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Glossary

Knowledge is power and there’s no difference when it comes to obtaining a home loan! To help you on the journey to becoming an educated borrower, we’ve created this glossary of terms you’ll need to know during your home loan process.

 

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There are 3 names in this directory beginning with the letter D.
Debt-to-Income Ratio (DTI)
A debt-to-income ratio, also referred to as DTI, is one method a lender uses to measure an individual’s ability to afford monthly mortgage payments and repay debt.

Default
To default on a loan means that the borrower has failed to stick with the terms of the loan. For example: no longer making mortgage payments.

Down Payment
A down payment is the amount of money you pay upfront toward the purchase of your home, typically paid as a percentage of the price of the home. The higher the down payment, the less money you have to borrow.