Buying a home can be an exciting and complex process, which is why we strive to simplify the process and provide our members with the education and guidance to make informed decisions. Whether you're a first-time homebuyer or an experienced homeowner, we have a variety of mortgage options, from traditional fixed and adjustable loans to FHA and VA home loans for eligible members. Contact us today to learn more about how we can help you start your home journey with confidence.
Get Prequalified
Or Call Us at (877) 670-5860
It’s your first home, but it’s not our first mortgage. Count on us to help you understand each stage of the process.
Home ownership offers tax benefits*, builds your credit, and allows you to say goodbye to nuisances such as rent increases and canceled leases. And, when you own your home, you build home equity as you pay your mortgage—a smart way to prepare for the future, today.
From terms like "amortizing" and "escrow" to "qualifying" and "closing costs," home buying seemingly comes with its own language. We understand it's a complex endeavor, so we support first-time homebuyers by offering:
Follow these steps to make sure you are on the right path:
Here are some terms you'll encounter throughout the home-buying process:
Annual Percentage Rate (APR): The yearly rate of interest for your loan. The APR can be variable or non-variable.
Debt-to-income ratio: The percentage of your monthly income that you spend on monthly debt payments. Mortgage program guidelines vary, but a good rule of thumb is to keep your total debt level at or below 36% of your gross monthly income.
Down-payment: The initial payment you make when purchasing a home.
Fees: The homebuyer is generally expected to cover the many costs associated with the purchase process. "Fees" is a catchall term that can include costs for an appraisal of the home, a credit report on the borrower(s), title search, attorney's fees, transfer taxes, recording the deed, property taxes, and much more. Many times, fees are negotiable.
Interest rate: The percentage of your loan amount the lender charges to borrow money. Interest rates are typically based on current market conditions, your personal credit score, your down payment amount, and the type of mortgage chosen. Check today's rates1
Loan term: The period 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.
Monthly mortgage payment
Your monthly mortgage payment is typically made up of four parts:
- Principal. The part of your payment that reduces the outstanding balance of your mortgage.
- Interest. The part of your payment that pays your lender for use of the borrowed funds.
- Taxes. The portion of your payment that pays the property taxes charged by your local government.
- Insurance. The part of your payment that pays for homeowners or hazard insurance, which protects against losses from property damage.
Depending upon your property location, property type, and loan amount, you may have other monthly or annual expenses such as mortgage insurance, flood insurance, or homeowner association fees.
Origination charge: A fee that lenders and brokers receive for overseeing the loan process, from application status to completion. The charge includes document preparation, underwriting costs, and other fees.
Points: Fees paid to the lender or broker for the loan. One point equals 1% of your mortgage amount.
PMI (Private Mortgage Insurance): Insurance that covers borrowers who offer a down-payment less than 20% of the home's value. PMI protects the lender if the borrow fails to pay back the loan.
Use our payment calcuLator to estimate monthly payments and try out different scenarios based on your income specifics.
Learn more about the different loans and program we offer here.
TIP: We know that some members prefer to have information in their hands and not on a screen. Download our Free Home Buyer's Guide for a more condensed, printable version.
Visit our Loans and Programs area to learn about the features and benefits of different home loans to choose the right loan for you.
Want to... | Best loan for you... | It works because... |
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Have the same monthly payments for the life of the loan? | Fixed-Rate |
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Have lower monthly payments at the beginning of your loan? | Adjustable-Rate |
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Buy your home with a lower down payment? | Fixed or Adjustable |
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Buy a bigger home? | Jumbo Loan- (Fixed or Adjustable) |
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Did you know? USC Credit Union offers borrowers the option to qualify with as little as 3% down payment* on loans up to $850,000. That means that you can afford more home than you think!
We’re committed to a clear and straightforward application process so our customers understand their loans. We also provide a variety of resources to make the post-application process clear and straightforward.
Income
Before you start, have the following income information on hand:
Assets
Gather important information regarding your assets, including:
Avoid delays by submitting legible, complete documents as soon as possible.
Get started through any of these convenient ways:
Your home mortgage consultant will follow up on your application and ask for the financial and property information you’ve gathered.
Your home mortgage consultant will:
Avoid delays by submitting legible, complete documents as soon as possible, along with any required fees.
With USC Credit Union’s mortgage team by your side, home is closer than you think. Our special first-time homebuyer loan program and one-on-one guidance reduce the challenges you may experience as a first-time buyer. We want to be your lender for life!
Well done! Completing a mortgage application is no small feat. Here’s what happens next in the process. Your lender will:
You’ll need homeowners insurance to close your loan. Get competitive quotes from multiple insurance providers, including Trojan Insurance Services.
Closing or “settlement” is when you sign the final mortgage documents, and the property is legally transferred to your ownership.
Before your closing, you will have received the final figures for the transaction, which include closing costs, escrow costs and the down payment amount. If money is due at the time of signing, it’s best to obtain a cashier’s check.
Your lender will send the closing documents to your closing agent. On your closing day, review the documents carefully with your agent, then sign and date them. Some these important documents will include:
IMPORTANT TIPS:
USC Credit Union makes it easy to manage your mortgage account online. You can view your account activity, transfer funds, make payments, and more.
As a USC Credit Union member you automatically receive online statements. If you’re still receiving statements by mail, you can go paperless here. You can switch back to paper statements at any time. Online statements have all the information you see on the paper versions, and are more secure than paper statements.
TIP: Do not make big purchases, take on additional debt or make large deposits or transfers unrelated to your loan until after your closing.
Get prequalifed today and let us help you get into the home of your dreams!
Get Prequalified
Or Call us at (877) 670-5860
*USC Credit Union and its Representatives do not provide tax or legal advice. For such advice, please consult with a qualified professional.