Purchasing a home
Whether you’re a first-time homebuyer or you’ve purchased several homes, First Community Mortgage will be by your side every step of the way, from the application through closing.
We’ll make sure you fully understand rates and fees, find the option that works best for you, keep you informed throughout the process, and get your loan approved quickly with no “big bank” hassle. Plus, the attention to detail from our experienced loan professionals helps make sure there are no surprises. It’s a human approach to mortgage you can’t get with an online lender.
When you take out a mortgage loan how much you repay is determined by several factors:
- Interest Rate — This is the percentage of your loan amount we charge you to borrow money in order to buy your home. Interest rates are based on current market conditions, your credit score, down payment, and the type of mortgage you choose.
- Discount Points — Paying discount points up front is a way to lower your interest rate and your monthly payment. One point equals 1% of your mortgage amount. Points are usually tax deductible. (Consult a tax advisor on the deductibility of interest.)
- Origination Charge — This includes all charges (other than discount points) associated with completing your mortgage transaction. It covers fees, document preparation, underwriting costs, and other expenses.
- Loan Term — This is the amount of time you have to pay off your mortgage balance. Shorter loan terms typically mean higher monthly mortgage payments, but often have lower interest rates. If you pay off your mortgage balance within a shorter term, you may pay less in total interest compared to a longer-term mortgage.
The total cost of your mortgage, including all of the above, is known as the annual percentage rate (APR), which is typically higher than the interest rate. Using the APR, you can compare mortgages of the same dollar amount by considering their total annual cost.
Talk With Us
At First Community Mortgage, you’ll work with one of our experienced loan originators, who can answer your questions and help you get started. Click here to find a helpful human.