Financial Terms Glossary

A lender's rough estimate of what you could borrow, based on what you tell them. Nothing is checked, so sellers give it little weight.

A lender's written statement that you qualify up to a set amount after checking your credit and documents. Send it with every offer. See Get pre-approved.

The amount you borrow, and the part of each payment that pays it down.

The yearly cost of borrowing, as a percent of what you still owe.

The interest rate plus most lender fees, spread over the loan, as one yearly percent. Use it to compare offers from different lenders.

A loan whose rate never changes, so principal and interest stay the same for the whole term, usually 15 or 30 years.

A loan with a fixed rate for the first few years, often 5, 7, or 10, that then adjusts on a schedule. A 7/6 ARM is fixed for 7 years and then adjusts every 6 months.

Fees paid up front to lower the rate. One point is 1 percent of the loan amount.

The lender's promise to hold your rate for a set number of days while the loan closes.

The loan divided by the home's value or price. A $360,000 loan on a $400,000 home is 90 percent LTV.

Your monthly debts, including the new house payment, divided by your gross monthly income. Lenders use it to decide how much you can borrow.

A mortgage not backed by the government. Most follow Fannie Mae and Freddie Mac rules.

The largest loan Fannie Mae and Freddie Mac will buy. In 2026 it is $832,750 for a one-unit home in Clark County. It changes every January.

A loan above the conforming limit. Expect stricter credit, larger down payment, and reserve rules.

A loan insured by the Federal Housing Administration, with as little as 3.5 percent down. FHA has its own loan limit for Clark County, and condos must be in an FHA-approved project.

A loan guaranteed by the Department of Veterans Affairs for eligible veterans, service members, and some surviving spouses. Usually no down payment and no monthly mortgage insurance.

A no down payment loan for homes in eligible rural areas. Most of the Las Vegas valley does not qualify; outlying towns can.

Insurance that protects the lender on a conventional loan with less than 20 percent down. You can ask to remove it once you reach 20 percent equity, and it ends on its own at 22 percent under the original schedule.

FHA's mortgage insurance: an up-front premium plus a monthly one. With less than 10 percent down it lasts for the life of the loan.

A one-time fee on most VA loans, which can be added to the loan. Veterans receiving VA disability compensation are exempt.

Principal, interest, taxes, and insurance: the full monthly house payment. In Las Vegas, add HOA dues to get the real number.

The schedule that pays a loan off over its term. Early payments are mostly interest; later ones are mostly principal.

The lender's full review of you, the home, and the appraisal before final approval.

The lender's sign-off that every condition is met and the loan can fund.

A signed letter from a family member saying money for your down payment is a gift and does not have to be repaid.

The fees to get the loan and transfer the home, usually about 2 to 3 percent of the price for a buyer. See Understanding closing costs.

A standard three page form the lender must give you within 3 business days of your application, listing your rate, payment, and costs.

The final version of your loan terms and costs. You must receive it at least 3 business days before you close.

Costs you pay ahead at closing: the first year of homeowners insurance, some property taxes, and interest to the end of the month.

An account your lender keeps to pay your property taxes and insurance, funded by part of each monthly payment.

The deposit you make when your offer is accepted, held by the escrow company and credited to you at closing.

Money the seller agrees to put toward your closing costs. Each loan type caps how much is allowed.

An independent opinion of value ordered by the lender. The loan is based on the lower of the price or the appraised value.

The difference when a home appraises below the price. You can pay it in cash, renegotiate, or cancel if your contract allows.

Insurance against claims on the title from before you owned the home. The lender's policy protects the lender; an owner's policy protects you. Who pays for each is set in the purchase agreement.

Covers the house and your belongings. The lender requires it, and you need a policy in place before closing.

A service contract that pays for repairs to systems and appliances for a year or more. Sellers often offer one in Las Vegas.

The contract you sign to buy the home. In Southern Nevada it sets the price, earnest money, loan terms, due diligence period, and closing date.

A condition in the contract that lets you cancel if it is not met, like the loan or the appraisal.

The days after acceptance, set in the contract, to inspect the home and review the disclosures and HOA documents. You can cancel inside it and get your earnest money back.

The neutral middle step where an escrow company holds the money and documents until every condition is met, then closes the sale.

The person at the escrow company who runs your closing, collects the funds, and records the deed.

The title company's check of public records for liens, claims, or problems before closing.

The title company's report of what the search found, and what must be cleared before closing.

The document that transfers ownership. In Nevada it is usually a grant, bargain, and sale deed.

The document that secures your loan with the home. Nevada uses deeds of trust, not mortgages, as the security instrument.

Filing the deed and deed of trust with the Clark County Recorder, which makes the sale official.

Your last look at the home before closing, to make sure it is in the agreed condition and repairs were done.

The day the loan funds, the deed records, and the home is yours.

A tax charged when a deed records. In Clark County it is $2.55 for every $500 of value. In Las Vegas the seller customarily pays it, though the contract can say otherwise.

The state form where the seller lists the defects they know about. Nevada law requires it at least 10 days before closing.

The association's documents for a buyer: budget, dues, rules, CC&Rs, and any special assessments or violations. Nevada law gives you until midnight of the fifth calendar day after you receive it to cancel in writing.

Many Las Vegas communities have two HOAs: a master association for the whole community and a sub-association for your neighborhood, each with its own dues.

Covenants, conditions, and restrictions: the HOA's rules for what you can do with the home, including parking and exterior changes.

Special and Local Improvement Districts. Some neighborhoods pay off roads or utilities through an assessment on the property tax bill. Ask whether a home has one and what balance is left.

Nevada limits the yearly increase on an owner-occupied home's tax bill to 3 percent, and up to 8 percent on other property. A sale removes the prior owner's 3 percent cap, so return the Clark County Assessor's postcard after you close.

A contract for panels the homeowner does not own. It transfers to the buyer and needs the solar company's approval, so ask early.

The Nevada Housing Division's down payment and closing cost help for qualifying buyers, offered through participating lenders.