Mortgage Learning Center
Buying a home is one of the biggest financial decisions you'll make. Alta Mortgage Group put this hub together to help you understand the process, the terminology, and the programs available to Utah homebuyers — no jargon, no pressure.
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4 Tips Every Borrower Should Know
Small choices during the loan process can have big consequences. Avoid these common pitfalls.
Lock your rate when you're ready
Interest rates change daily. Once you have an accepted offer, locking your rate protects you from rate increases while your loan is being processed.
Don't open new credit before closing
New credit cards, car loans, or even big credit inquiries during underwriting can derail your loan. Wait until after closing for any new credit.
Keep employment steady
Lenders verify employment right before closing. Switching jobs (especially to self-employment) during the loan process can complicate things.
Document any large deposits
Underwriters scrutinize bank statements for unexplained deposits. Keep records of gift funds, bonuses, or asset sales so you can explain them quickly.
Mortgage Glossary
Confused by the lingo? Here are the terms that come up most often.
- APR (Annual Percentage Rate)
- The total yearly cost of a mortgage, including interest plus fees. APR is usually slightly higher than the interest rate and gives you a more accurate comparison between loans.
- Closing Costs
- Fees paid at the close of a real estate transaction — typically 2–5% of the loan amount. Includes appraisal, title insurance, lender fees, and prepaid taxes/insurance.
- Down Payment
- The portion of the home price you pay upfront in cash. Varies from 0% (VA/USDA) to 20%+ (conventional, to avoid PMI).
- Equity
- The portion of your home you actually own — your home's current value minus what you still owe on your mortgage.
- Escrow
- An account managed by your lender to pay property taxes and homeowners insurance. Part of your monthly payment goes into escrow to cover these annual costs.
- PMI (Private Mortgage Insurance)
- Insurance you pay monthly if your down payment is under 20% on a conventional loan. It protects the lender if you default. Can be canceled once you reach 20% equity.
- Pre-Approval
- A lender's written statement of how much you qualify to borrow, based on a review of your finances. Stronger than pre-qualification and signals to sellers you're serious.
- Principal & Interest
- The two main components of your mortgage payment. Principal pays down the loan balance. Interest is the cost of borrowing the money. Early payments are mostly interest; later payments are mostly principal.
Still have questions?
We'd rather you ask than guess. A 15-minute conversation with one of our loan specialists is the fastest way to see what makes sense for your situation — and it's free.