Mortgage words, explained like a friend would.

The account your lender uses to pay your property taxes and homeowners insurance for you. A slice of each monthly payment goes in; the bills get paid out. In Fort Bend, where taxes are the biggest line after principal and interest, this is most of the “extra” in your payment.

A special district that financed a master-planned community’s water, sewer and drainage and repays it through an extra property tax. Sienna, Riverstone, Aliana and most newer Fort Bend communities have one. It’s part of the effective tax rate on a specific home.

A Texas benefit that removes part of your primary home’s value from taxation and caps how fast the appraised value can rise. Free to file with the county appraisal district after you close. Do it.

Insurance that protects the lender when you put less than 20% down on a conventional loan. It’s a monthly cost, it goes away once you have enough equity, and it is often cheaper than waiting years to save 20%.

The one-time fees to make the loan and transfer the house: lender fees, title, appraisal, recording, plus prepaid taxes and insurance. Plan on 2–3% of the price in Texas; sellers and lenders can contribute toward them.

Prepaid interest. One point = 1% of the loan amount, paid at closing to lower your rate. Worth it if you keep the loan long enough to recover the cost; the team runs that break-even for you.

Annual Percentage Rate — the interest rate plus most lender fees, expressed as a yearly rate. It’s the apples-to-apples number for comparing loan offers. A low rate with high fees can have a higher APR than a slightly higher rate with none.

Two standardized forms. The Loan Estimate arrives within three business days of applying and shows your expected costs. The Closing Disclosure arrives at least three business days before closing with the final numbers. Same layout, so you can compare them line by line.

Pre-qualification is a guess based on what you say. Pre-approval means we’ve pulled credit, reviewed documents and an underwriter’s eyes have been on it. Fort Bend listing agents can tell the difference — get the real one.

Your monthly debt payments — including the new mortgage — divided by your gross monthly income. Most programs like it under roughly 43–50%. It is the single biggest lever in how much house you qualify for.

Loan amount divided by the home’s value. 10% down = 90% LTV. It drives your rate, whether PMI applies, and which programs fit.

The maximum loan Fannie Mae and Freddie Mac will buy, set yearly by the FHFA per county. Above it, you’re in jumbo territory with different rules.

Money left over after closing, measured in months of mortgage payments. Not always required, but they strengthen a file — especially on jumbo loans and for self-employed buyers.

A Texas-specific window after you go under contract — usually 5–10 days — where you can inspect the home and walk away for any reason for a small fee. Your inspections happen here.

A licensed appraiser’s opinion of the home’s value, ordered by the lender. If it comes in below the price, you renegotiate, cover the gap, or walk — your option period and financing contingencies matter here.

The lender’s formal review of your income, assets, credit and the property. Underwriters issue “conditions” — additional documents or explanations — and then a final approval.

The moment underwriting has every condition satisfied and signs off. Closing gets scheduled, the Closing Disclosure goes out, and you start packing.

A commitment from the lender to hold your interest rate for a set period — typically 30–60 days — while your loan closes. Locking protects you if rates rise; it does not stop you from refinancing later if they fall.

A one-time policy that protects you (and the lender) if someone later claims an ownership interest in your property. In Texas the rates are regulated by the state, so they’re the same everywhere.