Glossary
The mortgage vocabulary, in plain English.
A reference for the terms that come up most in Reno and Tahoe transactions. Each entry is short, written for buyers, and links into the rest of the site where the term actually matters.
Process
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Debt-to-Income Ratio
The percentage of a borrower's gross monthly income that goes toward debt payments — one of the core numbers a lender uses to decide whether a mortgage fits.
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Loan-to-Value
The ratio of the loan amount to the appraised value of the property — a core underwriting number that drives down payment, mortgage insurance, pricing, and program eligibility.
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Pre-Approval
A lender's preliminary review of a buyer's credit, income, assets, and debts to estimate the loan amount they may qualify for — subject to full underwriting and a property review.
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Pre-Qualification
A casual, lender-issued estimate of how much a buyer might be able to borrow, based on numbers the buyer self-reports — without document review or a credit pull.
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Pre-Underwriting
Having a human underwriter actually read and approve a buyer's loan file before an offer is written — so the loan is fully done except for the property address.
Loan products
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Bank Statement Loan
A mortgage program that qualifies a self-employed borrower based on deposits into business or personal bank accounts, rather than tax-return income.
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Conventional Loan
A mortgage that is not insured or guaranteed by a federal agency, typically eligible for purchase by Fannie Mae or Freddie Mac if it meets conforming loan limits and underwriting standards.
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FHA Loan
A mortgage insured by the Federal Housing Administration, designed to make home ownership accessible to buyers with lower down payments or non-traditional credit profiles.
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Jumbo Loan
A mortgage with a loan amount higher than the conforming loan limits set by Fannie Mae and Freddie Mac — underwritten more carefully and priced separately from standard conforming loans.