First Time Homebuyer

Relax. It's time to get moving.

Buying your first home can be scary and stressful. As a First Time Homebuyer in South Carolina or North Carolina, you are sure to have questions about the process and what you need to do. You may be wondering about down payments, interest rates or how your Mortgage payment is calculated. You won’t have to worry when you choose Founders Federal Credit Union for buying your first home. We are here to guide you through the process.

Our experienced Mortgage Loan Officers can help you take the first step in purchasing a home. For many, this first step is understanding whether or not it is the right time for you to purchase a home. Our Mortgage Loan Officers can review your current financial situation and help you decide if you should purchase a home or continue saving money toward the purchase of your first home.

If you decide it is the right time to buy, securing your Mortgage with Founders will give you personalized service without fear or stress. Our qualified Mortgage Loan Officers will guide you through the Mortgage process to help you apply for your Loan, assist you with any questions you may have during the process, and help you get one step closer to being a homeowner. Call us at 1-800-845-1614 to get started.

Learn Mortgage Vocabulary

Mortgage Vocabulary

  • Appraisal

    Appraisal:

    A home appraisal is a detailed summary of how much a home is worth and compares the home to similar properties in the same area.

  • Closing

    Closing:

    The closing is typically held at an attorney’s office and simply means the completion of the transaction involving the sale or exchange of real estate.

  • Closing Costs

    Closing Costs:

    Closing costs are the fees required to pay at closing. These cover any fees
    associated with the sale of the home like title and settlement services, title insurance, appraisal, lender fees and any other fees carried out during closing. These fees range anywhere from 3% - 5% of the purchase price of your home. These fees may also be called Settlement Fees.

  • Down Payment

    Down Payment:

    Your down payment is the amount of money you are required to pay in cash when you close your mortgage loan.

  • Escrow Account

    Escrow Account:

    An escrow account is a separate account held in a borrower’s name to pay property taxes and insurance premiums. Flood insurance, if required, must also be escrowed.

  • Flood Certification

    Flood Certification:

    A flood certification indicates if the property is located within a designated flood zone. If the property is within a flood zone, the lender will require flood insurance.

  • Home Inspection

    Home Inspection:

    A home inspection examines the safety of the structure and mechanical condition of the home and is required with our First Time Homebuyer Program.

  • Insurance

    Insurance:

    Homeowner’s insurance provides protection against losses and damages to your home and is required if you owe a mortgage on your home. Your homeowner’s insurance is typically paid to an escrow account.

  • Interest

    Interest:

    The fee you pay to borrow money.

  • Interest Rate

    Interest Rate:

    The interest rate is a percentage of the loan charged to the borrower. Your interest rate is determined at current market conditions, and reviewing your credit score, down payment and the type of mortgage you choose.

  • Loan Term

    Loan Term:

    The loan term is the amount of time you have to pay off your mortgage loan. The First Time Homebuyer Program is a 30 year term.

  • Origination Fee

    Origination Fee:

    Origination fees are additional fees paid to the lender to initiate, create and complete the mortgage loan. The mortgage loan process includes many layers of paperwork submission, review and completion to ensure the mortgage loan can be fulfilled to a borrower. With our First Time Homebuyer Program, Founders will take care of all the paperwork without an origination fee.

  • Owner’s Title Policy

    Owner’s Title Policy:

    An Owner’s Title Policy protects the buyer if a covered titled problem arises and is purchased for a one-time fee at closing and lasts for as long as you have interest in the property.

  • PMI

    PMI:

    PMI stands for Private Mortgage Insurance and is an added fee paid to the lender which protects the lender in case you don’t make your mortgage payments. Since Founders First Time Homebuyer Program doesn’t require PMI, you will save money each month.

  • Points

    Points:

    Also known as “discount points,” points are paid directly to the lender at closing in exchange for a reduced interest rate. This is also called “buying down the rate,” which can, in turn, lower your monthly mortgage payments. A point is equal to 1% of your mortgage amount (or $1,000 for every $100,000).

  • Principal

    Principal:

    The principal is the amount borrowed or amount owed on a loan. This is separate from the interest.

  • Property Taxes

    Property Taxes:

    Property taxes are the amount of money paid annually to your local government. Your property taxes are typically paid to an escrow account.

  • Recording Fees

    Recording Fees:

    The recording fee is money paid to record the deed and security instrument.

  • Settlement Charges

    Settlement Charges:

    Also known as Attorney Fees, settlement charges are paid at closing and typically paid to the Attorney completing the legal transaction.

  • Survey

    Survey:

    A survey is a drawing of the property completed by a licensed surveyor which contains a measurement of the property and includes locations of all buildings and boundaries.

  • Tax Service Fee

    Tax Service Fee:

    The tax service fee is part of the closing costs and paid to a third party to manage the disbursements of the escrow account to pay property taxes.

  • Termite Inspection

    Termite Inspection:

    A termite inspection, or CL-100 in South Carolina, is required by the lender and identifies any repairs or treatment needed due to termite damage.

  • Title Insurance

    Title Insurance:

    Title insurance protects the lender and covers the loss of the property due to legal defects. This is required if the property has a Mortgage.

Rates and terms vary depending on the type of loan, loan to value ratio, credit evaluation and underwriting requirements. APR is subject to increase or decrease. Pay only 3.77% APR on your first mortgage loan with 360 monthly payments of $277.98 for each $60,000.00 borrowed. The payment can increase to $475.93 in the 8th year of the loan. Flood, property insurance, and taxes, if applicable, are not calculated in the payment example. Actual payment obligation will be greater if an escrow account is required. All loan programs, rates, terms, and conditions are subject to verification of information, your credit history, the location and type of property and other factors as determined by the Credit Union and may change at any time without notice. 3% down payment and income verification required. PMI=Private Mortgage Insurance. Offer for no origination fee is only available for specific mortgage products for first time home buyers.
 

Auto Loans as low as*

1.90%
APR

Credit Cards as low as*

8.35%
APR

Personal Loans as low as*

7.90%
APR

HELOC as low as*

4.00%
APR

Rates, terms & conditions

 

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