First Time Homebuyer

You may qualify for low or no money down options. Ask our loan agents about FHA, VA, USDA, HomeReady, or Home Possible.

It's your first home, but it's not our first mortgage. Let us help you understand each stage of the process.

Homeownership brings many benefits:

• Take control. Avoid rent increases and cancelled leases while creating a home that meets your needs and tastes.

• Build home equity. Grow your assets with the principal portion of your mortgage payments as your property value potentially increases.

• Get tax benefits. Deduct mortgage interest and real estate property taxes on your income tax returns. (Consult a tax advisor regarding the deductibility of interest and taxes).

• Build your credit. Create a strong credit history by making on-time mortgage payments.

Here are some terms you should understand.

Interest rate
The interest rate is the percentage of your loan amount we charge you to borrow money. Interest rates are based on current market conditions, your credit score, down payment, and the type of mortgage you choose. Check today's rates.

Discount points
One point equals 1% of your mortgage amount. If you qualify, you may be able to pay one or more points to lower your interest rate. A lower interest rate means lower monthly mortgage payments. Points are usually tax deductible. Consult a tax advisor regarding tax deductibility. On refinances you may be able to finance points as part of your mortgage amount.

Origination charge
On a mortgage, this amount includes all charges (other than discount points) that all loan originators (lenders and brokers) involved will receive for originating the loan. The origination charge covers items including fees, document preparation, and underwriting costs, and other expenses. On refinances, if you qualify, you may be able to finance the origination charge as part of your loan amount.

Loan term
Your loan term is the amount of time you have to pay off your mortgage balance. Shorter loan terms typically mean higher monthly mortgage payments, but often have lower interest rates. If you pay off your mortgage balance within a shorter term, you may pay less in total interest than with a longer-term mortgage. Remember that interest rates only tell part of the story. The total cost of a mortgage is reflected by the interest rate, discount points, fees, and origination charges. This total cost is known as the annual percentage rate (APR), which is typically higher than the interest rate. The APR lets you compare mortgages of the same dollar amount by considering their total annual cost.

Monthly mortgage payment
Your monthly mortgage payment is typically made up of four parts:

Principal. The part of your monthly payment that reduces the outstanding balance of your mortgage.

Interest. The part of your monthly payment that goes toward the cost of borrowing the money.

Taxes. The part of your monthly payment that goes toward property taxes charged by your local government. We typically collect a portion of these taxes in every mortgage payment and hold the funds in an escrow account for tax payments made on your behalf as they become due.

Insurance. The part of your monthly payment that pays for homeowners or hazard insurance, which provides protection against losses from property damage due to wind, fire, or other risks. Like taxes, insurance costs are usually collected and paid from an escrow account.

Depending upon your property location, property type, and loan amount, you may have other monthly or annual expenses such as mortgage insurance, flood insurance, or homeowner association fees.

HUD.gov Buying a home guide

We make the process as simple as possible. You don't need to negotiate with the banks, we'll handle everything. Call us at 888-239-6161.