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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.
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!
Types of Home Loans
Want to learn more about types of
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!
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.
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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.
An estimated value of the property based on physical inspection by a licensed professional also comparing the property to similar houses sold recently.
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.
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.
The amount of the purchase price that the buyer is responsible for upfront.
A sum of money a borrower provides to show good faith when offering to buy a home from a seller.
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.
An insurance policy that protects the property against damage or losses through combining liability coverage and hazard insurance.
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.
The amount of principal, interest, taxes and insurance and escrow if it’s included in your loan payment due each month.
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.
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.
Analyzing risk, ensuring ability to pay and confirming the borrower and property are eligible for a mortgage on a specific property for specific borrowers.
Insurance contract made with the title insurance company agreeing to pay the insured party for losses relating to claims against title.
A document confirming current ownership of a property plus the history of previous owners.