One common mortgage abbreviation is VOE, which stands for Verification Of Employment. Lenders will generally verify your employment at least once. Although you will be asked for your employer's phone number when you apply, lenders will use a phone directory or directory assistance when verifying your employment. The lender will ask to speak to Human Resources or a Manager. Often, the lender wil verify employment again on the day of closing or one day before.

DTI - Debt to Income Ratio

Another common term you may hear and one of the most important ones, along with LTV, is DTI or Debt to Income ratio. The DTI is used to detrmine if your income will support your new monthly payment on a mortgage. It factors in all of your current monthly debt from credit cards, car loans, etc. and then adds the new mortgage payment plus a monthly amount for property taxes and homeowners insurance. This gives you your new monthly debt which is then divided by your gross monthly income (before deductions). Some programs require a DTI of 40% while other loan programs go as high as 55%. In general, programs offering the best rate will require DTI's under 45%.

VOR - Verification of Rent

If you have been renting prior to purchasing a home your lender will require proof you have paid your rent on time for at least 12 months.

VOM - Verification of Mortgage

A Verification of Mortgage may be required when you refinance. It is used to determine if you have any late payments, and how many you may have had.

LOX - Letter of Explanation

If you have any unique aspects to your application, such as frequent job changes, isolated late payments in the past, no rental history, etc the lender may ask for a Letter of Explanation simply explaining the issue. If your explanation makes sense, and is reasonable lenders are often willing to accept your unique circumstances.

CTC - Clear to Close

CTC means your loan approval is clear of all conditions and you are ready to go to the closing table. You have made it to the end of the loan process and it is time to get ready to move into your new house or decide how best to use the cash you took out of your home equity.

PMI - Private mortgage insurance.

This is insurance provided by 3rd-party insurers that protect lenders against loss if a borrower defaults. Typically, a borrower will have to pay for PMI if they are borrowing more than 80% of the home's value.