First-Time Homebuyers
Have confidence as a first-time homebuyer
Finding the perfect first home can be nerve-wracking, especially if you're a first-time homebuyer. From choosing the perfect neighborhood and best schools, to calculating how much house and down payment you can afford, it can be tough to know where to start. Let RBFCU find the right loan to help meet your personal needs and goals.
To speak to the Mortgage Department, call 210-945-3300, select option 3, then option 2.
Buying a New Home: A Quick Start-to-Finish Guide
Download our easy guide to learn about getting a mortgage and buying a home. Topics include:
- Where should you start?
- What can you afford to buy?
- How's your credit score?
- Down payment and closing costs
- Understanding your mortgage payment
What types of mortgages should I consider?
What do you take into consideration when reviewing my loan application?
Mortgages from A to Z
Here are some of the terms that you may hear during the homebuying process.
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Appraisal
Appraisals estimate the market value of a home based on comparisons with similar properties. Unlike a home inspection, the appraisal does not produce a detailed assessment of the systems or structure of the property.
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Closing
The final step in taking ownership of a purchased property. At the closing or settlement, you sign legal documents, make your own down payment and pay closing costs, at which point ownership of the property is legally transferred from the seller to the buyer.
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Discount Points
One discount point is 1% of the loan amount. These points represent interest paid up front to the lender, rather than over the life of the loan. Typically, the higher the interest rate, the lower the discount points, and vice versa.
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Earnest Money
A portion of the down payment that is placed in escrow with the real estate agent when the sales contract is accepted. The earnest money deposit indicates the buyer’s firm intention to purchase the property in question. If the contract is accepted by the seller, these funds will go towards the purchaser's down payment and closing costs.
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Private Mortgage Insurance (PMI)
If you pay less than 20% down, you’ll be asked to pay for PMI, which protects the lender in case you default on your loan. PMI is usually included in your monthly mortgage payment; the fee can be eliminated and your monthly mortgage payment reduced once you achieve 20% equity in your home. Mortgage insurance also reimburses the lender or investor for losses incurred during a foreclosure.
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Total Debt-to-Income Ratio
In traditional mortgage underwriting, the total debt-to-income ratio is used to calculate how large the monthly payments on housing expenses and other debts (like student and car loans, credit card debt, etc.) should be, based on gross monthly income. For example, if a mortgage product has a total debt-to-income ratio of 38%, the borrower’s housing expenses plus other debts should not exceed 38% of their gross monthly income.
Still have mortgage questions?
Loans subject to credit approval. Rates and terms subject to change without notice. Mortgage loans available only on property in Texas. NMLS# 583215.
