payment your servicer sets aside to pay property taxes and insurance for you. In Illinois, where taxes are high, this is often a third of the payment.

Insurance that protects the lender when you put less than 20% down. Conventional PMI can be removed as you build equity; FHA’s version works differently. Eddie will show you both.

Fees paid up front to lower your rate. Sometimes worth it, often not — it depends on how long you’ll keep the loan. The break-even math is the whole decision.

The annual percentage rate: your interest rate plus certain loan costs, expressed as a yearly rate. It’s the number to compare between lenders, not the interest rate alone.

A commitment to a specific interest rate for a set period while your loan closes. Locking is a decision you make with Eddie once you’re under contract.

Pre-qualified is an estimate from a conversation. Pre-approved means your income, assets and credit have actually been reviewed. Sellers only care about the second one.

Your monthly debt payments divided by your gross monthly income. It’s one of the main things underwriters use to decide how much house you qualify for.

A three-digit summary of your credit history. Different programs have different minimums — and a score that’s not there yet usually has a clear path to get there.

Money from a family member for your down payment or closing costs. Allowed on most programs with a simple letter — very common with first-time buyers.

Money left in your accounts after closing. Some programs require a certain amount; all underwriters like to see some.

An Individual Taxpayer Identification Number. Some loan programs can work with ITIN borrowers; guidelines vary, so it’s a conversation to have with Eddie early.

An independent estimate of the home’s value, ordered after your offer is accepted. The lender uses it to make sure the loan amount makes sense for the property.

The lender’s review of your entire file — income, assets, credit, appraisal. Conditions (requests for one more document) are normal, not a bad sign.

Items the underwriter needs before final approval — an updated pay stub, a letter explaining a deposit. Eddie tells you exactly what and why.

A standardized three-page form you receive within three business days of applying, showing the loan terms and estimated costs. It’s designed to be compared lender to lender.

The final version of your loan terms and costs, delivered at least three business days before closing. Eddie reviews it with you line by line.

The words everyone waits for: underwriting is done, all conditions are met, and the closing can be scheduled.