The words your lender and agent keep saying, and what they actually mean

Real estate speak

“The Florida Realtors/Florida Bar contract in which the seller isn't obliged to make repairs.”

Plain English

The buyer can still inspect and cancel during the inspection period, and the seller must still disclose known hidden defects.

Real estate speak

“A tax rule letting investors defer capital gains tax by reinvesting sale proceeds in another investment property.”

Plain English

Strict deadlines apply: 45 days to identify the new property and 180 days to close. Talk to a tax adviser first.

Real estate speak

“An inspection of the roof, electrical, plumbing and heating/air conditioning systems.”

Plain English

Florida insurers often require it for older homes before they will write a policy.

Mortgage speak

“A federal rule requiring lenders to make a reasonable, good-faith determination, based on verified information, that a borrower can repay a mortgage.”

Plain English

Lenders must check that you can actually afford the loan. They look at income, assets, debts, credit and the full payment. That is why they ask for so many documents.

Check your DTI →

Real estate speak

“The rate at which available homes in a market sell over a period, often expressed as months of inventory.”

Plain English

How fast homes are selling. If it would take only a few months to sell everything on the market, sellers have the edge. If it would take many months, buyers have more leverage.

Real estate speak

“A secondary, self-contained living unit on the same lot as a primary residence, such as a garage apartment, guest house or in-law suite.”

Plain English

A small second home on the same property, like a garage apartment or backyard cottage, with its own kitchen and bath. Local zoning decides if you can have one and whether you can rent it. Check permits before buying a home that has one.

Real estate speak

“An insurance valuation method equal to replacement cost minus depreciation for age and wear.”

Plain English

The policy pays the depreciated value, so an old roof or old furniture pays out much less than replacing it. Some Florida policies use this for older roofs. Check your declarations page so you are not surprised after a claim.

Real estate speak

“A document attached to and made part of a real estate contract that adds terms, conditions or disclosures not covered by the main form.”

Plain English

Extra pages added to the contract to cover special situations, like an HOA, a short sale or a seller staying after closing. Once signed, it is part of the deal just like the main contract.

Mortgage speak

“A loan with a fixed rate for an initial period, after which the rate adjusts based on an index plus a margin.”

Plain English

A lower starting rate for a set number of years, then the rate can go up or down. A 5/6 ARM is fixed for 5 years, then adjusts every 6 months, within limits called caps.

ARM pros and cons →

Real estate speak

“The estimated market value of a property after planned repairs and improvements are completed.”

Plain English

What a fixer-upper should be worth once the work is done, based on similar updated homes that sold nearby. Flippers and hard money lenders use it to decide what to pay and lend.

Mortgage speak

“An adjustment on the closing disclosure that ensures the initial escrow deposit does not exceed what federal escrow accounting rules allow.”

Plain English

This line on your closing papers is usually a credit to you. It trims the escrow deposit so the lender does not collect more than the law allows. It looks confusing, but it is just a math correction.

Mortgage speak

“The schedule of paying off a loan through regular payments of principal and interest.”

Plain English

How your loan gets paid down over time. Early payments are mostly interest; later ones are mostly principal. Extra payments speed it up.

See my amortization table →

Mortgage speak

“A licensed appraiser estimates the home's value.”

Plain English

An independent expert visits the property and checks that the home is worth the price you're paying.

Good to know: If the appraisal comes in below the price, you may be able to renegotiate, pay the difference or, depending on your contract, cancel.

Real estate speak

“A contract provision allowing the buyer to renegotiate or cancel if the property appraises below the purchase price.”

Plain English

If the appraiser says the home is worth less than you agreed to pay, this clause lets you ask for a lower price, cover the gap yourself or walk away with your deposit, depending on the contract wording.

Real estate speak

“The difference between the contract price and a lower appraised value.”

Plain English

The lender lends on the lower figure, so someone has to cover the gap: the buyer pays it, the seller lowers the price, or you meet in the middle.

Mortgage speak

“An offer from an automated underwriting system allowing certain loans to close without a traditional appraisal, using existing property data to support the value.”

Plain English

Sometimes the system has enough data about the home that no appraiser needs to visit. That can save you the appraisal fee and some time. Fannie Mae now calls this value acceptance, and Freddie Mac has a similar program. Not every loan or property qualifies.

Good to know: You can usually still choose to order an appraisal if you want an independent opinion of value.

Real estate speak

“An increase in a property's market value over time due to market conditions, inflation or improvements.”

Plain English

Your home or rental becoming worth more over the years. It is never guaranteed and values can also drop, so many investors look for properties that work even if prices stay flat.

Check a Home Value →

Mortgage speak

“The yearly cost of a loan, including the interest rate and certain lender fees, expressed as a percentage.”

Plain English

The loan's "true" price tag. It's usually a little higher than the interest rate because it includes some fees, which makes it useful for comparing offers.

Mortgage speak

“The midpoint household income for a metro area or county, published annually by HUD and used to set eligibility for housing programs.”

Plain English

The middle income for your area. Programs set limits as a percentage of it, like 80 or 120 percent of AMI. The figure changes each year and varies by county and household size.

Mortgage speak

“A published market interest rate benchmark to which an adjustable-rate mortgage is tied and which, plus the margin, sets the new rate at each adjustment.”

Plain English

The public market rate your adjustable loan follows. When the index goes up or down, your rate follows at the next reset. Most new ARMs today use SOFR as the index.

Adjustable rate mortgages →

Mortgage speak

“A fixed percentage set at closing that is added to the index to determine an adjustable-rate mortgage's interest rate after each adjustment.”

Plain English

The lender's fixed add-on to the index when your adjustable rate resets. If the index is 4% and the margin is 2.75%, your new rate is 6.75%, subject to your caps. The margin never changes for the life of the loan.

Adjustable rate mortgages →

Mortgage speak

“Contractual limits on how much an adjustable rate may change at the first adjustment, at each later adjustment, and over the life of the loan.”

Plain English

Limits on how much an adjustable rate can rise. Caps are often shown as three numbers, like 2/1/5: the first change, each later change, and the most it can ever go above the start rate. Know your worst-case payment before you sign.

Adjustable rate mortgages →

Real estate speak

“The value assigned to a property by the property appraiser for tax purposes, which in Florida may be capped below just value.”

Plain English

The value the county uses to figure your property taxes, before exemptions. In Florida it is often lower than market value for long-time owners because of caps. It is not the same as appraised value or what the home would sell for.

Mortgage speak

“A mortgage that qualifies a borrower by converting liquid assets into a calculated monthly income stream over a set number of months.”

Plain English

A loan for people with large savings or investments but little regular income, such as retirees. The lender divides your eligible assets by a set number of months and treats that as income. You do not actually have to spend the money.

Real estate speak

“A requirement in some HOA or condominium governing documents that the association review and approve a buyer or tenant before a sale or lease.”

Plain English

Some associations must approve a new buyer or renter before closing or move-in. This may include an application, fee, background check or interview. Build the timeline into your contract, and also check the rental rules if you plan to lease the home.

Real estate speak

“Money an HOA or condominium association sets aside for future major repairs and replacement of common elements such as roofs, paving and elevators.”

Plain English

The association's savings account for big future repairs. Low reserves raise the chance of special assessments or fee increases. Lenders and buyers look at the reserves when judging a condo or HOA.

Mortgage speak

“A mortgage that a qualified buyer may take over from the seller, keeping the existing interest rate, balance and remaining term, subject to lender approval.”

Plain English

The buyer takes over the seller's loan instead of getting a new one. That can be great if the old rate is low. FHA, VA and USDA loans are usually assumable with approval, while most conventional loans are not. The buyer must still cover the seller's equity.

Good to know: On a VA assumption, ask how the seller's VA entitlement will be handled before agreeing.

Mortgage speak

“A person added to another's credit card account who can use the card but is not legally responsible for the debt.”

Plain English

Being added to someone else's card. If they pay on time and keep the balance low, it can help your score. If they pay late, it can hurt you. Some mortgage underwriting gives these accounts less weight.

Mortgage speak

“Fannie Mae's Desktop Underwriter and Freddie Mac's Loan Product Advisor systems that evaluate a loan application.”

Plain English

The computer's first opinion on your loan. A human underwriter then checks the documents.

Real estate speak

“An automated valuation model that estimates property value using algorithms applied to public records, sales data and listing information.”

Plain English

The instant home value you see on websites. It is a computer guess based on records and nearby sales. It cannot see your upgrades, condition or view, so it can be far off. Use it as a starting point, not a price.

Get a real home value →

Real estate speak

“An offer accepted in secondary position that becomes the primary contract only if the existing contract is terminated.”

Plain English

You get in line behind the current buyer. If their deal falls apart, yours moves up without starting over. Make sure you know how and when you can withdraw.

Mortgage speak

“A mortgage that does not fully amortize over its term, leaving a large lump-sum balance due at maturity.”

Plain English

A loan with regular payments for a few years, then one big payment of the remaining balance at the end. Most people plan to sell or refinance before that date. If you cannot, you could be in trouble.

Good to know: Seller financing in Florida often uses a balloon. Know the due date and have a plan to pay it.

Mortgage speak

“A loan that verifies income from 12 to 24 months of bank statements instead of tax returns.”

Plain English

Helps self-employed borrowers whose tax returns show less income because of business write-offs.

Bank statement loans explained →

Mortgage speak

“A payment schedule of half the monthly payment every two weeks, resulting in 26 half-payments, or 13 full payments, per year.”

Plain English

Paying half your mortgage every two weeks adds up to one extra full payment each year. That cuts years off a 30-year loan and saves interest. You can get a similar result by adding a little extra to each monthly payment.

Good to know: Avoid third-party services that charge a fee to set this up. Ask your servicer how extra payments are applied.

Payoff plan calculator →

Mortgage speak

“A short-term loan secured by a borrower's current home that provides funds to purchase a new home before the existing one is sold.”

Plain English

Short-term money that uses the equity in the home you are selling to help buy your next one. It lets you buy before you sell. It is usually repaid when the old home closes, and rates and fees are higher than a normal mortgage.

Real estate speak

“A real estate licensee with the advanced license required to operate a brokerage and supervise sales associates.”

Plain English

The licensed person or company in charge. Sales associates must work under a broker, and their commissions are paid through the brokerage.

Real estate speak

“An estimate of a property's probable selling price prepared by a real estate broker or agent, often for lenders, short sales or portfolio reviews.”

Plain English

A price estimate from a real estate agent rather than a licensed appraiser. Banks often use it for short sales, foreclosures or to check a loan they hold. It is usually quicker and less detailed than a full appraisal.

Real estate speak

“An investment strategy of Buy, Rehab, Rent, Refinance and Repeat, used to recycle invested capital into additional properties.”

Plain English

Buy a fixer, fix it up, rent it out, then refinance based on the new higher value to pull your cash back out. Then do it again. It only works if the numbers and appraisal hold up.

See DSCR Loans →

Mortgage speak

“A plan that tracks income and expenses over a period to guide spending and saving.”

Plain English

A simple plan for where your money goes each month. Before buying, include the full house payment, utilities, upkeep and insurance, not just the loan amount a lender approves.

What Can I Afford? →

Real estate speak

“Earnest money a buyer pays a home builder when signing a new-construction contract, sometimes with additional deposits for upgrades.”

Plain English

The money you put down when you sign with a builder, plus any extra deposits for options. Builder contracts often make this money harder to get back than in a resale deal, so read the terms.

Good to know: Florida law has rules on how builders hold buyer deposits. Ask how and where yours is held.

Real estate speak

“Discounts or credits a builder offers, such as paying closing costs or buying down the rate.”

Plain English

Often tied to using the builder's lender or title company. Compare the whole deal, not just the incentive.

New construction homes →

Real estate speak

“A new-home warranty commonly covering workmanship for one year, major systems for two years and structural defects for ten years.”

Plain English

Coverage from the builder for problems in a new home. A common setup is 1 year for workmanship, 2 years for plumbing, electrical and HVAC, and 10 years for major structural issues. Read your actual warranty.

Good to know: Report issues in writing before each deadline and keep copies.

Mortgage speak

“A mortgage lender, often affiliated with the builder, whose use is encouraged through incentives such as closing cost credits or rate buydowns.”

Plain English

The lender the builder wants you to use, usually with a closing cost credit or rate deal as the reward. You are generally free to use any lender, so compare total costs before deciding.

Compare Mortgage Options →

Real estate speak

“Written authorization from a local building department to construct, alter, repair or demolish a structure, subject to plan review and inspections.”

Plain English

Approval from the city or county before doing work like a new roof, water heater, addition or pool. Inspectors check the work. Unpermitted work can cause problems with insurance, appraisals and selling later.

Mortgage speak

“A business's cash flow available for debt payments divided by its total loan payments.”

Plain English

Shows whether the business earns enough to repay. Many lenders want at least 1.15 to 1.25, meaning $1.15 to $1.25 of cash flow for every $1 of payments.

What business lenders look for →

Mortgage speak

“A revolving credit facility a business can draw on and repay as needed, usually reviewed each year.”

Plain English

A safety net for uneven cash flow. You only pay interest on what you use.

Real estate speak

“A written agreement between a buyer and a brokerage describing the services and compensation.”

Plain English

Since August 2024, agents in MLS areas need one signed before touring homes with you. It spells out what you get and how your agent is paid.

Real estate speak

“Market conditions often measured by months of inventory.”

Plain English

Under about 6 months of homes for sale favors sellers; more than 6 favors buyers. It changes how you price and negotiate.

Real estate speak

“A rental property's yearly net operating income divided by its value.”

Plain English

A quick way to compare investments. $15,000 a year net on a $250,000 property is a 6% cap rate.

Real estate speak

“The net amount of cash a rental property produces after collecting rent and paying all operating expenses and debt service.”

Plain English

What is left in your pocket each month after the rent comes in and every bill is paid, including the mortgage. Positive cash flow means the property pays you. Negative means you are paying to keep it.

Good to know: Budget for repairs, vacancies and insurance increases, not just the mortgage, or your real cash flow will be lower than you expect.

See DSCR Loans →

Mortgage speak

“The total amount of money due at closing, including your down payment, closing costs and any prepaid items.”

Plain English

The total you need to bring to closing. It usually includes your down payment, closing costs and prepaid expenses such as property taxes and homeowners insurance.

Estimate my cash to close →

Mortgage speak

“A refinance in which the borrower pays money at closing to reduce the loan balance, often to qualify for a better rate or remove mortgage insurance.”

Plain English

The opposite of cash-out. You bring money to closing to pay the balance down while you refinance. People do this to get under a loan-to-value limit, drop mortgage insurance or get a lower rate.

Real estate speak

“The annual pre-tax cash flow from an investment divided by the total cash invested, expressed as a percentage.”

Plain English

How hard the cash you actually put in is working. If you invested $50,000 in down payment, closing costs and repairs, and the property nets $4,000 a year, your cash-on-cash return is 8%.

Mortgage speak

“A new, larger mortgage that pays off the old one and gives you the difference in cash.”

Plain English

Turns equity into cash, but replaces your current rate. If your current rate is low, a HELOC may be the better choice.

Real estate speak

“A special taxing district, common in newer Florida communities, that funds roads, utilities and amenities.”

Plain English

An extra yearly charge in many newer Florida neighborhoods that pays for the community's roads, water and amenities. It usually appears on your property tax bill.

Real estate speak

“A document issued by the local building authority certifying that a structure meets code and is safe to occupy.”

Plain English

The official sign-off from the city or county that a new home is finished and safe to live in. Lenders generally will not close a new-construction loan until it is issued.

Mortgage speak

“A nonprofit organization certified by the SBA to provide the SBA-backed portion of 504 loans.”

Plain English

The partner that works alongside your bank on an SBA 504 loan.

Mortgage speak

“The Consumer Financial Protection Bureau, a federal agency created in 2010 that writes and enforces many consumer financial rules, including mortgage disclosure rules.”

Plain English

This federal agency is behind many of the consumer protections in your mortgage, such as the Loan Estimate and Closing Disclosure forms. Its website also has free guides for home buyers.

Real estate speak

“The recorded history of ownership transfers of a property from one owner to the next.”

Plain English

The list of everyone who has owned the home, in order. A gap or error in that history can delay closing until it is cleared up.

Mortgage speak

“A qualifying event, such as a change in loan amount, property value or borrower eligibility, that allows a lender to issue a revised Loan Estimate.”

Plain English

Lenders cannot raise most fees without a valid reason. If something real changes, like a lower appraisal, a new loan amount or you changing loan type, they can send you an updated Loan Estimate with new numbers.

Mortgage speak

“A reorganization bankruptcy in which a debtor repays creditors through a court-approved plan, usually over three to five years.”

Plain English

A type of bankruptcy where you keep your property and pay back debts through a court plan over several years. Some loan programs allow a mortgage during the plan with court or trustee approval.

Mortgage speak

“A liquidation bankruptcy in which eligible unsecured debts are discharged, sometimes after nonexempt assets are sold to pay creditors.”

Plain English

A type of bankruptcy that wipes out many debts, usually in a few months. It can stay on your credit report for up to 10 years, but you can often qualify for a mortgage again after a waiting period.

Good to know: This is a legal matter. Talk to a bankruptcy attorney before filing.

Mortgage speak

“An account a creditor has written off as a loss after prolonged nonpayment, usually around 180 days past due.”

Plain English

The lender gave up on getting paid and wrote the debt off its books. You still legally owe it, and it is a serious negative mark that can stay on your report for up to seven years.

Real estate speak

“Florida's state-created, not-for-profit insurer of last resort, providing property coverage to owners who cannot find comparable coverage in the private market.”

Plain English

Florida's backup insurance company for homeowners who cannot find a private policy at a reasonable price. Eligibility rules apply, and policyholders may be moved to private insurers through takeouts. Citizens also has its own flood insurance requirements for many policies.

Real estate speak

“A National Association of Realtors MLS policy generally requiring a listing to be submitted to the MLS shortly after it is publicly marketed.”

Plain English

A rule meant to stop agents from advertising a home publicly while hiding it from the MLS. Some exceptions exist, such as office-exclusive listings when the seller asks in writing. These rules have changed in recent years and vary by MLS, so ask your agent about current local rules.

Mortgage speak

“All conditions have been met and the loan is approved for closing.”

Plain English

Your loan file is complete, all documents and conditions are approved, and your closing date can be scheduled. You'll receive the final closing details from the title company.

Real estate speak

“The final step of a sale, when documents are signed, funds are paid out and ownership transfers.”

Plain English

The day the home becomes yours: you sign the paperwork, the money changes hands, and you get the keys.

Real estate speak

“Fees for the loan, title, government recording and prepaid items, paid at closing.”

Plain English

Usually about 2% to 5% of the price for buyers. Sellers or builders sometimes help pay them.

Estimate my closing costs →

Real estate speak

“A written amendment signed by buyer and seller moving the scheduled closing date to a later date.”

Plain English

Moving closing to a later day, often because the loan or repairs need more time. Both sides must agree in writing. Check that your rate lock and other deadlines still line up.

Mortgage speak

“The final statement of your loan terms and closing costs.”

Plain English

You receive it at least 3 business days before closing. Check it against your Loan Estimate and ask about anything that changed.

Real estate speak

“An informal term for the closing appointment where buyers and sellers sign final documents and funds change hands.”

Plain English

This just means closing day, when you sign the paperwork. Buyers and sellers may sign together or at different times, and some sign remotely. Bring a valid photo ID and any certified funds or wire confirmation you were asked for.

Real estate speak

“A Comprehensive Loss Underwriting Exchange report from LexisNexis listing insurance claims filed on a property or by a person, generally for the past seven years.”

Plain English

A history of insurance claims tied to a home. Insurers check it when pricing your policy. A seller can request one for the property, which helps buyers see past water, roof or storm claims.

Real estate speak

“An estimate of a property's value based on recent sales of similar nearby homes.”

Plain English

A Realtor's price check. It compares your home with similar homes that sold recently nearby, and it's how list prices and offers are set.

Get my home value report →

Mortgage speak

“An unpaid debt that the original creditor has turned over or sold to a collection agency.”

Plain English

A bill that went unpaid long enough to be sent to a collector. It hurts your score and can stay on your report for up to seven years. Some loan programs require paying certain collections before closing.

Good to know: Talk to your loan officer before paying an old collection. The timing and method can matter.

Real estate speak

“A system of marital property law, used in nine states, under which most property acquired during the marriage is owned equally by both spouses.”

Plain English

In community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin), most things a married couple buys during the marriage belong to both of them equally. Florida is not a community property state: married couples here usually own their home as tenants by the entirety, although since 2021 couples can choose a community property trust.

Good to know: Moving to Florida from a community property state? Ask an attorney how your existing property is treated here.

Real estate speak

“Recently sold properties similar in location, size, age and features, used with value adjustments to estimate a subject property's market value.”

Plain English

Recent sales of similar homes nearby, used to judge what a home is worth. Appraisers adjust each comp up or down for differences like a pool, extra bedroom or garage. Good comps are recent, close by and truly similar.

Check your home value →

Mortgage speak

“You've been approved, subject to a few more items.”

Plain English

You're in a really good spot! The lender just needs a few more things, such as the appraisal, a job check or final underwriting items, before the final approval.

Mortgage speak

“Items an underwriter requires a borrower or third party to provide or resolve before a loan can receive final approval and clear to close.”

Plain English

After the underwriter reviews your file, they send a list of things still needed, such as a recent bank statement or an explanation of a credit inquiry. Once every item is satisfied, the loan can move to clear to close.

Good to know: Send everything on the list at once, and send complete documents with every page. Partial answers usually come back as new conditions.

Real estate speak

“A lender form completed by a condominium association covering budget, reserves, owner occupancy, delinquencies, litigation and insurance to determine project eligibility.”

Plain English

A form the lender sends to the condo association asking about finances, rentals, lawsuits and building condition. The answers decide whether the building qualifies for the loan. Problems here can kill a condo deal, so it should be ordered early.

Real estate speak

“A form of ownership in which an owner holds title to an individual unit plus an undivided share of the common elements, governed by a condominium association.”

Plain English

You own the inside of your unit and share ownership of everything else, like the roof, halls, pool and grounds, with the other owners. A condo association runs the building and charges monthly fees. Lenders also review the building itself, not just you.

Good to know: Ask for the budget, reserves and recent meeting minutes before you commit.

Mortgage speak

“The maximum loan size Fannie Mae and Freddie Mac can buy, set each year.”

Plain English

The line between a regular and a jumbo loan: $832,750 for a one-unit home in most counties in 2026, and up to $1,249,125 in high-cost areas.

Mortgage speak

“A single loan that funds home construction in stages and then converts to a long-term mortgage once the home is complete.”

Plain English

One loan that pays the builder as the home is built, then turns into your regular mortgage when it is done. You close once, which can save on closing costs. Often used with custom builders.

Real estate speak

“A condition in the purchase contract that must be met for the sale to go ahead.”

Plain English

A safety exit. Common ones cover financing, the appraisal and the inspection. If one isn't met in time, you may be able to cancel and get your deposit back, depending on the contract.

Real estate speak

“Listing statuses showing an offer has been accepted.”

Plain English

Contingent means conditions such as inspection or financing are still open. Pending usually means they're cleared and the sale is heading to closing.

Mortgage speak

“A conventional mortgage with a maximum 97% loan-to-value ratio, generally requiring at least one borrower to be a first-time homebuyer when not using an income-limited program.”

Plain English

A regular conventional loan with just 3% down. There is no income limit, but usually at least one buyer must not have owned a home in the past three years. You pay monthly mortgage insurance until you build enough equity.

Conventional loans →

Mortgage speak

“A mortgage not insured or guaranteed by the government, usually following Fannie Mae or Freddie Mac guidelines.”

Plain English

The most common loan. As little as 3% down for some buyers, and the mortgage insurance can be removed later.

Conventional loans explained →

Real estate speak

“A form of ownership in which a corporation owns the building and residents own shares in the corporation, giving them a proprietary lease to occupy a specific unit.”

Plain English

Instead of owning your apartment, you own shares in the company that owns the whole building, and those shares give you the right to live in your unit. A co-op board usually approves buyers and sets the rules. Co-ops are less common than condos in Florida.

Good to know: Fewer lenders finance co-ops, and the board approval can take time. Ask for the co-op's budget, rules and any limits on renting or selling.

Mortgage speak

“A lender that originates, underwrites and funds loans in its own name, then sells them to larger investors under preset guidelines.”

Plain English

This lender makes and funds your loan, then sells it to a bigger company. That is normal and does not change your loan terms. You may simply get a letter telling you where to send payments.

Real estate speak

“A response to an offer that changes one or more of its terms.”

Plain English

The back-and-forth on price or terms. A counteroffer replaces the original offer, which can no longer simply be accepted.

Mortgage speak

“A small loan held in a savings account while the borrower makes payments, with the funds released once the loan is repaid.”

Plain English

You make monthly payments first and get the money at the end. Your on-time payments are reported to the bureaus, which helps build credit. Many credit unions offer them.

Mortgage speak

“A free security measure that blocks new creditors from accessing a consumer's credit report until the consumer lifts it.”

Plain English

Locks your credit so no one can open new accounts in your name. It does not hurt your score. You must lift it at all three bureaus before applying for a mortgage, or the lender cannot pull your report.

Mortgage speak

“A credit scoring factor reflecting the variety of account types a borrower manages, such as credit cards, auto loans and mortgages.”

Plain English

Having different kinds of credit, like a card and a car loan, can help your score a little. It is a small factor. Do not open a loan you do not need just to improve your mix.

Mortgage speak

“A record of your borrowing and repayment history kept by Equifax, Experian and TransUnion.”

Plain English

Check yours for free at AnnualCreditReport.com. Checking your own report doesn't lower your score, and you can dispute errors for free.

Mortgage speak

“A three-digit number, commonly 300 to 850, that summarizes your credit history.”

Plain English

Shows lenders how reliably you repay debts. Paying on time (about 35% of a FICO score) and keeping card balances low (about 30%) matter most. Income is not part of your score.

Mortgage speak

“The share of your available revolving credit that you are using.”

Plain English

A $2,000 balance on a $5,000 limit is 40%. Keeping it under 30%, ideally under 10%, can raise your score quickly.

Real estate speak

“The attractiveness of a property as viewed from the street, influencing buyer first impressions and perceived value.”

Plain English

How the home looks from the street. Fresh landscaping, a clean driveway, a painted front door and working lights make buyers want to see more. Small, cheap fixes often pay off when selling.

Real estate speak

“A builder that constructs a one-of-a-kind home designed to the owner's specifications, often on the owner's land.”

Plain English

A builder who builds a home designed just for you, often on a lot you own. You choose nearly everything, but it usually costs more and takes longer.

Real estate speak

“The number of days a property has been listed for sale.”

Plain English

A clue to negotiating room. Homes that sit a long time often sell for less than their first asking price.

Mortgage speak

“Combining multiple debts into a single new loan, often at a lower interest rate or with one monthly payment.”

Plain English

Rolling several debts into one payment. It can save interest and simplify bills, but only helps if you stop adding new debt. Avoid opening a consolidation loan right before applying for a mortgage.

Mortgage speak

“The total amount of principal and interest payments required on a loan over a given period.”

Plain English

Your loan payments, usually measured by the month or year. For rentals, lenders compare the rent or income to the debt service to see if the property can carry the loan.

See DSCR Loans →

Real estate speak

“The legal document that transfers ownership of real property.”

Plain English

Proof that you own the home. It's recorded with the county after closing.

Mortgage speak

“An agreement in which a borrower voluntarily transfers the property title to the lender to satisfy the mortgage and avoid foreclosure.”

Plain English

You hand the house back to the lender instead of going through foreclosure. It can be faster and less damaging, but it is still a serious credit event and the lender has to agree.

Real estate speak

“A party's failure to perform an obligation required by a contract, such as closing on time or delivering required documents.”

Plain English

Breaking the contract, like a buyer refusing to close without a valid reason or a seller backing out. The contract spells out what the other side can do about it. Talk to an attorney if it happens.

Real estate speak

“Repairs and upkeep that have been postponed, resulting in accumulated wear that can reduce property value and increase future costs.”

Plain English

Repairs that were put off, like an aging roof, old AC, peeling paint or leaks. Buyers and appraisers notice it and price it in. In condos, deferred maintenance by the association often leads to big assessments later.

Mortgage speak

“A down payment assistance loan with no monthly payments, due in full when the home is sold, refinanced, paid off or no longer the primary residence.”

Plain English

A down payment loan you do not pay monthly. Instead, you pay it back later, usually when you sell or refinance. Plan for it, because it reduces what you take home at sale.

See Assistance Programs →

Real estate speak

“A federal tax deduction that allows owners of income property to recover the cost of the building over its IRS-defined useful life.”

Plain English

The IRS lets rental owners deduct part of the building's cost each year, generally over 27.5 years for residential rentals. Land does not count. It can lower your taxes now, but some may be taxed back when you sell.

Good to know: Depreciation rules and recapture are complex. Check with a tax professional before you buy or sell a rental.

Real estate speak

“Optional finishes and features a new-home buyer selects at the builder's design studio for an added cost above the base price.”

Plain English

The extras you pick for a new home, like flooring, cabinets, counters and lighting. They add up fast. Some items, like paint, may be cheaper to do yourself after closing.

Good to know: Prioritize things that are hard to change later, like structural options, outlets and plumbing.

Mortgage speak

“A mortgage company or bank that takes applications, underwrites and funds loans in its own name, selling only its own loan products.”

Plain English

You work straight with the company that makes the loan. A bank or credit union may also offer checking and savings, while a mortgage company only does home loans. Either way, you get only that company's programs and pricing.

Mortgage speak

“The settlement agent's payment of funds at closing to the seller, prior lenders, agents, taxing authorities and service providers as shown on the settlement statement.”

Plain English

This is when the money actually goes out. The closer pays the seller, pays off old loans, pays the agents and pays each fee listed on your Closing Disclosure. Sellers usually get their proceeds by wire or check soon after.

Mortgage speak

“Prepaid interest paid at closing in exchange for a lower interest rate.”

Plain English

Paying extra up front to get a lower rate. One point costs 1% of the loan amount. It pays off if you keep the loan long enough.

Real estate speak

“A Florida tax on documents, including deeds (70 cents per $100 of the price) and mortgage notes (35 cents per $100).”

Plain English

On a $300,000 sale the deed stamps are $2,100, customarily paid by the seller in most Florida counties.

Include it in my seller net sheet →

Mortgage speak

“Programs offering grants or loans to help eligible buyers cover down payment and sometimes closing costs.”

Plain English

Help paying the upfront cash to buy a home. It may be a gift or a second loan, and it usually comes with income limits, price limits and a homebuyer class. Funding can run out, so apply early.

See Assistance Programs →

Mortgage speak

“Down payment assistance provided as a gift that does not need to be repaid when program requirements are met.”

Plain English

Free money toward your down payment or closing costs that you do not pay back. Grants often come with a slightly higher interest rate on the main loan, so compare the total cost.

See Grant Programs →

Mortgage speak

“An investor loan qualified on the property's rental income compared with its payment (the debt service coverage ratio).”

Plain English

If the rent covers the payment, you may qualify without using your personal income. A DSCR of 1.25 means the rent is 25% more than the payment.

DSCR loans explained →

Mortgage speak

“Your total monthly debt payments divided by your gross monthly income.”

Plain English

How much of your income goes to debt payments, including the new house payment. Lower is better; many loans allow up to about 43% to 50%.

Check my DTI →

Real estate speak

“A good-faith deposit submitted with your contract.”

Plain English

Money that says "I'm serious about buying this house." It's held by the title company or escrow agent and usually counts toward your cash at closing. And no, it's not an extra fee your lender keeps.

Real estate speak

“A right for someone else to use part of a property for a specific purpose.”

Plain English

For example, a utility company's right to run lines along the back of your yard.

Real estate speak

“The date a real estate contract becomes binding, typically when the last party signs or initials the final offer or counteroffer and it is delivered.”

Plain English

The day the deal officially starts. Most contract deadlines, like the inspection period and loan approval, are counted from this date, so know exactly what it is.

Good to know: Write the effective date on your calendar and count every deadline from it right away.

Real estate speak

“A FEMA form completed by a licensed surveyor or engineer documenting a building's elevation relative to the base flood elevation.”

Plain English

A surveyor's report showing how high your home sits compared to expected flood levels. It can help price flood insurance more accurately and sometimes lower it. Ask the seller if one already exists.

Mortgage speak

“Savings set aside for unexpected expenses or income loss, commonly three to six months of essential expenses.”

Plain English

Money saved for surprises, like a broken AC or a job gap. Do not use every dollar for the down payment. Homes come with repairs, and having savings left also helps you get approved.

Mortgage speak

“A benefit in which an employer provides grants, loans or other help toward an employee's home purchase.”

Plain English

Some employers, such as hospitals, schools and universities, help workers buy homes with grants or low-cost loans. Ask HR. The money must be documented, and some of it may be taxable income.

Real estate speak

“Something built over a property line onto neighboring land.”

Plain English

Like a neighbor's fence or shed on your lot. A survey usually reveals it.

Mortgage speak

“A loan or lease used to buy business equipment, with the equipment as the main collateral.”

Plain English

Often easier to get than an unsecured loan because the lender can take back the equipment if payments stop.

Mortgage speak

“The home's market value minus what you owe on it.”

Plain English

The part of your home you truly own. It grows as you pay down the loan and as the value rises.

Mortgage speak

“The cash or assets the owners put into a business project or purchase.”

Plain English

Your share of the risk. Expect at least 10% for SBA startup and business purchase loans, and often more for commercial property.

Real estate speak

“An offer provision that automatically raises the buyer's price by a set increment above competing offers, up to a stated maximum.”

Plain English

A way to say: I will beat any other offer by a set amount, up to my limit. It can help in bidding wars, but it shows the seller your top price, and some sellers will not accept them.

Mortgage speak

“Funds collected with your mortgage payment for property taxes and homeowners insurance.”

Plain English

Part of your monthly payment is set aside so your property taxes and homeowners insurance can be paid when they're due.

Good to know: Not to be confused: escrow is also used while you're buying, to hold money (like your deposit) safely until closing. Same word, different purpose.

Mortgage speak

“A yearly review comparing what was collected in your escrow account with the taxes and insurance actually paid.”

Plain English

If taxes or insurance went up, your payment may rise or you may owe a shortage. If they went down, you may get a refund.

Real estate speak

“The buyer's deposit held by a title company, attorney or broker until closing.”

Plain English

Florida contracts call earnest money the escrow deposit. It counts toward your cash to close.

Mortgage speak

“A lender's agreement to let the borrower pay property taxes and homeowners insurance directly instead of through a monthly escrow account.”

Plain English

You pay your own tax and insurance bills instead of having the lender collect them monthly. It usually requires a conventional loan and enough equity, and some lenders charge a small fee or price change for it. You must budget for large yearly bills.

Good to know: Government loans like FHA and VA generally require an escrow account.

Real estate speak

“A certificate issued by an HOA or condominium association stating the seller's account status, including dues, assessments and any amounts owed.”

Plain English

The association's official statement of what the seller owes, including dues, fees and assessments, as of a certain date. The title company orders it so everything is paid at closing. Florida law limits how much associations can charge for it.

Real estate speak

“The legal process by which a landlord removes a tenant from a rental property through the courts, typically for nonpayment or lease violations.”

Plain English

The court process to remove a tenant. It starts with a proper written notice and can end with a court order. Landlords cannot change locks, cut utilities or remove belongings on their own.

Good to know: Notice requirements are strict. Mistakes can restart the clock, so many landlords use an attorney.

Real estate speak

“A listing whose agreement term has ended without the property selling.”

Plain English

The home did not sell before the listing agreement ran out. Common reasons are price, condition or marketing. The seller can relist with the same or a different agent.

Real estate speak

“Federal law banning housing discrimination based on race, color, religion, sex, disability, familial status or national origin.”

Plain English

Everyone gets the same service and information. Florida law adds similar protections.

Our fair housing commitment →

Mortgage speak

“The Federal National Mortgage Association, a government-sponsored enterprise that buys conforming mortgages from lenders and packages them into mortgage-backed securities.”

Plain English

Fannie Mae does not lend to you directly. It buys loans from lenders and sets many of the rules conventional loans must follow. It is overseen by the Federal Housing Finance Agency.

Conventional loans →

Real estate speak

“The most complete form of ownership of real property (fee simple absolute): the owner holds the land and everything permanently attached to it for an unlimited time, with the right to use, sell, lease, mortgage or leave it to heirs.”

Plain English

You own the land and the home on it outright, with no end date. You can live there, rent it out, sell it, borrow against it or leave it to whoever you choose. It's how almost all houses, and many townhomes, are owned in Florida. You still have to follow zoning rules, pay property taxes and keep to any HOA rules.

Good to know: A listing that says "fee simple" usually means you own the lot too, not just the building. Compare with a condo (you own the unit plus a share of the common areas) or a leasehold (someone else owns the land).

Mortgage speak

“Limits under federal disclosure rules on how much certain closing costs may increase between the Loan Estimate and closing without a valid change of circumstance.”

Plain English

Some fees cannot go up at all, like the lender's own charges. Others, as a group, can rise only 10 percent. Some, like prepaid interest and fees for providers you pick yourself, have no limit. If the lender goes over, it must refund you.

Mortgage speak

“A streamlined FHA renovation loan that finances a capped amount of non-structural repairs and improvements into the purchase or refinance mortgage.”

Plain English

An FHA loan that lets you roll the cost of smaller fixes, like a new roof, flooring, paint or appliances, into your mortgage. It cannot be used for major structural work such as adding rooms or moving load-bearing walls.

FHA 203(k) loans →

Mortgage speak

“An FHA renovation loan for larger or structural repairs that requires a HUD-approved 203(k) consultant to oversee the work and draw schedule.”

Plain English

The full version of the FHA renovation loan for big projects, including structural work. A HUD consultant reviews the plans and inspects the work before contractors are paid. Expect more paperwork and a longer closing.

FHA 203(k) loans →

Mortgage speak

“A mortgage insured by the Federal Housing Administration.”

Plain English

A low-down-payment loan (3.5% with a 580+ score) with flexible credit rules. It has mortgage insurance, usually for the life of the loan if you put less than 10% down.

FHA loans explained →

Mortgage speak

“A partial credit of the FHA upfront mortgage insurance premium applied toward a new FHA loan when the borrower refinances into FHA within three years.”

Plain English

If you refinance from one FHA loan into another within three years, part of the upfront insurance you paid is credited toward the new loan's upfront insurance. The credit shrinks each month. It is not paid to you in cash.

FHA loans →

Mortgage speak

“A refinance of an existing FHA loan into a new FHA loan with reduced documentation, often without an appraisal, provided the borrower receives a net tangible benefit.”

Plain English

A faster, simpler way to refinance an FHA loan into a new FHA loan, usually to get a lower payment. There is less paperwork and often no appraisal. You must have a good recent payment history and have had the loan for a minimum period.

FHA loans →

Mortgage speak

“A three-digit credit score from 300 to 850, created by Fair Isaac Corporation, that predicts how likely a borrower is to repay debt.”

Plain English

The best-known credit score and the one most mortgage lenders have used for years. Higher is better. Mortgage lenders often use older FICO versions, so your number may differ from the score your bank app shows.

Good to know: Ask your loan officer for the scores they pulled. Free app scores are a guide, not the number your loan is priced on.

Real estate speak

“The buyer's last look at the property shortly before closing.”

Plain English

Check that agreed repairs were done, appliances that stay are there, and nothing has changed.

Real estate speak

“A contract provision allowing the buyer to cancel and recover the deposit if the buyer cannot obtain the described mortgage loan within a set period.”

Plain English

Protection for buyers using a loan. If you apply in good faith and still cannot get approved by the deadline, you can usually cancel and get your deposit back. Miss the deadline and you may lose that protection.

Explore loan options →

Mortgage speak

“A closing document stating the borrower's first mortgage payment due date, payment amount and where to send payments.”

Plain English

This tells you when your first payment is due, how much it is and who to pay. Keep it handy. Your loan may be sold or transferred soon after closing, so watch your mail for any notice of a new company.

Check your payment →

Mortgage speak

“For most assistance programs, a buyer who has not owned a principal residence during the three years before purchase.”

Plain English

You may count as a first-time buyer even if you owned before, as long as you have not owned a home you lived in during the last three years. Each program sets its own exact rules.

See First-Time Buyer Help →

Real estate speak

“An investment strategy of purchasing a property, renovating it and reselling it within a short period for a profit.”

Plain English

Buying a home that needs work, fixing it and selling it quickly. Profit depends on buying right and controlling repair costs and time, since every month adds loan, tax and insurance costs.

Mortgage speak

“A loan whose interest rate stays the same for the full term.”

Plain English

Your principal-and-interest payment never changes, whatever happens to rates. Taxes and insurance can still change.

Fixed-rate loans explained →

Mortgage speak

“Choosing not to lock a mortgage interest rate yet, so the final rate will be set by market pricing at a later lock date.”

Plain English

Your rate is not locked, so it can go up or down until you lock it. Some people float hoping rates drop. The risk is that rates rise and your payment goes up. You must lock before closing.

Good to know: Ask your loan officer what deadline you need to lock by and whether a float-down option is available.

Real estate speak

“An area mapped by FEMA according to flood risk.”

Plain English

In a high-risk zone (such as zones A and V), lenders require flood insurance. Standard homeowners policies don't cover flooding, so check before you buy.

Real estate speak

“The Florida Realtors/Florida Bar residential sale contract under which the seller has limited repair obligations, as opposed to the companion AS IS version.”

Plain English

One of the two common Florida purchase contracts. With this version, the seller agrees to fix certain problems up to repair limits written in the contract. The AS IS version lets the buyer inspect and cancel, but the seller does not have to repair.

Real estate speak

“A property marketed and sold by its owner without a listing broker.”

Plain English

The owner sells without a listing agent. They may save on a listing fee but take on pricing, marketing, showings, negotiating and paperwork themselves.

Mortgage speak

“A temporary pause or reduction of payments agreed with the servicer.”

Plain English

Short-term breathing room during a hardship. The missed amounts still have to be repaid later.

Mortgage speak

“The legal process a lender uses to take and sell a property when the borrower stops paying.”

Plain English

The last resort. If you're struggling, call your loan servicer early; there are often options such as repayment plans or a loan modification.

Mortgage speak

“A mortgage for non-US residents purchasing US property, typically underwritten without US credit history and requiring a substantial down payment.”

Plain English

A loan for buyers who live outside the US, often for a Florida vacation home or rental. You may not need a US credit score, but expect a large down payment and extra paperwork. Funds usually must be in a US account before closing.

Mortgage speak

“A down payment assistance loan, usually at zero interest, that is forgiven over a set period if the borrower stays in the home.”

Plain English

A loan for your down payment that slowly disappears if you live in the home long enough. If you sell, refinance or move out early, you may have to repay part of it.

See Assistance Programs →

Mortgage speak

“An IRS form a taxpayer signs to authorize a lender to obtain official tax return transcripts through the IRS Income Verification Express Service.”

Plain English

You sign this so the lender can get a copy of your tax information straight from the IRS. They use it to check that the tax returns you gave them match what you filed. It replaced the older 4506-T for this use.

Mortgage speak

“A notice on a credit file requiring lenders to take extra steps to verify identity before extending new credit; an initial alert lasts one year.”

Plain English

A flag on your credit telling lenders to double-check it is really you. Placing it with one bureau covers all three. Expect your lender to call you to confirm when you apply.

Mortgage speak

“The Federal Home Loan Mortgage Corporation, a government-sponsored enterprise that buys conforming mortgages from lenders and issues mortgage-backed securities.”

Plain English

Freddie Mac works much like Fannie Mae. It buys loans from lenders and sets guidelines for conventional loans, which keeps money flowing for new mortgages. You never apply to it directly.

Conventional loans →

Mortgage speak

“The point at which the lender releases the loan proceeds to the settlement agent after all closing documents and conditions are satisfied.”

Plain English

Signing is not the last step. After you sign, the lender reviews the signed papers and sends the loan money. Once the lender has funded, the closer can pay everyone and the sale or refinance is complete.

Mortgage speak

“A signed statement that money from a relative or other approved donor is a gift, not a loan.”

Plain English

Lets family help with your down payment. The lender will also want to see where the money came from.

Mortgage speak

“The Government National Mortgage Association, a government corporation within HUD that guarantees mortgage-backed securities made up of FHA, VA and USDA loans.”

Plain English

Ginnie Mae does not buy or make loans. It guarantees investors will be paid on bonds backed by government loans like FHA, VA and USDA. That backing helps keep those loans available.

Real estate speak

“A valuation ratio equal to a property's price divided by its gross annual (or monthly) rental income.”

Plain English

A quick way to size up a rental. Divide the price by the yearly rent. A lower number usually means more rent for your money. It ignores expenses, so use it only as a first filter.

Mortgage speak

“Gross income is earnings before taxes and deductions; net income is the take-home amount after them.”

Plain English

Gross is your pay before taxes and deductions. Net is what hits your bank account. Lenders usually qualify you on gross income, but you pay bills with net, so budget on what you take home.

Mortgage speak

“A credit check by a lender when you apply for credit.”

Plain English

It can lower your score slightly. Shopping several mortgage lenders within a short window usually counts as one inquiry.

Mortgage speak

“A short-term, asset-based loan from a private lender secured by real estate, typically with higher rates and fees than conventional financing.”

Plain English

A fast, short-term loan for investors that is based mostly on the property, not your income. Expect higher rates, upfront points and a term of about a year or two. Common for flips.

Real estate speak

“The finished, conditioned living area of a home, excluding garages, unconditioned porches, lanais and storage, as used in appraisals and listings.”

Plain English

The size of the parts of the house that are finished and air conditioned. Garages, screened porches and lanais do not count. Listings, tax records and appraisals can show different numbers, so ask where the figure came from.

Good to know: An enclosed porch added without a permit may not be counted by the appraiser.

Mortgage speak

“An FHA-insured reverse mortgage used by borrowers age 62 or older to buy a new principal residence, combining a down payment with reverse mortgage proceeds.”

Plain English

A way for buyers 62 and older to buy a home with a large down payment and no monthly mortgage payment. The reverse mortgage covers the rest. You still must pay property taxes, insurance and HOA dues and keep up the home.

Reverse mortgages →

Mortgage speak

“A home equity line of credit: a revolving credit line secured by your home.”

Plain English

Borrow against your home's equity as you need it, like a credit card with a much lower rate, while keeping your first mortgage and its rate.

See what Extra Credit could save →

Real estate speak

“A request from a seller in a multiple-offer situation asking all buyers to submit their final, most competitive offer by a deadline.”

Plain English

The seller is saying: give me your final answer. There may be no more back and forth, so decide your true top price and terms before you submit.

Real estate speak

“The most common homeowners insurance form, covering the dwelling on an open-perils basis and personal property on a named-perils basis.”

Plain English

The standard policy for a house you own and live in. It covers the structure against most causes of damage unless excluded, like flood, and covers your belongings for a listed set of causes. Read the exclusions and deductibles.

Real estate speak

“A condominium unit-owner insurance policy covering interior walls and finishes, improvements, personal property, liability and loss assessments.”

Plain English

Insurance for condo owners. The association's master policy covers the building, and your HO-6 covers what is inside your unit, your belongings and your liability. Lenders typically require one when the master policy does not cover the interior.

Real estate speak

“An organization that manages a community's shared areas and enforces its rules.”

Plain English

The group that looks after a neighborhood's pools, gates and common areas and sets its rules. Owners pay dues, monthly or yearly, which lenders count in your payment.

Mortgage speak

“A lump-sum loan secured by a home's equity, usually as a second lien and usually at a fixed rate, repaid in equal installments over a set term.”

Plain English

You borrow a set amount against your home's equity all at once and pay it back with a fixed payment. Your first mortgage stays in place. It works well for a one-time cost like a roof or debt payoff when you want a predictable payment.

Real estate speak

“A professional examination of a home's condition before purchase.”

Plain English

Checks the roof, structure, plumbing, electrical, heating and cooling. Not required, but strongly recommended.

Mortgage speak

“A Freddie Mac conventional loan program for low-to-moderate income borrowers that permits down payments as low as 3% with reduced mortgage insurance.”

Plain English

Freddie Mac's version of a low down payment conventional loan. You can put down as little as 3% if your income is within the program limit for the area. It often has lower mortgage insurance than a regular conventional loan.

Conventional loans →

Real estate speak

“A contract condition making the buyer's purchase dependent on the sale or closing of the buyer's current home.”

Plain English

You only have to buy if your current home sells first. It helps buyers avoid owning two homes, but sellers often see it as risky, so it can make your offer weaker.

Real estate speak

“A federal rule letting owners exclude up to $250,000 of profit ($500,000 for married couples) on the sale of a main home owned and lived in for 2 of the last 5 years.”

Plain English

Many sellers owe no tax on their profit. Check your situation with a tax professional.

Real estate speak

“Preparing and furnishing a home to show it at its best to buyers.”

Plain English

Decluttering, light furniture and good photos help buyers picture themselves living there.

Real estate speak

“A service contract covering repair or replacement of specified home systems and appliances due to normal wear, subject to service fees and exclusions.”

Plain English

A yearly service plan that helps pay to fix things like the AC, water heater or appliances when they break from normal use. It is not homeowners insurance. Read what is excluded, and expect a service fee for each visit.

Mortgage speak

“A course covering budgeting, credit, the loan process and homeownership, often required for down payment assistance and some low down payment loans.”

Plain English

A class, often online and several hours long, that walks you through buying and owning a home. Many assistance programs require a certificate from an approved course before closing, so finish it early.

Real estate speak

“A policy covering damage to the home and the owner's liability.”

Plain English

Required by lenders. In Florida, hurricane coverage often has its own deductible, usually a percentage of the dwelling coverage. Get quotes early.

Mortgage speak

“A Fannie Mae conventional loan program for low-to-moderate income borrowers that allows a 3% down payment and reduced mortgage insurance coverage.”

Plain English

A conventional loan with as little as 3% down for buyers whose income is at or below a set share of the area median income. Mortgage insurance is usually cheaper than on a standard conventional loan, and the down payment can come from gifts or grants.

Good to know: Ask your loan officer to check your address and income against the program limits before you assume you qualify.

Conventional loans →

Real estate speak

“A Florida property tax exemption for a permanent residence, which also limits yearly increases in assessed value.”

Plain English

A tax break on the home you live in. It lowers your property taxes and limits how much they can rise each year. Apply with your county property appraiser by March 1 after you move in.

Real estate speak

“Transferring some or all of a Save Our Homes assessment benefit to a new Florida homestead.”

Plain English

Moving within Florida? You may be able to take some of your property tax savings with you. Apply when you file homestead on the new home.

Mortgage speak

“A Fannie Mae conventional mortgage that combines the purchase or refinance of a home with the cost of renovations in a single loan.”

Plain English

A conventional loan that includes money for repairs or upgrades. It can be used on a primary home, second home or investment property. Unlike FHA, it can pay for things like a pool or outdoor kitchen.

Real estate speak

“An owner-occupant strategy of living in part of a property while renting out other units or rooms to offset housing costs.”

Plain English

Buying a duplex, triplex or fourplex, living in one unit and renting the others. You can often use owner-occupied financing with a smaller down payment while tenants help pay the mortgage.

See FHA Loans →

Mortgage speak

“A state or local public agency that funds affordable housing programs, including first mortgages and down payment assistance for eligible buyers.”

Plain English

A government-backed agency that runs homebuyer help programs. In Florida, the statewide one is Florida Housing Finance Corporation. You apply through an approved lender, not the agency directly.

See Assistance Programs →

Mortgage speak

“The US Department of Housing and Urban Development, the federal agency that oversees housing programs, including the Federal Housing Administration and fair housing enforcement.”

Plain English

HUD is the federal housing department. FHA loans fall under it, and it sets many FHA rules. It also enforces fair housing laws and approves housing counseling agencies that can help buyers and homeowners.

FHA loans →

Real estate speak

“A separate homeowners insurance deductible for hurricane damage, usually a percentage of the dwelling coverage amount rather than a flat dollar amount.”

Plain English

The share you pay for hurricane damage before insurance pays. In Florida it is usually a percentage, such as 2 percent of your dwelling coverage, which can be thousands of dollars. It generally applies once per calendar year, not per storm.

Good to know: A higher hurricane deductible lowers premium but means more cash out of pocket after a storm.

Real estate speak

“One-time charges local governments impose on new development to help pay for public infrastructure such as roads, schools and parks.”

Plain English

Fees the county or city charges when a new home is built, to help pay for roads, schools and services. Builders usually include them in the price, but ask, especially if you build on your own lot.

Real estate speak

“Opening protection rated to resist windborne debris, either impact-rated glass and frames or approved shutters, panels or screens covering openings.”

Plain English

Ways to protect windows and doors from flying debris in a storm. Impact glass stays in place all the time, while shutters go up when a storm comes. Approved protection can lower your insurance through a wind mitigation inspection.

Mortgage speak

“Maximum household income allowed to qualify for certain loan or assistance programs, usually based on area median income and household size.”

Plain English

If you earn more than the program cap, you do not qualify. Some programs count income of everyone in the household, not just the borrowers. Ask your lender which income counts.

See Assistance Programs →

Mortgage speak

“Funds collected at closing to start the borrower's escrow account, sized so it can pay upcoming tax and insurance bills plus a permitted cushion.”

Plain English

At closing, you put some money into your new escrow account so it has enough when the next tax and insurance bills come due. The amount depends on your closing date and when those bills are paid. It is part of your cash to close.

Real estate speak

“A set number of days after the contract is signed for the buyer to inspect the property.”

Plain English

Your window to have the home checked by inspectors. Under Florida's widely used "AS IS" contract, the buyer can cancel for any reason during this period and get the deposit back.

Mortgage speak

“A loan repaid in fixed, scheduled payments over a set term, such as an auto loan, student loan or mortgage.”

Plain English

A loan with a set payment and an end date, like a car loan. The monthly payment counts in your debt-to-income ratio. Some lenders may leave out a loan with only a few payments left.

Real estate speak

“A temporary written confirmation from an insurer that coverage is in force pending issuance of the formal policy.”

Plain English

Proof from the insurance company that your policy is in place starting on closing day. Your lender needs it before closing. In Florida, get quotes early, because new policies usually cannot be bound once a storm is threatening the area.

Real estate speak

“A Florida tax of 0.2% on new mortgages.”

Plain English

On a $250,000 loan that's $500, paid by the buyer at closing.

Estimate my closing costs →

Mortgage speak

“A borrower's communication to a lender, after receiving the Loan Estimate, that they want to continue with the loan application.”

Plain English

After you get your Loan Estimate, you tell the lender you want to move forward. It can be a signature, an email or even a phone call. Until you do, the lender generally cannot charge fees other than a credit report fee.

Mortgage speak

“The yearly percentage a lender charges to borrow money.”

Plain English

The price of borrowing. Even a small difference in rate changes your monthly payment and the total you repay.

Mortgage speak

“A mortgage that permits payments of interest alone for a set initial period, after which payments increase to repay principal over the remaining term.”

Plain English

For the first several years you pay only the interest, so the payment is lower but your balance does not go down. When that period ends, the payment jumps because you start paying back the loan over fewer years. Mostly used by investors and higher-income buyers.

Mortgage speak

“Real estate purchased to generate rental income or profit rather than to serve as the owner's primary or second home.”

Plain English

A property you buy to rent or resell, not live in. Loans for these usually need a bigger down payment, more reserves and a higher rate than a home you live in.

Good to know: Never claim you will live in a home you plan to rent. Misstating occupancy on a loan is mortgage fraud.

See DSCR Loans →

Mortgage speak

“A mortgage on a property the borrower does not occupy and holds to generate rental income or appreciation.”

Plain English

A loan on a home you plan to rent out. Expect a larger down payment and a higher rate than on your own home. Lenders may count expected rent toward your income, and DSCR loans can qualify you on the rent alone.

DSCR loans →

Mortgage speak

“Selling unpaid customer invoices to a factoring company at a discount for immediate cash.”

Plain English

Gets you paid now instead of waiting 30 to 90 days, in exchange for a fee. Invoice financing is similar but borrows against the invoices instead of selling them.

Mortgage speak

“A mortgage for borrowers who do not have a Social Security number and instead file taxes using an Individual Taxpayer Identification Number.”

Plain English

A home loan for people who pay taxes with an ITIN instead of a Social Security number. These are usually specialty loans, so expect a larger down payment and higher rate than FHA or conventional. Income is often verified with tax returns or bank statements.

Real estate speak

“Co-ownership in which each owner holds an equal, undivided interest and a deceased owner's share passes automatically to the surviving owners.”

Plain English

Two or more people own the home together, and when one dies, the others get that share without probate. The deed must clearly say right of survivorship.

Mortgage speak

“A court ruling that a person owes money to a creditor, which may allow the creditor to place a lien on property or garnish wages.”

Plain English

A court has decided you owe a debt. Judgments no longer appear on the major credit reports, but they still show up in public records and title searches and usually must be paid before you can close.

Mortgage speak

“A loan larger than the conforming loan limit.”

Plain English

For bigger loan amounts (over $832,750 in most areas in 2026). It usually needs stronger credit and more savings.

Jumbo loans explained →

Real estate speak

“Florida's legal term for the market value of a property as determined by the county property appraiser as of January 1 each year.”

Plain English

The county's estimate of what your home was worth on January 1. It is the starting point for property taxes. It often differs from a lender's appraisal or the price a buyer would actually pay.

Real estate speak

“A provision allowing a seller who accepted a contingent offer to keep marketing the property and require the buyer to remove the contingency or release the contract if a better offer arrives.”

Plain English

Often paired with a home sale contingency. The seller keeps showing the home. If another good offer comes in, you get a short time to drop your contingency or step aside.

Real estate speak

“A deed, recognized in Florida, by which an owner keeps a life estate with full power to sell, mortgage or change the beneficiaries without their consent, and names who receives the property automatically at the owner's death.”

Plain English

You keep complete control of your home for life (you can still sell it, refinance it or change your mind), and when you die it passes straight to the people you named, without going through probate. Many Florida homeowners use one, and it generally keeps the homestead exemption in place.

Good to know: It's a legal document with tax and inheritance effects, so have an estate-planning attorney prepare it. Tell your lender if you plan to use one on a home with a mortgage.

Real estate speak

“A seller-financed sale in which the buyer makes installment payments and the seller keeps legal title until the contract is paid in full.”

Plain English

Also called contract for deed. You pay the seller over time and get the deed only after the last payment. Buyers face risks such as the seller's own liens or title problems, so get legal advice and a title search first.

Real estate speak

“A property insurance policy for rental homes covering the structure, landlord liability and often lost rental income.”

Plain English

Insurance for a home you rent out. A regular homeowners policy usually does not cover a rental. Tenants should carry their own renters policy for their belongings.

Real estate speak

“A contract granting a tenant the right to occupy a property for a set term in exchange for rent, under stated conditions.”

Plain English

The written rental agreement between landlord and tenant. It spells out rent, due dates, how long the tenant stays, deposits, pets, repairs and what happens if someone breaks the rules.

Real estate speak

“A lease agreement that gives the tenant the right, but not the obligation, to buy the property at a set price within a set period.”

Plain English

You rent a home with the option to buy it later at an agreed price. You usually pay an upfront option fee, and sometimes part of the rent counts toward the purchase. Fees are often lost if you do not buy.

Real estate speak

“An interest in real property held under a lease for a fixed term; the land (and sometimes the building) remains owned by the landlord, and rights end or revert when the lease expires.”

Plain English

You own the right to use the property for a set number of years, but someone else owns the land, and you usually pay ground rent. When the lease ends, the property goes back to the landowner unless the lease is renewed. It's uncommon for Florida homes but does happen, for example with some condos and mobile-home communities.

Good to know: Lenders only finance a leasehold if enough years are left on the lease, often at least five years beyond the end of the loan. Check the remaining term and the ground rent before you make an offer.

Mortgage speak

“Money a lender applies toward a borrower's closing costs, typically in exchange for the borrower accepting a higher interest rate.”

Plain English

The lender pays part of your closing costs, and in return you take a slightly higher rate. It means less cash at closing but a higher monthly payment. It is the opposite of paying discount points.

Good to know: If you plan to sell or refinance within a few years, a lender credit can make more sense than points.

Estimate closing costs →

Mortgage speak

“Funds a lender provides toward a borrower's closing costs in exchange for the borrower accepting an interest rate above par.”

Plain English

Money from the lender to help pay your closing costs. The trade-off is a higher interest rate for the life of the loan. It can make sense if you are short on cash or plan to sell or refinance within a few years.

Closing cost calculator →

Real estate speak

“A title insurance policy required by most mortgage lenders that protects the lender's lien interest up to the loan amount.”

Plain English

Your lender requires this, and the buyer usually pays for it. It protects the lender, not you. To protect yourself, you need an owner's policy.

Mortgage speak

“Private mortgage insurance paid by the lender and recovered through a higher interest rate on the loan rather than a separate monthly premium.”

Plain English

Instead of a separate mortgage insurance charge, the lender pays it and gives you a higher rate. Your payment may be lower at first. But the higher rate stays even after you build equity, and the only way out is to refinance or sell.

Mortgage speak

“A credit scoring factor measuring the age of the oldest account, the newest account and the average age of all accounts.”

Plain English

How long you have had credit. Older accounts help your score. Closing your oldest card can hurt over time, so it is often better to keep it open and use it lightly.

Mortgage speak

“A signed written statement from a borrower explaining an item in the loan file, such as a credit inquiry, employment gap, address discrepancy or unusual deposit.”

Plain English

When something in your file raises a question, the underwriter may ask you to explain it in writing. Keep it short, factual and signed. Attach any proof you have, like a letter or receipt.

Real estate speak

“A legal claim against a property for an unpaid debt.”

Plain English

Usually must be paid off at or before closing. The title search finds them.

Real estate speak

“An ownership interest that lasts for a person's lifetime, after which the property passes to a named remainderman.”

Plain English

Someone has the right to live in or use the home for the rest of their life, and then it goes to the person named. Selling or borrowing against it usually needs everyone with an interest to sign.

Good to know: Florida also allows an enhanced life estate deed, often called a Lady Bird deed. Ask an estate attorney if it fits your situation.

Real estate speak

“A sum agreed in advance in a contract as compensation if a party defaults, often the buyer's deposit in a real estate sale.”

Plain English

Many Florida contracts let the seller keep the deposit as liquidated damages if the buyer defaults. This often limits the buyer's money risk to the deposit, but the contract may give the seller other options too. Ask an attorney how your contract reads.

Real estate speak

“The asking price a seller sets when a property is offered for sale.”

Plain English

The price on the listing. It is a starting point, not the value. Homes can sell above or below it depending on condition, competition and the market.

Check a home's value →

Real estate speak

“The final sale price divided by the list price, expressed as a percentage, used to measure how close homes sell to asking price.”

Plain English

Shows how close homes are selling to their asking price. Above 100% means many sell over asking. Below means buyers have room to negotiate.

Real estate speak

“A contract between a seller and a brokerage to market and sell a property.”

Plain English

Sets the price, how long the listing lasts and how the agent is paid. Commissions are always negotiable.

Real estate speak

“Holding title to real property in the name of a revocable living trust, with the owner usually serving as trustee during their lifetime.”

Plain English

You put your home into a trust you control. You still live there and make all the decisions, and when you die your chosen successor takes over without probate. Many lenders will lend to a revocable living trust if it meets their rules, and in Florida the home can usually keep its homestead exemption.

Good to know: Tell your loan officer early if you want to buy in a trust: the lender will need to review the trust document. How you hold title affects who inherits the home, taxes, creditor protection and the Florida homestead exemption. Ask a real estate attorney or the title company before you decide; your Realtor and lender can't give legal advice.

Real estate speak

“Holding title to investment real estate in a limited liability company to separate the property from the owner's personal assets.”

Plain English

Owning a rental through a company instead of in your own name. It may limit personal liability, but many mortgages need a personal guarantee and some loans cannot close in an LLC.

Good to know: Check with an attorney and tax professional before setting one up or deeding property into it.

See DSCR Loans →

Mortgage speak

“The Uniform Residential Loan Application, Fannie Mae Form 1003 and Freddie Mac Form 65, is the standard form used to apply for most US home loans.”

Plain English

This is the main mortgage application. It lists your income, jobs, debts, assets and the home you want to buy. Almost every lender uses the same form, so the questions look familiar wherever you apply.

Good to know: Answer every question honestly and completely. Small gaps or surprises found later can slow down your approval.

Real estate speak

“The number of days after the effective date within which the buyer must obtain written loan approval or act under the financing contingency.”

Plain English

The window you have to get your loan approved. If approval is not in by the end, you must cancel, extend or move forward without the protection. Ask your loan officer if the timeline is realistic before you sign.

Mortgage speak

“A lender's written approval stating it will make a loan on stated terms, subject to any listed conditions being satisfied before closing.”

Plain English

This is a stronger approval than a pre-approval because the lender has reviewed your file and often the property. It may still have conditions. Many purchase contracts set a deadline to get loan approval, so watch that date.

Mortgage speak

“A standard three-page form showing the estimated rate, monthly payment and closing costs for a loan.”

Plain English

Your lender must send it within 3 business days of your application. Because every lender uses the same form, it's the easiest way to compare offers side by side.

Mortgage speak

“A permanent change to the terms of an existing loan.”

Plain English

Can lower the rate or extend the term to make payments affordable, so you can keep your home.

Mortgage speak

“The mortgage staff member who gathers documents, orders third-party reports and prepares the loan file for underwriting.”

Plain English

The processor keeps your file moving. They collect your documents, order the appraisal and title work, and chase down missing items. You will hear from them often between application and closing.

Mortgage speak

“The company that collects your payments and manages your escrow account.”

Plain English

The company you pay each month. It may change after closing; you'll get a letter if it does, and your loan terms stay the same.

Mortgage speak

“The sale or assignment of the right to collect payments and administer a mortgage from one servicer to another, with notice required under federal law.”

Plain English

The company that collects your payment can change. You should get notices from both the old and new company, generally 15 days before and after the change. For 60 days, an on-time payment sent to the old company should not be treated as late.

Good to know: Confirm any transfer by calling the number on a statement you already have. Scammers send fake transfer letters.

Mortgage speak

“The ratio of a loan amount to the total project cost, including purchase price and construction or renovation costs.”

Plain English

How much of the total project the lender will cover. If you buy for $200,000 and spend $50,000 on repairs, a 90% LTC loan covers $225,000 and you bring the rest.

Real estate speak

“A secure box attached to a property that holds the key and is opened by authorized agents, often electronically.”

Plain English

The box on the door that holds the house key so agents can show the home when the seller is away. Electronic ones record who entered and when.

Mortgage speak

“A loan used to purchase vacant land, typically with a larger down payment, higher rate and shorter term than a home mortgage.”

Plain English

A loan to buy land you plan to build on later. Lenders see land as riskier than a house, so expect a bigger down payment and a higher rate. Some lenders let you roll the lot into a construction loan later.

Real estate speak

“An additional charge a builder adds to the base price for a homesite with desirable features such as size, view or location.”

Plain English

Extra money for a better lot, like one on a pond, a corner, a cul-de-sac or with no rear neighbors. It adds to the price, so make sure it will add value when you sell.

Mortgage speak

“The loan amount divided by the home's appraised value or price, whichever is lower.”

Plain English

How much you're borrowing compared with what the home is worth. Putting 20% down means an 80% LTV.

Real estate speak

“A factory-built home constructed on a permanent steel chassis to the federal HUD Code; units built before June 15, 1976 are generally called mobile homes.”

Plain English

A home built in a factory to a federal standard and moved to the site on its own frame. Older units built before mid-1976 are called mobile homes and are very hard to finance. Newer ones on a permanent foundation, with land, can often get a mortgage.

Good to know: Lenders usually want the home titled as real property, not as a vehicle, before they will lend.

Mortgage speak

“Mortgage financing for a factory-built home constructed to the federal HUD code, typically requiring a permanent foundation and titling as real property.”

Plain English

A mortgage for a factory-built home. To get FHA, VA, USDA or conventional financing, the home usually must sit on a permanent foundation on land you own and be titled as real estate. Homes built before mid-1976 generally do not qualify.

Good to know: Get the foundation certification and title status checked early. These are the most common deal killers.

Real estate speak

“An insurance policy purchased by a condominium or homeowners association covering common elements, the building structure and association liability.”

Plain English

The association's insurance on the building and shared areas, paid through your dues. What it covers inside your unit varies, so read it to know what your own policy must handle. Lenders review it during condo loan approval.

Mortgage speak

“An advance of cash repaid from a percentage of a business's future card or daily sales.”

Plain English

Fast and easy to get, but often very expensive once you work out the real yearly cost. Compare carefully before signing.

Mortgage speak

“The median of a borrower's three bureau credit scores, commonly used by mortgage lenders as the qualifying score.”

Plain English

When a lender gets three scores, it usually throws out the highest and lowest and uses the one in the middle. With two borrowers, many lenders use the lower of the two middle scores.

Good to know: If one bureau is much lower than the others, check that report for errors.

Real estate speak

“Required structural inspections for Florida condominium buildings three stories or taller as they age.”

Plain English

Along with a structural integrity reserve study, these can lead to large special assessments. Buyers should review them before buying a condo.

Real estate speak

“The property tax rate expressed in mills, where one mill equals one dollar of tax per 1,000 dollars of taxable value.”

Plain English

The rate local governments use to set your property tax. Multiply your taxable value by the millage and divide by 1,000. Rates vary by city, county and special districts, so two similar homes nearby can have different tax bills.

Mortgage speak

“The smallest amount a borrower must pay on a credit account by the due date to keep it in good standing.”

Plain English

The least you must pay each month to avoid a late mark. Mortgage lenders use this amount, not your full balance, when figuring your debt-to-income ratio. Paying only the minimum costs a lot in interest.

Check Your DTI →

Mortgage speak

“Mortgage insurance on FHA loans: an upfront premium plus an annual premium paid monthly.”

Plain English

FHA's version of mortgage insurance: 1.75% added to the loan at closing, plus a monthly charge (0.50% to 0.55% a year for most loans).

Real estate speak

“A database where brokers share property listings.”

Plain English

The main source of homes for sale. Many home search websites get their data from it.

Search homes for sale →

Real estate speak

“A furnished, decorated sample home a builder uses to display a floor plan and finishes to prospective buyers.”

Plain English

The show home in a new community. It usually has many paid upgrades, so ask what is standard and what costs extra. Builders sometimes sell models later, often with furniture deals.

Real estate speak

“A home built in factory sections to state and local building codes, then transported and assembled on a permanent foundation at the site.”

Plain English

Built in pieces in a factory, then put together on your lot. Unlike a manufactured home, it must meet the same local building codes as a site-built house. Once finished, lenders and appraisers usually treat it like any other house.

Real estate speak

“An assessment, sometimes with air or surface sampling, to identify visible or hidden mold growth and the moisture sources causing it.”

Plain English

A check for mold and the water problems that cause it. In humid Florida it is worth it if you see stains, smell mustiness, or know of past leaks. Fixing the moisture source matters more than just cleaning the mold.

Mortgage speak

“The document that pledges a property as security for a loan.”

Plain English

It lets the lender take the home through foreclosure if the loan isn't repaid. It's recorded with the county.

Mortgage speak

“A licensed company or loan originator that takes mortgage applications and arranges loans through multiple wholesale lenders rather than funding loans itself.”

Plain English

A broker shops your loan with several lenders to find a good fit and price. The lender that wins makes the actual loan and underwrites it. Brokers are paid by either the borrower or the lender, and it is disclosed on your forms.

Mortgage speak

“A certificate issued by a housing agency that lets qualifying buyers claim a federal tax credit for a portion of their annual mortgage interest.”

Plain English

A tax credit, not just a deduction, for part of the mortgage interest you pay each year, for as long as you keep that loan and live in the home. Availability varies by area. Check with a tax professional on how it fits your return.

Mortgage speak

“A federal income tax deduction for interest paid on qualifying home loans, available to taxpayers who itemize, subject to loan amount limits.”

Plain English

You may be able to deduct mortgage interest on your federal taxes, but only if you itemize. Many people take the standard deduction instead and get no extra benefit. Check with a tax professional.

Mortgage speak

“A licensed professional who takes mortgage applications and helps borrowers choose a loan.”

Plain English

Your loan guide from application to closing. Always check their license at NMLS Consumer Access.

Mortgage speak

“A re-amortization of an existing loan after a large principal payment, lowering the monthly payment while keeping the same rate and maturity date.”

Plain English

You pay a big lump sum toward your loan, and the lender recalculates your payment based on the lower balance. Your rate and payoff date stay the same. It costs far less than a refinance, but FHA and VA loans usually cannot be recast.

Payoff plan calculator →

Mortgage speak

“Investment securities backed by pools of home loans, paying investors from the principal and interest borrowers pay each month.”

Plain English

Many mortgages are bundled together and sold to investors as bonds. What investors will pay for these bonds has a big effect on mortgage rates. That is why rates can change daily even when nothing seems to happen.

Real estate speak

“A residential building containing two to four separate dwelling units, such as a duplex, triplex or fourplex, eligible for residential mortgage financing.”

Plain English

A building with two, three or four separate homes, like a duplex. If you live in one unit, you can often use a regular home loan, including FHA or VA, and use rent from the other units to help qualify. Five or more units needs commercial financing.

FHA loan options →

Real estate speak

“A situation in which a seller receives more than one offer on a property at or near the same time.”

Plain English

More than one buyer wants the same home. Price matters, but so do deposit size, closing date, financing strength and how many conditions you include. A strong pre-approval letter helps.

Check your budget first →

Mortgage speak

“An increase in the loan balance that occurs when scheduled payments are less than the interest due, with the unpaid interest added to principal.”

Plain English

Your loan balance goes up even though you are making payments, because the payment does not cover all the interest. This feature is not allowed on qualified mortgages and is rare today, but it still shows up in some specialty loans.

Real estate speak

“A property's annual income minus its operating expenses, calculated before mortgage payments, income taxes and depreciation.”

Plain English

The yearly profit a property makes from rent after normal costs like taxes, insurance, repairs and management, but before any loan payment. It lets you compare properties no matter how they are financed.

Mortgage speak

“A credit scoring factor that considers recently opened accounts and recent hard inquiries.”

Plain English

Opening several new accounts in a short time can lower your score. Before and during a mortgage, avoid new cards, car loans or store financing until after closing.

Good to know: Even a 0 percent furniture deal can change your debt-to-income ratio. Wait until after you close.

Real estate speak

“The National Flood Insurance Program is the federal flood insurance program run by FEMA; private flood policies are offered by insurance companies outside it.”

Plain English

Regular homeowners policies do not cover flooding. You can buy flood insurance through the federal program or from a private company. Compare coverage limits, waiting periods and whether the policy can be transferred. Lenders require it in high-risk flood zones.

Good to know: Flood policies usually have a waiting period before they start, except in some cases when bought with a new loan.

Mortgage speak

“A unique number from the Nationwide Multistate Licensing System for each licensed loan originator and company.”

Plain English

A quick way to check that a loan officer is licensed. Bill's NMLS ID is #2176490.

Real estate speak

“A Florida arrangement in which a licensee does not represent a party but must still deal honestly, account for funds and disclose known facts materially affecting residential property value.”

Plain English

The agent is not working for you. They must be honest and share known problems that affect the home's value and are not easy to see, but they will not advise or negotiate for you.

Mortgage speak

“A mortgage that does not meet the federal Qualified Mortgage standards, often using alternative income documentation or features outside standard agency guidelines.”

Plain English

A loan for people who do not fit the usual boxes, such as self-employed borrowers, investors or people with recent credit events. Income may be proven with bank statements or rental income instead of tax returns. Rates and down payments are usually higher.

Bank statement loans →

Mortgage speak

“Alternative payment records, such as rent, utilities, insurance and phone bills, used to evaluate borrowers with little or no credit history.”

Plain English

If you have no credit score, some loan programs let you prove you pay bills on time with rent, utility, phone or insurance records instead. Expect more paperwork and stricter rules.

Mortgage speak

“A condominium project that does not meet agency eligibility standards and therefore cannot be financed with a conventional conforming loan.”

Plain English

A condo that fails Fannie Mae or Freddie Mac rules, for reasons like low reserves, pending lawsuits, short-term rentals or needed repairs. Buyers need cash or a specialty loan, often with a bigger down payment and higher rate. That can also make it harder to sell.

Real estate speak

“A state-commissioned official who verifies signers' identities and witnesses signatures on documents such as deeds and mortgages.”

Plain English

A notary checks your ID and watches you sign key documents so they can be recorded. They do not give legal advice. At most closings, the closer or a hired notary handles this for you.

Real estate speak

“A written proposal from a buyer to purchase a property at a stated price and on stated terms, which becomes binding only when accepted by the seller.”

Plain English

Your written bid on a home. It lists the price, deposit, closing date, how you will pay and any conditions. Nothing is final until the seller signs it, or you both agree on a counteroffer.

Real estate speak

“A scheduled period when a listed property is open for prospective buyers to tour without an individual appointment.”

Plain English

A set time when anyone can walk through a home for sale. Sellers should lock away valuables and medications. Buyers can look freely, but have your own agent before you make an offer.

Real estate speak

“A building permit that was issued but never closed out with a final inspection, or that expired before completion.”

Plain English

A permit that was pulled for work but never finished or never got its final inspection. Open or expired permits can follow the property to the new owner and delay closing. A permit search before closing can find them.

Good to know: Ask your title company or the local building department to run a permit search early.

Real estate speak

“The recurring costs of running an income property, such as taxes, insurance, maintenance, management and utilities, excluding debt service and capital improvements.”

Plain English

The everyday costs of owning a rental: property taxes, insurance, HOA dues, repairs, lawn care, management and any utilities you pay. The mortgage payment is not included here.

Mortgage speak

“A lender's charge for processing and making a loan.”

Plain English

Part of your closing costs. It's on page 2 of your Loan Estimate, so you can compare lenders.

Real estate speak

“A title insurance policy protecting the buyer's ownership interest against covered title defects that existed before purchase.”

Plain English

Protects you, the owner, if a covered problem with ownership from before you bought shows up later. You pay once at closing. In Florida, who pays for it is negotiable and the custom differs by county.

Estimate closing costs →

Mortgage speak

“The interest rate at which a loan is priced with neither discount points charged nor lender credits paid to the borrower.”

Plain English

The rate you get without paying points to buy it down or taking a credit to raise it. It is a useful baseline when comparing lenders. Ask each lender for their par rate on the same day so you are comparing apples to apples.

Mortgage speak

“The record of whether a borrower has paid credit accounts on time; the most heavily weighted factor in FICO scoring, about 35 percent.”

Plain English

Whether you pay your bills on time. It matters more than anything else in your score. A payment 30 or more days late can drop your score noticeably and stays on your report for up to seven years.

Good to know: Set up automatic minimum payments so a busy month never turns into a late payment.

Mortgage speak

“A written statement from a loan servicer showing the exact amount required to pay a loan in full as of a specific date, including interest and fees.”

Plain English

This shows exactly how much it takes to pay off your loan on a certain date. It is different from the balance on your monthly statement because it adds daily interest and any fees. The title company orders it when you sell or refinance.

Mortgage speak

“The lender's review of recent pay stubs and W-2 forms to document and calculate a salaried or hourly borrower's qualifying income.”

Plain English

For most wage earners, the lender asks for your most recent pay stubs and your W-2s, often for the last two years. They use them to figure your income and confirm your job. Expect a phone call to your employer before closing too.

Good to know: Send full pay stubs that show your name, the employer, the pay period and year-to-date totals.

Mortgage speak

“Daily interest charged from the closing or funding date through the end of that month, typically collected as a prepaid item at closing.”

Plain English

Mortgage interest is paid after the fact, so at closing you prepay interest for the rest of that month. Closing later in the month means fewer days to prepay. It does not save money overall, it only shifts when you pay.

Mortgage speak

“A summary of an owner's personal assets, debts and income, such as SBA Form 413.”

Plain English

Business lenders ask each main owner for one to see their overall financial strength.

Mortgage speak

“A promise by an owner to repay a business loan personally if the business cannot.”

Plain English

Most small business loans require one. SBA loans require a guarantee from anyone owning 20% or more of the business.

Real estate speak

“A builder's offering of a set group of lots or homes for sale at a stated price level within a larger community.”

Plain English

Builders sell a community in stages. Each new phase often comes with higher prices than the last, so early phases can be cheaper but may sit near ongoing construction for a while.

Mortgage speak

“A financing structure that pairs a first mortgage with a simultaneous second mortgage, commonly 80% first, 10% second and 10% down, to avoid mortgage insurance or jumbo limits.”

Plain English

Two loans taken at the same time. The first covers 80% of the price, a second covers another 10%, and you put 10% down. This can avoid mortgage insurance or keep the first loan under the jumbo limit. Compare total costs, since the second loan usually has a higher rate.

Mortgage speak

“Principal, interest, taxes and insurance.”

Plain English

The four main parts of a monthly house payment. HOA dues and mortgage insurance can come on top.

Work out my full payment →

Real estate speak

“A recorded map dividing land into lots, streets and easements within a subdivision, approved by the local government.”

Plain English

The official map of a subdivision filed with the county. It shows each lot, the streets and easements. Your legal description often refers to a lot and block on a recorded plat.

Mortgage speak

“Insurance required on most conventional loans with less than 20% down.”

Plain English

Insurance that protects the lender, not you, when you put less than 20% down. On a conventional loan it can usually be removed once you reach 20% equity.

See it in my payment →

Real estate speak

“A property offered for sale privately by a listing broker without being submitted to the MLS.”

Plain English

A home for sale that is kept off the MLS and shared only with a small group. It offers privacy, but fewer buyers see it, which can mean a lower price.

Mortgage speak

“A mortgage that a lender keeps on its own books rather than selling to Fannie Mae, Freddie Mac or other investors, allowing it to set its own guidelines.”

Plain English

A loan a bank or credit union keeps instead of selling it. Because it does not have to follow Fannie Mae or Freddie Mac rules, the lender can be more flexible on unusual properties or borrowers. Rates and terms vary a lot from lender to lender.

Real estate speak

“A legal document authorizing one person to sign and act on behalf of another in specified matters, such as a real estate closing.”

Plain English

Lets someone sign closing papers for you if you cannot be there. Lenders and title companies have strict rules about it, so get their approval of the document well before closing.

Mortgage speak

“A preliminary review of your credit, income and assets to determine how much you may qualify to borrow.”

Plain English

A pre-approval shows the price range you may qualify for and tells sellers you're a serious buyer. It's not a final approval, but it gives you a strong starting point.

Good to know: Getting pre-approved takes four steps: complete the application, send your documents (income, assets, ID), we review your numbers and credit, then you get your pre-approval letter. Many pre-approvals can be completed the same day, depending on how quickly documents come in.

Start my pre-approval →

Real estate speak

“The purchase of a new home or condominium before construction begins, typically from plans, at an initial release price.”

Plain English

Buying a home before it is built, choosing from plans and samples. You may get early pricing and your pick of lots, but you wait months and rates or your finances can change before closing.

Mortgage speak

“An informal estimate of how much you might borrow, based on what you tell the lender.”

Plain English

A quick first look. A pre-approval is stronger because the lender checks your credit and documents.

Mortgage speak

“Costs collected at closing in advance of their due dates.”

Plain English

Bills paid ahead at closing, usually a year of homeowners insurance, some mortgage interest, and a starting balance for your escrow account.

Mortgage speak

“A fee for paying off a loan early.”

Plain English

Rare on regular home loans today, but some investor loans have them. Always ask before you sign.

Real estate speak

“A lowering of a listed property's asking price after it has been on the market.”

Plain English

The seller dropped the price, often because showings or offers were slow. For buyers, it can signal room to negotiate. For sellers, one well-timed cut usually works better than several small ones.

See your net proceeds →

Mortgage speak

“The amount borrowed, or the part of the loan balance still owed, not counting interest.”

Plain English

The actual loan money. Every extra dollar you pay toward principal saves you interest for the rest of the loan.

Mortgage speak

“Financing provided by an individual or private group rather than an institutional lender, secured by real estate on negotiated terms.”

Plain English

Borrowing from a person, like a friend, relative or private investor, instead of a bank. Terms are whatever you agree on. Put it in writing with a recorded mortgage to protect everyone.

Real estate speak

“The sale of real property owned by a deceased person, carried out by the estate's personal representative and in some cases subject to court approval.”

Plain English

Selling a home that belonged to someone who passed away. The personal representative of the estate signs, and the court may need to approve. Expect extra paperwork and possible delays.

Real estate speak

“A builder that constructs large numbers of homes from a set of standard floor plans, typically within planned communities.”

Plain English

A large builder that builds many homes from a menu of floor plans in a community. Prices are often lower and the process is predictable, but changes to the plan are limited.

Browse New Construction →

Mortgage speak

“The signed promise to repay the loan, stating the amount, rate and terms.”

Plain English

Your IOU to the lender. The mortgage document is what secures it with the home.

Real estate speak

“The elected county official in Florida responsible for determining the value of all property for tax purposes and administering exemptions.”

Plain English

The county office that sets property values for taxes and handles exemptions like homestead. Its website shows ownership, tax values, square footage and sales history. It does not set the tax rate or collect the tax.

Real estate speak

“The operation and oversight of rental real estate by an owner or a hired manager, including leasing, rent collection, maintenance and tenant relations.”

Plain English

Running the rental day to day: finding tenants, collecting rent, handling repairs and dealing with problems. Many owners hire a company and pay a percentage of the rent plus leasing fees.

Good to know: In Florida, a company managing rentals for others for a fee generally needs a real estate license. Ask to see it.

Mortgage speak

“A federal itemized deduction for real estate taxes paid on a home, subject to the state and local tax deduction cap.”

Plain English

Property taxes you pay may be deductible on your federal return if you itemize. They share a yearly cap with other state and local taxes. Check with a tax professional for your situation.

Mortgage speak

“A privately offered reverse mortgage not insured by FHA, often used for higher-value homes that exceed HECM lending limits.”

Plain English

A reverse mortgage from a private lender instead of the FHA program. It is mostly used for higher-priced homes, since it can allow more money than the FHA limit. Some also accept condos that are not FHA approved. Rules and costs vary by lender.

Reverse mortgages →

Real estate speak

“Dividing costs such as property taxes between buyer and seller by the closing date.”

Plain English

Florida property taxes are paid at the end of the year, so the seller credits the buyer for the days the seller owned the home.

See it in the seller net calculator →

Real estate speak

“A list of incomplete or defective items identified near the end of construction that the builder must correct before or after closing.”

Plain English

Your walk-through of a new home before closing, marking scratches, paint touch-ups and anything unfinished, often with blue tape. The builder fixes the list. Many buyers also hire their own inspector first.

Real estate speak

“A legally binding contract between buyer and seller setting out the price, terms, deadlines and obligations for the sale of real property.”

Plain English

The signed contract for buying a home. In Florida it is usually just called the contract. It controls everything that happens until closing, so read every deadline and blank before you sign.

Mortgage speak

“The maximum home price allowed under a housing program, typically set by county.”

Plain English

Many assistance programs only work on homes below a certain price in your county. Know the cap before you start looking so you do not fall for a home the program will not cover.

Mortgage speak

“A category of mortgage that meets federal standards limiting risky features and certain fees, giving lenders legal protection under the ability-to-repay rule.”

Plain English

Most standard home loans are qualified mortgages. They avoid risky features like interest-only payments, loan balances that grow, or terms longer than 30 years. Loans that fall outside these rules, called non-QM, are legal but follow different guidelines.

Mortgage speak

“An independent review of a business's reported earnings, used when the business is being bought.”

Plain English

Checks that the profits a seller claims are real and repeatable. Expected for larger SBA business purchases.

Real estate speak

“A completed or nearly completed new home in a builder's inventory that is available for purchase and closing on a short timeline.”

Plain English

Also called an inventory home. It is already built or almost done, so you can close in weeks instead of months. Builders often offer incentives on these.

Browse New Construction →

Real estate speak

“A lawsuit asking a court to establish clear ownership of property and remove competing claims or clouds on title.”

Plain English

A court case used to settle who really owns a property when records are unclear or someone has a claim. It can take months, so it often delays or stops a sale. An attorney handles it.

Real estate speak

“A naturally occurring radioactive gas from soil and rock that can accumulate in buildings; Florida requires a radon disclosure in real estate contracts.”

Plain English

An invisible, odorless gas from the ground that can build up indoors and is linked to lung cancer over long exposure. Florida contracts include a standard radon notice. A simple test tells you the level, and fixes are usually affordable.

Mortgage speak

“A lender-requested service that updates credit bureau data within days after a borrower pays down debt or corrects an error, producing new scores.”

Plain English

A quick way to get your updated score reflected during the loan process, like after paying down a card. Only your lender can order it. You cannot buy it yourself.

Credit Score Helper →

Mortgage speak

“Paying money up front, often by the seller or builder, to lower the rate for the first years or the whole loan.”

Plain English

A 2-1 buydown lowers your rate by 2% in year one and 1% in year two, then the full rate applies. Builders often offer them.

Mortgage speak

“A lender's commitment to hold a specific interest rate for a set period.”

Plain English

Your rate is frozen for a set number of days (often 30 to 60) so it can't go up before closing, as long as you close in time.

Mortgage speak

“An extension of a rate lock period beyond its original expiration date, often for a fee or a small price adjustment.”

Plain English

If your closing gets delayed past the date your rate lock ends, the lender can usually extend it. Extensions often cost money, either as a fee or a slightly worse price. Who pays depends on why the delay happened.

Mortgage speak

“A lender's pricing table, updated at least daily, showing available interest rates and the corresponding points or credits for each loan product and lock period.”

Plain English

The daily price list a loan officer uses to quote your rate. It shows each rate and what it costs or pays in points. Prices can change during the day when markets move, which is why a quote is not final until you lock.

Mortgage speak

“A scoring rule that treats multiple mortgage inquiries within a short period, typically 14 to 45 days depending on the model, as a single inquiry.”

Plain English

You can compare several mortgage lenders without being punished for each credit pull, as long as you do it within a short time frame. Shop within a couple of weeks to be safe.

Mortgage speak

“A refinance that changes the interest rate, loan term or both without providing the borrower significant cash back beyond limited closing cost allowances.”

Plain English

A refinance to get a better rate, a shorter term, or switch from adjustable to fixed, without pulling cash out. Because you are not taking equity out, pricing and approval rules are usually easier than a cash-out refinance.

Mortgage options →

Real estate speak

“The fee paid to brokerages for helping sell or buy a property.”

Plain English

Not set by law and always negotiable. How the buyer's agent is paid is agreed separately in writing.

Real estate speak

“A registered trademark identifying a real estate professional who is a member of the National Association of Realtors and subscribes to its Code of Ethics.”

Plain English

Not every agent is a Realtor. The title means the agent belongs to the National Association of Realtors and agrees to follow its Code of Ethics.

Mortgage speak

“A federal tax that may apply when a home financed with a mortgage revenue bond or mortgage credit certificate is sold within nine years at a gain and the owner's income has risen above set limits.”

Plain English

A possible payback of part of the benefit from certain bond-funded loans or credit certificates if you sell early. All the conditions must apply, so many owners never owe it. Check with a tax professional.

Real estate speak

“Filing a deed, mortgage or other document with the county public records office to give public notice of an ownership interest or lien.”

Plain English

After closing, the new deed and mortgage are filed with the county. That makes your ownership and the lender's lien part of the public record. In Florida this is done with the Clerk of the Circuit Court in the county where the home sits.

Mortgage speak

“Replacing your current mortgage with a new one.”

Plain English

Usually done to lower your rate or payment, change the term, or remove mortgage insurance. Compare the closing costs with the monthly savings to find your break-even point.

Real estate speak

“Notarization performed over live audio-video technology, with identity verified electronically, where permitted by state law.”

Plain English

You can sign and have documents notarized over a video call instead of in person. Florida allows it, which helps out-of-town buyers and sellers. Not every lender or loan type accepts it, so ask early.

Mortgage speak

“Cancelling private mortgage insurance on a conventional loan.”

Plain English

Ask your servicer once you reach 20% equity; it ends automatically at 22% on the original schedule. Rising home values can get you there sooner.

Mortgage speak

“The practice of reporting a tenant's rent payments to one or more credit bureaus to establish or strengthen credit history.”

Plain English

Getting credit for paying rent on time. Some landlords and services report it to the bureaus. Some mortgage programs can also count a record of on-time rent from your bank statements.

Real estate speak

“A list of a property's units showing each tenant, lease dates, rent amount, deposits and payment status.”

Plain English

A summary sheet of who lives in each unit, what they pay and when their lease ends. Buyers and lenders ask for it when you buy or refinance a rental with tenants.

Good to know: Verify the rent roll against signed leases and bank deposits before you buy.

Real estate speak

“An agreement allowing the seller to remain in the property for a period after closing, usually for rent or a fee, under a written occupancy agreement.”

Plain English

The seller stays in the home for a short time after it closes. Put it in writing with move-out date, rent, deposit and who covers damage. Buyers should check insurance and any lender occupancy rules.

Mortgage speak

“Income from leased property that a lender may count toward a borrower's qualifying income, usually after a vacancy and expense factor.”

Plain English

Rent you receive can help you qualify for a loan. Lenders usually count only part of it, often 75%, to allow for vacancies and costs. They may use leases, tax returns or an appraiser's rent estimate.

Check Your DTI →

Real estate speak

“Real estate owned by a lender after an unsuccessful foreclosure auction.”

Plain English

A home the bank took back through foreclosure and now sells itself. Usually sold as is, with bank addenda that favor the seller. Always get an inspection and a title policy.

Real estate speak

“An insurance valuation method that pays to repair or replace damaged property with materials of like kind and quality, without deduction for depreciation.”

Plain English

Your policy pays what it costs today to rebuild or replace what was damaged, not what the old item was worth. This is the better coverage. Make sure your dwelling limit is high enough to actually rebuild your home.

Mortgage speak

“Savings left over after closing, measured in months of house payments.”

Plain English

A cushion lenders like to see. Some loans require two or more months of payments in reserve.

Real estate speak

“A measure of profitability equal to the gain from an investment divided by its cost, usually shown as a percentage.”

Plain English

How much you made compared to what you put in. For real estate it can include cash flow, loan paydown and appreciation. Always ask what is included, since people calculate it different ways.

Mortgage speak

“A loan for homeowners 62 and older that converts home equity into cash, with no required monthly mortgage payment.”

Plain English

You keep the title and live in the home. You must still pay property taxes, insurance and upkeep. The loan is repaid when you sell, move out or pass away. Counseling is required first.

Reverse mortgages explained →

Mortgage speak

“Credit with a limit that can be borrowed, repaid and borrowed again, such as credit cards and lines of credit.”

Plain English

Credit you can keep using, like a credit card. Your balance compared to your limit has a big effect on your score. Lenders count the minimum payment in your debt-to-income ratio.

Mortgage speak

“A federal right allowing a borrower to cancel certain refinance or home equity loans on a primary residence within three business days after closing.”

Plain English

On most refinances and home equity loans on the home you live in, you get three business days after signing to change your mind. The money is not released until that period ends. It does not apply to purchase loans.

Real estate speak

“A written statement from a licensed roofer or inspector estimating a roof's condition and remaining useful life, often required by insurers.”

Plain English

A roofer or inspector puts in writing how much life the roof has left. In Florida, roof age and condition can decide whether you can get insurance and at what price. Older roofs often need this letter, or a 4-point inspection, before a policy is written.

Good to know: Get the roof's age and permit date early in your inspection period.

Real estate speak

“Florida's term for a real estate licensee who must work under the supervision of a licensed broker.”

Plain English

What most people call a real estate agent. In Florida, a sales associate cannot work independently and must be registered with a broker.

Mortgage speak

“The federal limit on the itemized deduction for combined state and local income, sales and property taxes.”

Plain English

A ceiling on how much state and local tax, including property tax, you can deduct on your federal return. Congress has changed the limit in recent years, and it can shrink at higher incomes. Check with a tax professional.

Mortgage speak

“A document from the lender confirming a mortgage has been paid in full, which is recorded to release the lien from the property's title.”

Plain English

Once your loan is paid off, the lender signs this and it gets recorded with the county. It proves the lender no longer has a claim on your home. State law sets a deadline for the lender to handle it.

Good to know: A few months after payoff, check your county records to make sure it was recorded.

Real estate speak

“A Florida constitutional provision limiting annual increases in the assessed value of homestead property to 3 percent or the change in CPI, whichever is lower.”

Plain English

For Florida homesteaded homes, the assessed value can only rise a small amount each year, no matter how fast prices climb. When the home sells, the value resets for the buyer. That is why a seller's tax bill is often much lower than yours will be.

Good to know: Estimate taxes from the price you are paying, not the seller's current bill.

Mortgage speak

“Long-term, fixed-rate SBA financing for owner-occupied commercial real estate and major equipment, provided with a bank and a Certified Development Company.”

Plain English

Often about 50% from a bank, 40% from a CDC and around 10% from you. Good for buying or building your own premises.

Mortgage speak

“The Small Business Administration's main loan program, partly guaranteed by the SBA, for amounts up to $5 million.”

Plain English

A flexible business loan for working capital, equipment, buying a business or owner-occupied property. The SBA guarantee lets lenders offer longer terms than a typical bank loan.

SBA loans explained →

Mortgage speak

“Limits on revenue or number of employees, set by industry, that define a small business for SBA programs.”

Plain English

Your business must count as "small" for its industry to get an SBA loan. Most small businesses easily qualify.

Mortgage speak

“A mortgage on a one-unit property the borrower occupies for part of the year in addition to a primary residence, and which is not primarily used as a rental.”

Plain English

A loan for a vacation or part-time home you use yourself. Rates and down payments are usually better than for an investment property. You cannot rent it out full time or have it run by a management company that controls when you use it.

Mortgage speak

“Any loan secured by a property that is subordinate in lien priority to the first mortgage.”

Plain English

A loan on your home that ranks behind your main mortgage. If the home is sold or foreclosed, the first mortgage gets paid before the second. Home equity loans, HELOCs and many down payment assistance loans are second mortgages.

Mortgage speak

“The market in which existing mortgages and mortgage-backed securities are bought and sold among lenders, government-sponsored enterprises and investors.”

Plain English

Most lenders sell their loans after closing. That frees up cash so they can lend to the next buyer. Selling your loan does not change your rate, payment or terms.

Mortgage speak

“A credit card backed by a cash deposit that usually sets the credit limit, used to build or rebuild credit.”

Plain English

A card where you put down a deposit, often a few hundred dollars, and that becomes your limit. Use it for small purchases and pay it in full each month to build credit.

Real estate speak

“Money a tenant pays a landlord at the start of a lease to secure performance, refundable less lawful deductions for unpaid rent or damage.”

Plain English

Money held by the landlord in case of damage or unpaid rent. Florida law sets rules on how it is held, deadlines to return it, and written notice if the landlord keeps any of it.

Good to know: Landlords should follow the Florida landlord-tenant statute closely. Check with an attorney if you are unsure.

Real estate speak

“Costs the seller agrees to pay on the buyer's behalf, usually toward closing costs.”

Plain English

Money the seller puts toward your closing costs so you bring less cash to closing. Loan types limit how much is allowed (FHA allows up to 6% of the price).

Mortgage speak

“An arrangement in which the seller extends credit to the buyer for part or all of the purchase price, secured by a note and mortgage.”

Plain English

The seller acts as the bank. You pay the seller over time instead of getting a full loan. It can help when bank financing is hard, but rules apply, so both sides should use an attorney.

Good to know: If the seller still has a mortgage, a due-on-sale clause may let their lender call the loan.

Real estate speak

“A statement of known facts about a property's condition.”

Plain English

In Florida, sellers must disclose known defects that materially affect the value and that a buyer can't easily see, even in an AS IS sale.

Real estate speak

“A new home built from a builder's base plan that allows the buyer to make selected structural and design changes.”

Plain English

A middle ground. You start with the builder's plan but can change some things, like adding a room or moving walls, plus choose your finishes.

Real estate speak

“The minimum required distance between a structure and a property line, street or other feature, as set by zoning codes or deed restrictions.”

Plain English

How far from the property lines you are allowed to build. Setbacks limit where you can put a pool, addition, shed or fence. Check them before you buy a lot or plan a project.

Real estate speak

“The person or company, often a title agency or attorney, that conducts the closing, prepares settlement figures, collects signatures and disburses funds.”

Plain English

This is who runs your closing. They collect the money, make sure everyone signs the right papers, pay off old loans and send funds where they belong. In Florida this is usually a title company or a real estate attorney.

Good to know: Always call the settlement agent at a number you already trust before wiring money. Never use wiring instructions from an email alone.

Real estate speak

“An itemized accounting of all funds, charges and credits for buyer and seller at closing, often prepared on the ALTA form.”

Plain English

The closing math sheet. It lists the price, fees, taxes, credits and exactly what each side pays or receives. Compare it with your Closing Disclosure if you have a loan and ask about anything unclear.

Real estate speak

“A sale of a property for less than the amount owed on the mortgage, with the lender's approval to accept the reduced payoff.”

Plain English

You sell the home for less than you owe, and the lender agrees to take less. It hurts credit less than a foreclosure in many cases, but it takes longer and the lender must sign off.

Good to know: Ask a tax professional whether any forgiven debt could be taxable.

Real estate speak

“A furnished property rented to guests for short stays, typically under 30 days, often through online platforms.”

Plain English

Renting a home by the night or week, like on Airbnb or Vrbo. In Florida, many need a state license and must collect sales and tourist taxes. HOA or condo rules may limit or ban them, and local registration and safety rules may apply.

Good to know: Read the HOA documents and check city and county rules before you buy a home planning to rent it short term.

Real estate speak

“A Florida brokerage relationship in which the broker represents only one party and owes that party fiduciary duties, including loyalty, confidentiality and full disclosure.”

Plain English

Your agent works only for you and must put your interests first, including keeping your private information confidential. In Florida, this relationship must be set up with a written disclosure.

Real estate speak

“A freestanding residential building designed for one household, sitting on its own lot and sharing no walls with other dwellings.”

Plain English

A house that stands by itself on its own piece of land. You own the building and the lot, and you are responsible for the roof, yard and everything else. There may or may not be an HOA.

Mortgage speak

“Private mortgage insurance paid in one lump sum at closing rather than as a monthly premium.”

Plain English

You pay your mortgage insurance once, upfront, instead of every month. This lowers your monthly payment, and a seller credit can sometimes cover it. If you sell or refinance soon, you usually do not get that money back.

Real estate speak

“A depression or collapse in the ground caused by the dissolving of underlying limestone, common in parts of Florida.”

Plain English

A spot where the ground sinks or caves in because the rock underneath has worn away. Florida policies cover a sudden ground collapse that makes a home unlivable, but broader sinkhole coverage is often an extra option. Ask the seller about past claims or repairs.

Mortgage speak

“The Secured Overnight Financing Rate, a benchmark based on overnight loans backed by US Treasury securities, which replaced LIBOR as the common index for adjustable-rate mortgages.”

Plain English

The main index most new adjustable rate mortgages follow. It reflects what large financial firms pay to borrow cash overnight using Treasury securities as collateral. Mortgages usually use a 30-day average of it so the rate does not jump around day to day.

Adjustable rate mortgages →

Mortgage speak

“A credit check that does not affect credit scores, such as checking your own credit or a lender prescreening for offers.”

Plain English

A credit look that does not hurt your score. Checking your own credit, preapproved card offers and some employer checks are soft pulls. Only you can see most of them on your report.

Real estate speak

“Ownership of real property by one person or one legal entity alone.”

Plain English

One person owns the property on their own. They make every decision, and when they die it passes under their will or trust, or through probate. If you're married in Florida, your spouse may still need to sign when you sell or mortgage your homestead, even if they aren't on the title.

Good to know: How you hold title affects who inherits the home, taxes, creditor protection and the Florida homestead exemption. Ask a real estate attorney or the title company before you decide; your Realtor and lender can't give legal advice.

Mortgage speak

“Documenting the origin of a non-payroll deposit in a borrower's account that exceeds the lender's large-deposit threshold, to confirm the funds are acceptable.”

Plain English

If an unusual deposit shows up on your bank statements, the lender will ask where it came from. Be ready with proof, such as a sale receipt, transfer record or gift letter. Cash deposits are hard to prove, so avoid them while buying.

Good to know: Try not to move money between accounts during the loan process without talking to your loan officer first.

Real estate speak

“A new home built by a builder on speculation, without a buyer under contract, to be sold during or after construction.”

Plain English

A new home the builder starts before anyone buys it. Finishes are already chosen, but it is often ready sooner and builders may offer deals to sell it.

Browse New Construction →

Real estate speak

“A charge levied by an association or local government on owners, beyond regular dues or taxes, to fund a specific project or expense.”

Plain English

An extra bill on top of regular fees, often for a big repair like a roof or structural work. In Florida condos these can be large. Ask whether any are approved or being discussed, and who pays them at closing.

Good to know: Read recent board meeting minutes for talk of upcoming projects.

Real estate speak

“A court-ordered remedy requiring a party in breach to complete the contract as agreed rather than pay money damages.”

Plain English

If a seller backs out without a valid reason, a buyer may be able to ask a court to force the sale. It is a lawsuit, so it takes time and money. Get legal advice before choosing this path.

Real estate speak

“Illegally guiding people toward or away from neighborhoods because of a protected characteristic.”

Plain English

Good agents share facts and let buyers choose where to live.

Real estate speak

“A Florida-required study for condominium buildings of three or more stories that estimates the life and replacement cost of key structural components and required reserves.”

Plain English

A Florida condo safety and budget study covering items like the roof, structure, plumbing and waterproofing. It tells the association how much it must save. It is a key document to review because it can point to large future fee increases.

Mortgage speak

“An agreement by a lienholder to accept a lower lien priority, typically allowing a new first mortgage to be recorded ahead of an existing second lien.”

Plain English

When you refinance your first mortgage but keep a HELOC or assistance loan, that second lender must agree to stay in second place. That approval is a subordination. It can take a few weeks, so start early.

Real estate speak

“A drawing by a licensed surveyor showing property boundaries, structures and easements.”

Plain English

A map of exactly what you're buying: the property lines, the house, fences and any easements. It can reveal a neighbor's fence on your land before you buy.

Mortgage speak

“An underwriting status in which a loan decision is put on hold because significant information is missing or a key issue must be resolved first.”

Plain English

Your file is paused. The underwriter cannot approve or deny it until something important is cleared up, such as missing income documents or a problem with the property. It is not a denial, but it needs quick attention.

Mortgage speak

“A legal claim by a government against a person's property for unpaid taxes.”

Plain English

The government has a claim on your property because of unpaid taxes. Tax liens no longer show on the major credit reports, but title searches find them. Most lenders require them paid or on an approved payment plan.

Real estate speak

“A form of joint ownership available only to married couples, with survivorship rights and protection from creditors of only one spouse.”

Plain English

A way married couples can own a home together. If one spouse dies, the other owns it outright. In Florida it can protect the home from debts owed by only one spouse. Ask an attorney how it applies to you.

Real estate speak

“The process of evaluating rental applicants through credit, income, rental history and background checks under consistent, lawful criteria.”

Plain English

Checking out applicants before you rent to them, such as income, credit, past landlords and background. Use the same written standards for everyone to stay fair and within fair housing law.

Fair Housing Basics →

Real estate speak

“Co-ownership in which each owner holds a separate share, which may be unequal, and which passes to the owner's heirs rather than the other owners.”

Plain English

Co-owners each own their own share, which can be uneven. When one dies, their share goes to their heirs or will, not to the other owners. Common for friends, relatives or investors buying together.

Real estate speak

“An inspection by a licensed pest control professional for wood-destroying organisms such as termites, wood-boring beetles and wood-decay fungi.”

Plain English

A check by a licensed pest company for termites and other bugs or rot that damage wood. In Florida it is very common and some loans, like VA in many cases, require it. The report notes live activity, past damage and any treatment found.

Real estate speak

“A contract clause making deadlines strict, so that failure to perform by a stated date may be treated as a breach.”

Plain English

Deadlines in the contract are firm, not suggestions. Missing one, even by a day, can cost you your deposit or your right to cancel. Get any extension in writing and signed.

Real estate speak

“A shared interest in a property, usually a resort unit, that gives the owner the right to use it for a set period each year, held either as a deeded share or as a right to use.”

Plain English

You buy the use of a vacation property for a week or two each year, and you pay yearly maintenance fees. Many Florida resorts sell them. They are usually hard to resell for anything close to what you paid, so think of one as a vacation cost, not an investment.

Good to know: Normal mortgages don't cover timeshares. Read the contract carefully: Florida law gives buyers a short window to cancel a new timeshare purchase.

Real estate speak

“A preliminary document from a title insurer stating the terms, requirements and exceptions under which it will issue a title insurance policy on a property.”

Plain English

Before closing, the title company searches the property records and issues this report. It shows who owns the home, any liens or problems that must be cleared, and what the title policy will not cover. Read the exceptions list carefully.

Good to know: Ask your agent or the title company about any exception you do not understand before closing day.

Real estate speak

“The third party that handles the closing and title work.”

Plain English

The title company makes sure the property's ownership is clear, handles the closing, collects and pays out the money, and records the new loan and ownership with the county.

Real estate speak

“A one-time policy that protects against losses from defects in a property's title.”

Plain English

Protection against problems from the property's past, such as an unpaid lien or a forged signature. The lender's policy protects the lender; an owner's policy protects you.

Real estate speak

“An examination of public records to confirm legal ownership and identify liens, judgments, easements or other claims against a property.”

Plain English

The title company checks the records to make sure the seller can sell and to find any debts or claims tied to the home. Problems found here must be fixed before closing.

Real estate speak

“A multi-level attached home that shares one or more walls with neighboring units, typically with fee-simple ownership of the unit and the land beneath it.”

Plain English

A home attached to its neighbors by side walls, usually two stories. You normally own the unit and the ground under it, and an HOA often handles shared areas and sometimes roofs or exteriors. Check the documents to see exactly who maintains what.

Real estate speak

“The relationship Florida law presumes between a licensee and a customer unless another is agreed in writing.”

Plain English

Your agent must deal honestly and fairly and keep certain things confidential, but isn't a full advocate unless you agree to single-agent representation.

Mortgage speak

“A single mortgage credit report combining data and scores from Equifax, Experian and TransUnion.”

Plain English

The credit report most mortgage lenders pull. It shows what all three credit bureaus have on you, side by side, with a score from each. Errors on any one bureau can show up here.

Mortgage speak

“The TILA-RESPA Integrated Disclosure rule, which governs the Loan Estimate and Closing Disclosure forms and their timing for most consumer mortgages.”

Plain English

This federal rule sets how and when you get your key loan forms. You get a Loan Estimate within three business days of applying, and a Closing Disclosure at least three business days before closing. It helps you compare offers and avoid surprises.

Real estate speak

“Florida's Truth in Millage notice, mailed in late summer, showing a property's values, exemptions, proposed taxes and public hearing dates.”

Plain English

A preview of your property taxes that Florida counties mail each year, usually in August. It shows your value and proposed taxes before they are final. It also gives the deadline to appeal your value if you think it is wrong.

Real estate speak

“The legal ways an interest in real property can be held: by the extent of the interest (fee simple, leasehold, life estate, condominium, cooperative, timeshare) and by the form of co-ownership (sole ownership, joint tenancy, tenants in common, tenancy by the entirety, community property, or through a trust or company).”

Plain English

There are two questions. First, what exactly do you own: the land and home outright (fee simple), the right to use it for a set time (leasehold or timeshare), a unit plus a share of the common areas (condo), or shares in a building company (co-op)? Second, if more than one person is buying, how do you share it: equally with automatic inheritance, in separate shares you can leave to anyone, or as a married couple? This is called how you "vest" or hold title.

Good to know: How you hold title affects who inherits the home, taxes, creditor protection and the Florida homestead exemption. Ask a real estate attorney or the title company before you decide; your Realtor and lender can't give legal advice.

Mortgage speak

“A public filing that gives a lender a security interest in a borrower's business assets.”

Plain English

How business lenders claim equipment, inventory or receivables as collateral. Other lenders can see it when you apply for more credit.

Mortgage speak

“The lender's review of your application to decide whether the loan meets its guidelines.”

Plain English

The behind-the-scenes check of your income, credit, savings and the home. The underwriter is the person who gives the final yes.

Mortgage speak

“USDA Section 502 home loans come in two forms: guaranteed loans made by approved lenders, and direct loans made by USDA Rural Development to lower-income applicants.”

Plain English

Most USDA buyers use the guaranteed loan through a regular lender, for low-to-moderate incomes. The direct loan comes from USDA itself, is for lower incomes, and may include payment help. Both offer zero down in eligible rural areas.

Good to know: Direct loans can take much longer to process, so plan your contract timeline around that.

USDA loans →

Mortgage speak

“A mortgage backed by the U.S. Department of Agriculture for eligible rural and suburban areas.”

Plain English

Zero down for buyers within income limits in eligible areas, which include many small towns and outer suburbs.

USDA loans explained →

Mortgage speak

“A document issued by the Department of Veterans Affairs confirming a borrower's eligibility and available entitlement for a VA-guaranteed home loan.”

Plain English

Proof from the VA that you qualify for a VA loan based on your service. It also shows how much entitlement you have left. Most lenders can pull it for you online in minutes.

VA loans →

Mortgage speak

“A one-time fee on VA loans that helps fund the program.”

Plain English

It can be added to the loan and is lower with a bigger down payment (2.15% with under 5% down on first use). Veterans with a service-connected disability are usually exempt.

Mortgage speak

“The VA Interest Rate Reduction Refinance Loan, which refinances an existing VA loan into a new VA loan, typically at a lower rate, with limited documentation.”

Plain English

A simple refinance for people who already have a VA loan. The goal is usually a lower rate or moving from an adjustable to a fixed rate. The VA usually does not require an appraisal, and the funding fee is smaller than on a purchase loan.

Good to know: In most cases, the monthly savings must pay back your closing costs within 36 months, or the lender cannot do the loan.

VA loans →

Mortgage speak

“A mortgage guaranteed by the U.S. Department of Veterans Affairs.”

Plain English

For eligible veterans, service members and some surviving spouses: often no down payment and no monthly mortgage insurance. A one-time funding fee applies unless you are exempt.

VA loans explained →

Mortgage speak

“The monthly income remaining after subtracting taxes, housing costs and major obligations, which VA loans require to meet a minimum based on family size and region.”

Plain English

The money you have left each month after paying your mortgage, debts and taxes. The VA wants to see enough left over to cover living expenses for your household size. Strong residual income can help if your debt-to-income ratio is on the high side.

VA loans →

Real estate speak

“The percentage of time, or of units, that a rental property is unoccupied and not producing rent.”

Plain English

How often a rental sits empty. Even good properties have gaps between tenants, so most investors plan for some lost rent each year instead of assuming 12 full months.

Mortgage speak

“A credit scoring model developed jointly by the three national credit bureaus, using a 300 to 850 range.”

Plain English

A competing credit score to FICO. Many free credit apps show it. It looks at the same kind of information but weighs it a little differently, so the number can be higher or lower than your FICO score.

Real estate speak

“Official permission from a local zoning authority to deviate from specific zoning requirements, such as setbacks or height limits, for a particular property.”

Plain English

An exception granted by the city or county that lets you break a zoning rule on your property, like building closer to the line than normally allowed. It usually requires an application, fees and sometimes a public hearing, and approval is not guaranteed.

Mortgage speak

“A form sent by a lender to a bank or financial institution asking it to confirm a borrower's account balances and account history.”

Plain English

Instead of using your bank statements, the lender may ask your bank to confirm your balances directly. It is one way to prove you have the money for your down payment, closing costs and reserves.

Mortgage speak

“We contact your employer to confirm your job and income.”

Plain English

A quick check that you're still employed and your income is what you told us, so there are no surprises before closing.

Good to know: Avoid changing jobs during your loan process if you can. If a change is coming, tell us early.

Mortgage speak

“Written confirmation from a landlord or property manager of a borrower's rental payment amount and payment history.”

Plain English

The lender may ask your landlord to confirm what you pay and whether you paid on time. Canceled checks or bank records showing rent payments are sometimes used too. A solid rent history can help your file.

Good to know: Paying rent by check or bank transfer, not cash, makes your history much easier to prove.

Real estate speak

“The manner in which title to real property is held, as stated on the deed, which determines the owners' rights during life and what happens to the property on death.”

Plain English

The words on your deed that say who owns the home and how: for example "a single woman", "husband and wife" (tenants by the entirety), "as joint tenants with right of survivorship" or "as tenants in common". The title company will ask you for this before closing, so decide in advance.

Good to know: How you hold title affects who inherits the home, taxes, creditor protection and the Florida homestead exemption. Ask a real estate attorney or the title company before you decide; your Realtor and lender can't give legal advice.

Real estate speak

“In Florida usage, a marketing term for a small attached or semi-attached single-story home, which may be owned as fee simple or as a condominium.”

Plain English

In Florida, a villa is usually a one-story home attached to one or more neighbors, often in a community with an HOA. The word has no legal meaning, so a villa can be a condo or a regular owned lot. Check the deed and documents to see which.

Mortgage speak

“The minimum time a loan program requires after a bankruptcy, foreclosure, short sale or deed in lieu before a borrower can qualify for a new mortgage.”

Plain English

After a major credit event, you usually have to wait before getting a new mortgage. The wait depends on the loan type and the event, often from about one to seven years. Government loans tend to have shorter waits.

Good to know: Rebuild credit during the wait. A clean recent record makes approval much easier when the time is up.

Mortgage speak

“A condominium project that meets Fannie Mae or Freddie Mac eligibility standards, allowing units to be financed with conventional conforming loans.”

Plain English

A condo building that passes Fannie Mae or Freddie Mac rules on things like reserves, owner occupancy, unpaid HOA dues, lawsuits and building safety. Buyers can use standard conventional loans. In Florida, older buildings get extra review of structural inspections and reserves.

Real estate speak

“A deed in which the seller guarantees a clear title.”

Plain English

The strongest type of deed for a buyer, and common in Florida sales.

Mortgage speak

“A channel in which lenders offer loan products and pricing to mortgage brokers, who originate loans that the wholesale lender underwrites and funds.”

Plain English

Wholesale lenders do not deal with the public directly. They work through mortgage brokers. This can give brokers access to many programs and competitive pricing for their clients.

Real estate speak

“A strategy in which an investor places a property under contract and assigns that contract to another buyer for a fee before closing.”

Plain English

Someone gets a home under contract at a low price, then sells their contract rights to another investor for a fee. Sellers should understand exactly who is buying and when they will close.

Good to know: Florida has rules about marketing property you do not own. Wholesalers should check with an attorney.

Real estate speak

“An inspection documenting features that help a home resist wind damage.”

Plain English

In Florida it can noticeably lower your insurance premium. Ask for one on every home you buy.

Real estate speak

“Scams in which criminals send fake wiring instructions to steal closing funds.”

Plain English

Always call the title company at a number you already trust before wiring money. Real instructions rarely change by email.

Mortgage speak

“Current assets minus current liabilities; the money available to run day-to-day operations.”

Plain English

The cash cushion that pays wages, rent and suppliers while you wait for customers to pay.

Real estate speak

“Local government regulation dividing land into districts and controlling permitted uses, density, building size and placement within each district.”

Plain English

Local rules about what can be built and how land can be used, such as homes only, businesses, or farming. Zoning affects whether you can add a unit, run a business from home, or what might be built next door. Your city or county planning office can confirm it.