Also agree that Mormons do not believe in God. They call their Heavenly Father God, but he is not God. They believe that the God of the Old Testament is Jesus, aka Jehovah. Your understanding as you described it is correct.
There is an infinite regression of generations of gods. Heavenly Father has a physical, glorified body of flesh and bone (no blood). He is the father of the spirits of Jesus, Lucifer and the rest of us. Heavenly Mother is also somehow involved. She is also glorified but not worshiped or adored by any of her spirit children. We are not allowed to know much about her other than her existence. If we live worthy to be “exalted”, we become like Heavenly Father. This is generally understood to mean we have our own spirit children with our eternal spouses and eventually organize new planets for them to have their own bodies, etc.
I think the best way to describe Mormon beliefs of God and divinization is that it is like an MLM. We are on this earth to achieve the rank of “god”. Earlier generations of gods have already achieved that rank and are higher in the hierarchy. Heavenly Father is our head god and we are still under him even after we achieve godhood.
When I was in high school, I went through an agnostic phase and eventually reasoned my way to believing in God. I used classical philosophy without realizing that was what I was doing. Because I was raised Mormon, I made the mistake of believing that Heavenly Father is God. When I learned that Joseph Smith was a false prophet, I realized that Heavenly Father is not God. When I finally understood that, I was able to find my way to the Catholic Church rather quickly. Some ex Mormons I know think I am a deluded fool for seemingly jumping to Catholicism so quickly. It’s only been a 20 year journey to get here. I just didn’t realize I was on that journey and that God has been calling me home that whole time.
I think a lot of Mormons make that same mistake. They mistakenly believe Heavenly Father is God. If you talk to your average Mormon on the street, they will tell you they believe in God without knowing what you actually mean when you say God. Mormons really speak a different language. They use the same words like God, Jesus Christ and Holy Spirit but they mean something entirely different.