Click n Close Mortgages

First Time Home Buyer Process
with Click n’ Close Mortgages

Click n’ Close Mortgages can make your first time
buying a home fast, simple, and secure.

Apply Now

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“I’m buying a house. What should I do?”

First of all, congratulations! Homeownership is an amazing, exciting journey.

But, buying a house for the first time can also be stressful and confusing. Preparation is key to making your purchase as smooth as possible. Don’t worry; Click n’ Close is here to help! If you see any unfamiliar terms in the steps below, refer to our mortgage glossary at the end of the page.

Understanding Mortgages and Mortgage Rates

Mortgages typically schedule you to repay your home on either a 15-year or 30-year schedule. These payments include much more than principle and interest; be wary of mortgage calculators as they only account for down payments and interest rate. Your monthly payment will also include escrows which are not included in mortgage calculators. Escrows include the county property taxes paid annually, your homeowner’s insurance, and flood insurance if you are in a flood zone.

Your mortgage loan will also have up-front costs which can be paid with cash at closing or financed into the loan. The option will depend upon the loan chosen and what fits your situation. These costs include pre-paid escrow, appraisal, lender fees (origination, administration, processing or underwriting), credit reports, flood certification, title fees, recording fees, transfer taxes*, cost for interest rate chosen*, and up-front mortgage interest*.

*If applicable

Mortgage Rates

Mortgage rates are the interest you pay on a loan but each lender has their own approach to setting rates. Be wary of “the lowest” rates or “no cost” programs because lender fees are often built in. You will need to determine if you can afford a higher upfront cost or down payment paired with low interest rate or a low down payment with a higher rate. Your mortgage will be set up based off what you can afford. A great option for borrowers is buying down the rate which entails paying some interest up front in exchange for a lower interest rate over the term of your loan.

Fixed Rate Mortgage vs Variable or Adjustable Rate Mortgage

Some mortgage rates are fixed, meaning you will be charged the same rate of interest for the entire term of the loan. This helps you plan more accurately for your long-term and monthly expenses. Fixed rates are predictable principal and interest rates, giving you peace of mind.

To make matters even more confusing, variable rate mortgages have a fixed rate period, subject to adjustment each year after a fixed period. Typical fixed rate periods are 5 or 7 years but can range up to 10 years. The rate adjustment period is the frequency with which rates are changed after the initial fixed rate period is over. Often, the rate adjustment period is one year, allowing you plenty of time to refinance if the rate happens to increase. Adjustable rates offer a high risk, high reward option depending on your goals.

Down Payment Assistance and Earnest Money Deposit

Your down payment is money you pay upfront to prove your financial ability to buy the home and provides you with equity for the loan. Three percent of the purchase price is typically the minimum required for a down payment. If you choose to go through a down payment assistance program, we offer down payment assistance.

Sometimes, the seller wants further proof you are ready to purchase (besides pre-approval) by requesting an earnest money deposits. Earnest money deposits are a financial promise to the seller that you are serious about buying their home, but might need more time to decide what type of loan you need. Earnest deposit is typically a personal check from you, the buyer, and is sometimes never cashed. If the check is cashed, the money will be shown as a credit to you at closing and will offset either part of the down payment or closing costs.

Contact us today for information about down payment assistance or earnest money deposits!

Use the Click n’ Close Mortgage Calculator
to Find Your Monthly Payment

Now that you know all about mortgage rates and down payments,
use our mortgage calculator to estimate your monthly payment!

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Types of Home Loans

Want to learn more about types of
mortgage loans?

Bear in mind, some loan programs are more ideal for first timers than others. We recommend checking out FHA, VA or USDA loans if they are applicable to your scenario. Check out our comprehensive guide to all your home loan options!

Loan Types

Your Home Buying Journey

Home buying can be confusing but we want to understand your situation and empower you to pick the fast, simple and secure mortgage process.

Now that you’ve got all the info, the next step is applying for a mortgage. The Click n’ Close digital home buying process makes getting your loan fast, simple, and secure. The digital process saves you time and puts you in a home faster.

Apply Now

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Glossary

Is your brain overwhelmed from reading our finance jargon? Fear not, we have compiled a handy glossary of mortgage terms for your reference!

Adjustable Rate Mortgage (ARM)

A mortgage with a fixed interest rate for a set period of time, typically one, three or five years with a low initial rate which will adjust based on an index at set periods after the first period. For example, a 5/1 ARM will have a fixed rate for the first years and be subject to change once annually thereafter.

Appraisal

An estimated value of the property based on physical inspection by a licensed professional also comparing the property to similar houses sold recently.

Buying Down

A loan transaction reducing your monthly payment amount for a mortgage either for the entire term or a few years by paying higher fees upfront.

Cash to Close

Readily available cash the borrower uses to pay closing costs when getting a mortgage.

Closing Costs

Money paid by the borrower and seller with the closing of a mortgage loan including origination charge, discount points and fees required for third party services, taxes and government recording fees.

Down Payment

The amount of the purchase price that the buyer is responsible for upfront.

Earnest Money

A sum of money a borrower provides to show good faith when offering to buy a home from a seller.

Escrow

The borrowers are required to set aside a percentage of the yearly taxes to be held by the lender to ensure you can pay your homeowner’s insurance and property taxes which fluctuate year over year due to your county’s tax assessor updating property taxes.

First Adjusted Payment

The payment after the end of the initial fixed-rate period which reflects the new principal and interest payment due each month on an adjustable rate mortgage.

Fixed Rate Mortgage

A mortgage with an interest rate, principal and interest monthly payment amount that remains the same for the life of the loan.

Homeowner’s Insurance

An insurance policy that protects the property against damage or losses through combining liability coverage and hazard insurance.

Interest Rate

The amount of money the borrower owes a lender for borrowing funds over a period of time expressed as a percentage rate of the loan amount.

Monthly Payment

The amount of principal, interest, taxes and insurance and escrow if it’s included in your loan payment due each month.

Principal

The amount borrowed or remaining unpaid balance of a loan not including unpaid accrued interest; refers to the portion of the monthly payment that reduces the remaining amount on the loan.

Pre-Approval

In the form of a letter, this status shows a mortgage applicant has been pre-approved for a specified mortgage amount based on preliminary review of credit, assets and income.

Private Mortgage Insurance

Insurance written by a private company protecting the mortgage lender against the loss of a mortgage default.

Underwriting

Analyzing risk, ensuring ability to pay and confirming the borrower and property are eligible for a mortgage on a specific property for specific borrowers.

Title Insurance

Insurance contract made with the title insurance company agreeing to pay the insured party for losses relating to claims against title.

Title

A document confirming current ownership of a property plus the history of previous owners.

Use our online
mortgage application.

Apply Now