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First Time Homebuyer Learning Center
Everything you need to know about buying your first home: costs, credit, pre-approval, payments, and more. All in one place.
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Loan Types
Explore the different mortgage options available. Our Loan Officers will guide you and help you choose the best fit for your financial goals.
Mortgage Calculator
Estimate your monthly payment and budget with confidence. Use our mortgage calculator to preview principal and interest based on your price and loan terms, so you can plan smart before house hunting.
Down Payment Assistance Options
DPA helps first-time buyers cover down payment and/or closing costs, making homeownership more affordable and within reach.
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First Time Homebuyer FAQ’s
How do I get pre-approved for a mortgage?
Getting pre-approved starts with completing a mortgage application. This allows us to review key factors like your credit profile, income, assets, and overall financial picture to determine how much you may qualify to borrow.
After you submit the required documentation to verify your income and assets, we’ll finalize your approval and provide a pre-approval letter. Having this letter in hand shows sellers you’re a serious, qualified buyer and can give you a competitive edge when making an offer on a home.
What will my monthly mortgage payment be?
You can use our Payment Calculator to get an estimate of your monthly principal and interest payment. The calculation is based on the home’s purchase price and the loan terms you’re considering, giving you a clearer picture of what your potential monthly payment could be.
Can I purchase a home with less-than-perfect credit?
Yes, homeownership may still be possible even if your credit isn’t flawless. There are a variety of loan programs designed to work with different credit profiles, and we can help review your options to find a solution that fits your situation. Contact us to discuss your specific goals and next steps.
What is a P&I payment?
P&I stands for principal and interest—the core portion of your monthly mortgage payment. The principal is the amount you borrowed to purchase your home, and the interest is what the lender charges you for borrowing that money. Together, principal and interest typically make up the largest part of your mortgage payment. Depending on your loan setup, your total monthly payment may also include amounts for property taxes, homeowners insurance, and possibly mortgage insurance, which are often collected through escrow.
What is an escrow account?
An escrow account is set up by your lender to hold funds for expenses related to your home, such as property taxes and homeowners insurance. Instead of paying these large bills separately, you contribute a portion each month as part of your mortgage payment. The lender then uses those funds to pay the bills when they come due. It’s not an extra charge—just a way to manage and distribute those expenses over time.
What are mortgage points?
Mortgage points—also called discount points—are optional fees paid upfront at closing to reduce your interest rate. One point equals 1% of your loan amount. For example, on a $100,000 loan, one point would cost $1,000. Paying points can lower your monthly payment over the life of the loan, which may make sense depending on how long you plan to stay in the home.
How can I estimate property taxes?
Property taxes are based on the assessed value of your home and the local tax rate set by your city or county. The amount you owe will vary depending on where the property is located. Taxes may be paid annually, semiannually, or included in your monthly mortgage payment through escrow. For the most accurate estimate, check with your local tax assessor’s office.
Why is a home inspection important?
A home inspection is an opportunity to uncover potential issues before finalizing your purchase. While it’s an added cost, a licensed inspector may identify concerns that aren’t visible during a typical showing. This is especially valuable when purchasing an existing home. If repairs are needed, you may be able to negotiate with the seller to fix the issues or adjust the purchase price to account for them.
Why does my lender require homeowners insurance?
Homeowners insurance protects both you and your lender if the property is damaged by events like fire, storms, or other covered losses. The policy outlines what’s covered, and the premium is the amount you pay for that coverage. In many cases, your lender will collect a portion of the premium each month as part of your mortgage payment and hold it in escrow until the insurance bill is due.
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Tips for First Time Homebuyers
Buying your first home is exciting, but it also comes with a lot of moving parts. Along with the big decisions, there are several smaller (but important) choices that can impact your experience. Here are smart tips to help you avoid common first-time buyer mistakes.
1. Understand your upfront costs.
Before closing day, you’ll need funds for both your down payment and closing costs. Down payments can range from as little as 3% to 20% or more, depending on the loan program. If you put down less than 20% on a conventional loan, you’ll likely need to pay private mortgage insurance (PMI).
2. Plan for mortgage insurance if needed.
If your down payment is under 20% on a conventional loan, PMI will likely be part of your monthly payment. Make sure you understand the cost and include it in your overall housing budget of 20% or more, depending on the loan program. If you put down less than 20% on a conventional loan, you’ll likely need to pay private mortgage insurance (PMI). Closing costs generally fall between 3%–7% of the loan amount and may include lender fees, title charges, appraisal costs, and more.
3. Look into utility expenses.
Moving to a larger home, or one that’s older, newer, or in a different climate: can significantly impact monthly utility bills. Ask about average energy and water costs so you’re not caught off guard after move-in.
4. Account for additional expenses.
Beyond your mortgage, you’ll want to budget for moving costs, routine maintenance, and possible repairs. Condos or homes in an HOA will also include association dues. It’s wise to keep an emergency fund in place for unexpected expenses or income changes.
5. Be mindful of new debt after closing.
Once you move in, it can be tempting to finance furniture, appliances, or upgrades. However, taking on too much additional debt can strain your budget and make it harder to stay on track with your mortgage payments. Plan carefully and prioritize essentials.
6. Get pre-qualified before you start house hunting.
Knowing your estimated purchasing power helps narrow your home search and keeps expectations realistic. A mortgage pre-qualification gives you a clearer picture of what you can afford before you begin touring homes. Preparing ahead and understanding the full financial picture can make your path to homeownership smoother and far less stressful. Select a loan officer and Apply Now
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