We know there is often a lot of research done before ever speaking with a loan officer. Here is an outline of the most common acronyms you may come across and what they mean: • APR – Annual Percentage Rate – The percent of your loan you will pay every year in interest. This amount then gets added to the amount you borrowed to calculate the total amount you’ll owe. • CD – Closing Disclosure – The document you receive a few days before you officially close on your home. It compares your final costs and loan terms to your initial loan estimate. • DPA – Down Payment Assistance – Programs that can help prospective home buyers who are ready to purchase but don’t have funds for a full down payment. This assistance can come in the form of grants, low-interest loans, or zero-interest loans, some of which are forgivable. • DTI – Debt to Income (ratio) – Your debt-to-income ratio is the amount of your all of your debts (including a mortgage) in relation to your income. This is one key figure lenders use when determining loan qualification. • FHA – Federal Housing Authority – Part of the U.S. Department of Housing and Urban Development. The FHA provides loans that are backed by the government with a fixed rate. • HOI – Homeowner’s Insurance – Homeowner's insurance is a type of insurance that covers your property against damage or loss. Note that it is different from a home warranty and mortgage insurance. • LE – Loan Estimate – Loan Estimate is a document that explains in detail the terms, payments and costs associated with your loan. • LTV – Loan to Value (ratio) – your loan-to-value ratio is the value of your mortgage loan in relation to the appraised value of the home. Lenders use it to determine two things: whether to approve your application, and whether you'll need to pay mortgage insurance.