REALTOR®: A licensed real estate professional who is a member of the National Association of Realtors (NAR). They adhere to a specific code of ethics.
MLS: Multiple Listing Service. A database used by real estate professionals to share property listings.
CMA: Comparative Market Analysis. A report that compares a property to similar properties to determine its market value.
FSBO: For Sale By Owner. A property being sold directly by the owner without a realtor.
DOM: Days on Market. The number of days a property has been listed for sale.
ESCROW: A neutral third-party account where funds and documents are held until all conditions of a real estate transaction are met.
HOA: Homeowners Association. An organization that manages and maintains common areas and enforces rules for a residential community.
LTV: Loan-to-Value Ratio. The ratio of the loan amount to the appraised value of the property, often used by lenders to assess risk.

APR: Annual Percentage Rate. The cost of a loan expressed as a yearly interest rate, including fees.
FHA: Federal Housing Administration. A government-backed loan program for low-to-moderate-income buyers, often with lower down payment requirements.
VA: Veterans Affairs. A loan program offering favorable terms for veterans, active-duty military, and their families.
DTI: Debt-to-Income Ratio. A ratio that compares a borrower’s monthly debt payments to their gross monthly income. It helps lenders assess a borrower’s ability to repay a loan.
PMI: Private Mortgage Insurance. Insurance that protects the lender if the borrower defaults on a conventional loan, usually required when the down payment is less than 20%.
ARM: Adjustable-Rate Mortgage. A type of mortgage where the interest rate can change over time, typically after an initial fixed-rate period.
PITI: Principal, Interest, Taxes, and Insurance. The four components that make up a monthly mortgage payment.
CD: Closing Disclosure. A document that outlines the final terms and costs of a mortgage loan before closing.
GFE: Good Faith Estimate. A document from the lender that provides an estimate of the costs and fees involved in the mortgage process, now replaced by the Loan Estimate form.
FICO: Fair Isaac Corporation. A credit scoring system commonly used by lenders to assess a borrower’s creditworthiness.