Homebuyer Education Center

The rate is fixed for an initial period, then adjusts periodically based on an index.

An itemized statement of all costs and money movement at closing, used by title companies, agents and attorneys.

The interest rate plus most lender fees, expressed as one yearly percentage, so you can compare offers fairly.

An independent licensed opinion of the property's market value, ordered by the lender.

The housing payment plus all other recurring debts, divided by gross monthly income.

The total amount you must bring on closing day: down payment plus closing costs and prepaids, minus your deposit and any seller credits.

The lender has finished its review, all conditions are met and the loan is approved for closing.

Fees paid to complete the transaction: lender fees, title insurance, recording, documentary stamps, settlement fees and survey.

The document that outlines the final loan terms, costs and cash to close. You must receive it at least three business days before closing.

All loans secured by the property, divided by its value — including second mortgages and HELOCs.

A Florida special district that finances community infrastructure and bills owners an annual assessment.

Any value the seller gives the buyer to close the deal — money, repairs or paid fees.

Approval granted subject to a list of remaining items the borrower must provide.

A mortgage not insured by a government agency, following common industry guidelines.

A number summarizing your credit history that lenders use to set eligibility and pricing.

How much of your revolving credit limits you are using, as a percentage.

It compares your recurring monthly debt payments with your gross monthly income.

The legal document by which the seller officially transfers ownership to the buyer, guaranteeing clear title.

Money paid up front to the lender to permanently lower the interest rate. One point is 1% of the loan.

The cash you pay up front toward the purchase price. It is not part of the loan.

A good-faith deposit delivered to the title company after the contract is signed. It is credited to you at closing.

A legal right for someone else to use part of your property, for example for utilities or access.

The date the last party signs and the contract becomes binding. All deadlines count from this date.

An account the servicer uses to hold part of your monthly payment and pay property taxes and insurance for you.

A mortgage insured by the Federal Housing Administration, designed for buyers with smaller down payments.

A contract clause letting you cancel if your loan is denied within the stated deadline.

The interest rate never changes, so the principal and interest payment stays the same for the whole term.

A separate policy covering flood damage. Standard homeowners insurance does not cover flooding.

A FEMA-designated area indicating flood risk, which determines whether flood insurance is required.

Only the proposed housing payment divided by your gross monthly income.

An organization that maintains a community and charges recurring dues, with rules owners must follow.

A policy covering damage to your home and liability. Lenders require it while you have a mortgage.

A Florida property tax exemption for your primary residence that reduces the taxable value of the home.

The window in which you may inspect the property and, under an as-is contract, cancel and recover your deposit.

The cost the lender charges you for using their money, calculated on the balance you still owe.

The annual percentage the lender charges for the loan. It drives your principal and interest payment.

A legal claim against a property for an unpaid debt, which must usually be cleared before transfer.

Home price minus your down payment (plus any financed fees). It is the balance you start paying interest on.

Your loan amount divided by the property's value — how much of the home the lender is financing.

The tax rate expressed in dollars per $1,000 of taxable value, set by local taxing authorities.

A loan secured by the home itself. If the loan is not paid, the lender can foreclose on the property.

The FHA version of mortgage insurance: an up-front premium plus an annual premium paid monthly.

A charge on the tax bill based on a service or improvement rather than on property value — like CDD, trash or lighting.

The ability to transfer part of your accumulated Save Our Homes benefit to a new Florida homestead.

A lender's written estimate after reviewing your income, assets and credit, stating how much you may borrow.

Amounts collected at closing to fund the first period of taxes, insurance and interest in advance.

An informal estimate of what you might borrow, based on information you state without full verification.

The amount of money you actually borrow, before any interest is added.

The part of the monthly payment that goes to the loan itself — it does not include taxes, insurance or HOA.

Your full monthly housing payment: loan payment plus property taxes and homeowners insurance (and often PMI and HOA).

Insurance that protects the lender, usually required on conventional loans when you put down less than 20%.

Your written promise to repay the loan, stating the amount, rate, term and payment schedule.

Annual taxes charged by the county based on the assessed value of your property and the local millage rate.

Paying up front to lower the rate for the first years of the loan (for example 2-1) or permanently.

A Florida cap that limits how much the assessed value of a homesteaded property can rise each year.

Money the seller agrees to apply toward your closing costs, negotiated in the contract.

A licensed drawing of the property showing boundaries, easements, encroachments and dimensions.

The title company's document stating the conditions, exceptions and terms under which it will insure the title.

A policy protecting against public-record errors, fraud, hidden liens and future ownership disputes.

A review of public records to confirm legal ownership and find liens, mortgages or legal problems.

The lender's formal review of your documents, the property and the appraisal before approving the loan.

A loan program for eligible rural and some suburban areas, with income limits.

A loan guaranteed by the Department of Veterans Affairs for eligible service members and veterans.

County or city rules that define what can be built on a parcel and how it may be used.