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First Time Homebuyers

First Time Homebuyers

Tips to get you started on the journey homeownership

Applying for a home loan with TDECU just got easier!

Congratulations on the decision to purchase your new home!

Buying a home is an exciting journey and major step in life, but it can also seem confusing and frustrating at times with upfront costs, mortgage pre-qualification, and homeowners insurance.

We want to provide you with a guide that outlines what to expect in the home-buying process, along with assistance program options available to you.

Selecting the right mortgage loan program

The most important step in buying a home is choosing the best type of mortgage loan. Analyzing your particular personal finance and future goals are important factors to consider when getting a mortgage and considering pre-qualification. here are many types of mortgage options and first-time homebuyer programs available that will fit your needs and financial decisions.

Fixed rate

Those who are interested in a longer mortgage will likely get a conventional mortgage loan. These home loans have a fixed interest rate for as long as 30 years. Once the loan is active, the rate will not change until the loan amount has been paid off. If interest rates decline, the homeowner can refinance to a lower rate. However, if interest rates increase, the homeowner has a protected lower interest rate.

For homeowners who can afford a higher payment, want to gain equity faster, and pay less overall interest during the term of the loan, a 15 year fixed mortgage rate is recommended. They are also better for people nearing retirement age. A 15-year loan pays the mortgage off quicker, and the interest rate is typically lower than on a 30-year mortgage.

Adjustable rate mortgage (ARM)
There are also adjustable rate mortgage (ARM) loans, where the interest rate is fixed for a certain length of time. After the loan term expires (10 years) then the interest rate becomes adjustable in increments each year. These loans give homeowners the chance to have a lower interest rate with time to gain equity before the interest rate adjusts. With ARMs, rate locks can be as long as 10 years, giving buyers stability along with extra cash each month. You’ll have lower monthly mortgage payments because of the low initial rate. ARMs are perfect for buyers who plan to move, relocate, or expand their family in the future, or expect income to rise in less time than the ARM term.

Tips to avoid paying closing costs

Once you believe that you have found the right home and have provided your down payment, you are likely to deal with closing costs. These fees usually include house appraisals, home inspections, loan processing fees, and title searches. There are some ways that you can avoid paying these closing costs. First off, ask the seller to pay the closing costs. Most sellers will not object to paying these fees, especially if there is an urgency to sell the house. Check local HUDs too, they can help you get assistance in covering closing costs.

Finally, talk to one of the mortgage lending experts at TDECU. Credit unions, like TDECU, have several creative products that minimize closing costs.

We want to help you get into your new home

TDECU offers you the lowest mortgage rates possible. We have the right option to meet your new home purchase or refinancing needs. Find one lower and we’ll pay you $250*! We also have a number of mortgage calculators to help you understand the affordability of your dream homeCall to talk to a Mortgage Advisor today at 877-774-2657.

We look forward to working with you!

Download home financing road map

* We require a copy of the Loan Estimate and Closing Disclosure from the competitor for comparison purposes in order to receive the $250 if we can't meet or beat your qualified rate. Offer cannot be combined with any other TDECU offer

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