As a first-time home buyer, you have an exciting journey ahead. We know applying for your first mortgage loan and navigating a complex housing market can be daunting.  At Austin First Mortgage, we want your first home purchase to be a rewarding experience and we're here to help first-time home buyers any way we can.

Your mortgage loan originator can answer any questions you may have along the way. In the meantime, here's some practical advice to get you started on the right path to buying your first home.

Is buying a better option than renting?
There's a right time to rent and a right time to buy. Find out whether you're ready for the journey to home ownership and your first mortgage with these clear pros and cons for renting vs. buying.

How much mortgage can I afford to borrow?
Home affordability is about more than just how much you can borrow. You'll also need to consider the up-front costs of buying a house, as well as the ongoing expenses of home ownership.   Your income, credit history, the size of your down payment, and your employment and residence history are all factors in how much you can borrow. Depending on circumstances, the amount you can borrow may exceed the amount you can comfortably afford - so it pays to borrow cautiously.

What are the different types of mortgage loans?
Fixed-rate loans, ARMs, FHA loans, VA loans, Jumbo loans - the list may seem long, but it may be in your best interest to become a knowledgeable first-time home buyer and understand your loan options.

What are mortgage points?
Some home buyers get lower payments by paying a percentage of interest up front. This option, called "buying points," can lower your interest rate and monthly payments, but it may not be right for everyone.

What is a mortgage APR?
The Annual Percentage Rate helps you compare payments and total cost between mortgage offers, it's just one of the many factors to consider when shopping for a mortgage loan.

How does my credit score affect my mortgage rate?
Good payment habits and a low debt/income ratio can mean a lower mortgage rate, and if your credit score isn't what you want it to be, you can improve it over time.

What should be my down payment on a new house?

A down payment demonstrates your commitment and a larger down payment can help you secure a better interest rate - which means you'll have lower monthly mortgage payments.

What documents are part of the mortgage process?

Now is the time to get organized. As a home buyer you'll be required to prove things like how much you earn, where you've lived, monthly debts and account balances.

What happens at a mortgage closing?

Closing is the last step in the home-buying process. It's where all the parties get together to finalize the transaction by exchanging signatures, checks and ultimately, house keys.