A mortgage is a loan specifically used to buy a home. You borrow money from a bank or lender and pay it back over time with interest.

How much down payment do I need?

Typically, a 20% down payment is standard, but there are programs that allow for lower down payments. The exact amount can vary based on the loan type and lender.

What is pre-approval and why is it important?

Pre-approval is when a lender checks your financial background to determine how much money you can borrow. It helps you know your budget and shows sellers that you're a serious buyer.

PMI stands for Private Mortgage Insurance. If your down payment is less than 20%, you might need to pay PMI. It's insurance that protects the lender in case you can't pay back the loan.

How long is a typical mortgage term?

The most common term is 30 years, but there are also 15 and 20-year options.

What are closing costs?

Closing costs are fees you pay when you finalize your home purchase. They can include things like appraisal fees, title insurance, and loan processing fees.

What is homeowners insurance and why do I need it?

Homeowners insurance covers damage to your home from things like fires, storms, or theft. Most lenders require it to protect their investment.

Can I buy a home even if I have bad credit?

Yes, but it might be harder. You might get a higher interest rate or need a larger down payment.

What is an escrow account?

An escrow account holds money for property taxes and insurance. Each month, part of your mortgage payment goes into this account so when these bills are due, the lender pays them for you.

First Time Home Buyers Mortgage

First-Time Homebuyer's Guide to Buying a House in Colorado

At Citizens State Bank, we're not just a financial institution. We're a pillar of the community, deeply entrenched in the heartbeats of Ouray, Ridgway, Silverton, Naturita, and Telluride. Recognizing the aspirations and concerns of first-time homebuyers, we've tailored our Fixed Rate Conventional Mortgage to make your journey to homeownership as seamless and transparent as possible. Together, let's take the first step towards your dream home!

Navigating the Mortgage Process: A First-Time Buyer's Roadmap

The path to owning your first home can be thrilling yet daunting. At Citizens State Bank, we're dedicated to demystifying the mortgage process for you. With our unwavering commitment to education and clarity, we ensure you're well-informed at every juncture. Here's a simplified guide for first-time buyers:

Talk to Us: Meet our team to talk about what you want, how much you can spend, and any questions you have.
Get Approved First: Before looking for a house, get an approval. This helps you know how much you can spend and makes buying easier.
Look for a House: Start searching for your perfect house with your budget in mind.
Make an Offer: Like a house? Make an offer to buy it.
Check the House: Make sure the house is in good shape and find out its worth.
Finish the Loan: After giving all the needed papers, we'll set up your loan.
Closing: The special day you sign papers and get your house keys!

Decoding Your Monthly Mortgage Payment

For first-time homebuyers, understanding the components of your monthly mortgage payment can be invaluable:

Principal: The main money you borrowed for your house.
Interest: What you pay extra for borrowing the money.
Property Taxes: Money you pay to the city for things like schools and roads.
Homeowner's Insurance: Pays for damages to your house from things like fires.
Private Mortgage Insurance (PMI):: Extra insurance if your down payment is less than 20%
HOA Fees: Extra costs if your house is in certain areas. It pays for shared things like pools or

Essential Documents for First-Time Homebuyers

Streamline your mortgage application process by having these documents ready:

Proof of Income: Recent pay stubs or tax returns will suffice.
Credit History: Stay informed about your credit score as it plays a pivotal role in determining your loan terms.
Personal Identification: A valid ID for verification.
Debt Information: Details of existing debts can influence your borrowing capacity.
Down Payment: Ensure you have documentation about its source.

Begin Your Homeownership Journey with Citizens State Bank

Why choose Citizens State Bank for your first home? Because we're more than just a bank. We're your community partner, understanding the unique dreams of our fellow Coloradans. Our local teams are passionate about guiding first-time homebuyers, answering questions, and providing expert advice. Ready to embark on this significant life milestone? Reach out to Citizens State Bank today. Together, let's make your dream home a reality.

At Citizens State Bank, we proudly uphold our commitment as an Equal Housing Lender, ensuring fair and equitable lending opportunities for all.

Contact our team of First Time Homebuyer experts.

Common questions from First Time Homebuyers

Contact Our Mortgage Experts

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