Your First Home

Get Moving in 7 Simple Steps with BKCO Mortgage!

 

Buying your first home is an exciting milestone. It’s much more than just a house - it’s about finding a place to create memories and enjoy life, and getting the right mortgage for your unique situation is easy when you’re working with BKCO Mortgage. Our straightforward mortgage process will take the stress out of homebuying and get you into your new home in just seven steps.

SEE LOAN OPTIONS

Step 1: Let's Talk!

We offer many programs geared to new home buyers such as FHA loans, VA mortgages, and conventional loans. Our Mortgage Loan Originators (MLOs) understand the excitement and stress of buying your first home, and they have years of experience in guiding you to a mortgage that fits your lifestyle.

 

Step 2: Pre-Approval

Being pre-approved gives you the negotiating power you may need, plus it lets the seller know that you are already approved and serious about purchasing a home. With our Automated Underwriting process, our loan consultants are usually able to pre-approve your loan on the spot or within 24 hours.

 

Step 3: Make an Offer

Now that you know how much house you can afford, it’s time to start your search! Once you find that perfect match, make your offer. Your agent will present an offer to the homeowners that includes a proposed purchase price and any established contingencies.

 

Step 4: Application

Just like your real estate agent helped you through your home search, your Mortgage Loan Originator will guide you through the mortgage application process, either online or in person. You and your realtor will provide your MLO with the home purchase contract and any additional information needed to underwrite the home loan.

 

Step 5: Verification

Once you’ve applied, we’ll verify your income, employment and assets. Our technology gives you a secure way to provide your information without faxing, scanning or mailing documents. Provide your Social Security Number and bank information, and we’ll validate your income, employment and assets almost instantly online.

 

Step 6: Underwriting

The information from your application goes through a verification process to ensure your debts and income match the information provided. In addition, an appraisal is ordered to confirm the value of the home, and a title search is done to ensure there are no problems with ownership of the property such as outstanding tax liens, judgments, additional mortgages or owners.

 

Step 7: Buy and Close

Your MLO will work with any pertinent parties, including escrow agents, lawyers, etc., to close your loan as quickly as possible. Where you live will determine any additional waiting periods or closing processes, but all will be streamlined so that you’re prepared and ready to accept the keys to your new home. Congratulations!

*Not all loans are alike; as such, this simplified version of our process may not encompass every step of every loan. Additional documents may be required based on your circumstances.

Loan Options

Conventional Home Loan

If you have managed your credit wisely, then you may qualify for a conventional mortgage with a lower interest rate. You can pay as little as 3% for your down payment, and once you've paid 20% of your loan (AKA 80% Loan-To-Value), your mortgage insurance (which increases your monthly payment) goes away. It’s time to reap the rewards of your financial foresight!  

Available Options:
ARM: 5, 7 and 10-year   
Fixed-Rate: 10- to 30-year

Jumbo Loan

If you're buying in a high-cost area or building a custom home, you may need a jumbo loan. These mortgages are available to qualifying borrowers who want to finance properties from $417,000 up to $3 million. Jumbos come with flexible rates and terms. 

 Available Options:
 ARM: 5, 7, 10-year                 
 Fixed-Rate: 15, 30-year 

VA Loan

The Veterans Administration (VA) offers qualified veterans, active duty military and your family members many benefits to get into your first home. First-time homebuyers may not need a down payment, allowing you to get into a home without years of saving. You're also exempt from mortgage insurance, lowering your monthly payment. And lastly, Basic Allowance for Housing (BAH) can be counted toward income qualifications, increasing the amount of income you claim. 

 Available Options:
 ARM: 5-year
 Fixed-Rate: 15, 25, 30-year

USDA Loan

A United States Department of Agriculture (USDA) rural loan won’t limit your home choices to a farm. In some cases, properties zoned “rural” are just a few miles away from the nearest city. USDA loans don't require a down payment and offers easier credit qualification, which makes them very attractive to first-time homebuyers. You can save your cash to furnish your first home, save for life's expenses, etc. 

Available Options:
Fixed-Rate: 30-year
Income and property restrictions apply. 

FHA

"The Federal Housing Administration (FHA) offers loans with as little as a 3.5% down payment, which are pretty popular among many first-time homebuyers. They aren't as strict on requirements like credit, which makes it easier to qualify. They do require mortgage insurance which will increase the monthly payment. Another great plus: If a family member wants to offer you money for your downpayment as a gift, this loans allows for it.  

Available Options:
ARM: 5 year
Fixed-Rate: 15, 25, 30-year

Buy a Fixer Upper

Some people can’t resist the allure of a fixer-upper, even if it's your first home. They're charming, cute and you can make them your own without having to build from the ground up. A Federal Housing Administration Rehabilitation loan (FHA 203k) makes it easy for borrowers to afford a new home—and its renovations.

 Available Option:
 Fixed-Rate: 30-year 

Things to Consider

If you like to think long-term and carefully manage your money, you'll appreciate a fixed-rate mortgage. A fixed-rate loan keeps everything, with your interest rate locked from the start. Your payments will only change if you maintain an escrow account for taxes and homeowner’s insurance—and only if these costs change. Many of our loan programs offer different term lengths, ranging from 10- to 30-year loans.

 

If you’re planning to sell or refinance your first home in five to 10 years or if you want low monthly payments to start, consider an adjustable-rate mortgage (ARM). ARMs start with a lower rate than a fixed-rate loan, but their rates are subject to market fluctuations after the initial fixed period.