Buying a home is one of the most exciting, and important, decisions you can make. But if you’ve never done it before, it can feel overwhelming. The good news? You don’t have to figure it out alone.
At US Community Credit Union, we’re here to guide you through the process with clarity, confidence, and support, from learning how mortgages work to finally unlocking your front door.

What Is a Mortgage?

A mortgage is a loan you use to purchase a home. You borrow money from a lender and repay it, with interest, over a set period of time, usually 15 to 30 years. Your home acts as collateral, meaning the lender can take ownership if you stop making payments.

Key Mortgage Terms to Know

Understanding a few core terms can help you feel more prepared:

  • Principal: The amount you borrow
  • Interest: The cost of borrowing the money
  • Escrow: Money set aside by your lender to cover property taxes and homeowners insurance
  • Term: The length of your mortgage, often 15 or 30 years
  • Down Payment: The upfront cash you pay at closing, often 3% to 20% of the home’s price

Common First-Time Buyer Myths, Debunked

Don’t let misunderstandings keep you from taking the first step toward homeownership. Here are a few common myths and the truth behind them:

  • Myth: “I need 20% down to buy a home.”
    Truth: Many loans only require 3–5% down. First-time buyer programs can help reduce this even more.
  • Myth: “I must have perfect credit.”
    Truth: Credit unions like USCCU work with a range of credit profiles, and help you improve yours if needed.
  • Myth: “I can’t afford closing costs.”
    Truth: Some programs offer closing cost assistance, and sellers may contribute during negotiation.
  • Myth: “Renting is always cheaper.”
    Truth: In many markets, a mortgage payment can be similar to or lower than rent, and builds equity over time.

How Do You Get a Mortgage?

Getting a mortgage starts with pre-approval. This step helps you understand how much home you can afford and shows sellers that you’re a serious buyer.

During pre-approval, your lender will review:

  • Your income and employment
  • Your credit score
  • Your existing debt and monthly obligations

Once you’re pre-approved and choose a home to purchase, you’ll work with your lender to finalize your loan, choose the right rate type, and move toward closing day.

Documents You’ll Need to Apply for a Mortgage

Being prepared with the right paperwork helps speed up your loan approval process. Here’s what you’ll typically need to gather:

  • Recent pay stubs (last 30 days)
  • W-2s or 1099s from the past two years
  • Tax returns (2 years)
  • Recent bank statements (checking, savings, retirement)
  • Government-issued ID (driver’s license, passport)
  • Social Security number
  • List of current debts (car loans, student loans, credit cards)

USCCU Tip: Ask us for a custom checklist based on your loan type and situation. We’re happy to walk you through it.

Understanding Your Budget

How Much House Can You Afford?

Don’t base your budget just on what you qualify for, base it on what comfortably fits your lifestyle. Include expected monthly costs like:

  • Mortgage payment
  • Property taxes
  • Homeowners insurance
  • Utilities and maintenance

Start Saving for a Down Payment

It’s a common myth that you need 20% down to buy a home. In reality, many first-time buyers qualify for loans with as little as 3–5% down. Talk to our team to explore your options.

Fixed-Rate vs. Adjustable-Rate Mortgages

Once you understand your budget and savings goals, the next step is choosing a mortgage type that fits your financial situation.

Fixed-Rate Mortgage

A fixed-rate mortgage keeps the same interest rate throughout the entire life of your loan. That means your monthly payments stay consistent.

  • Great for members who want predictable payments and plan to stay in their home long-term.

Adjustable-Rate Mortgage (ARM)

An adjustable-rate mortgage starts with a lower rate for a set period, then adjusts based on market conditions.

  • A good option if you plan to move, refinance, or want to take advantage of lower early payments.

USCCU Tip: Not sure which option fits your plans? Our mortgage specialists can walk you through both and help you decide with confidence.

10 Steps to Buying Your First Home

Use this checklist to help you stay on track from pre-approval to move-in day:

  1. Check your credit score and address any issues
  2. Set a budget based on your income, lifestyle, and comfort zone
  3. Start saving for your down payment and closing costs
  4. Get pre-approved for a mortgage with USCCU
  5. Find a real estate agent who understands your needs
  6. Start house hunting based on your approved price range
  7. Make an offer when you find the right home
  8. Get a home inspection
  9. Finalize your mortgage and close on your loan
  10. Move in and celebrate your new home!

Why Choose USCCU for Your Mortgage?

When you finance through US Community Credit Union, you’re not just another application, you’re a member we know and support.

Here’s what makes our mortgages different:

  • Competitive rates that help you save
  • Local decision-making from a team that lives where you live
  • Flexible terms and loan options tailored to your goals
  • Trusted, personal service from a credit union that puts people first

Learn more at: usccu.org/loans/mortgage

Your Homeownership Journey Starts Now

Whether you’re buying your first home, upgrading, or refinancing, we’re here to help every step of the way.

Call us at 615-256-8712 ext. 3254 or stop by your local branch to meet with a mortgage specialist, no pressure, just honest guidance.

Start Your Mortgage Application

*All loans are subject to approval. A hard credit pull from US Community Credit Union will be required during the mortgage loan process. Must maintain a credit score of 620 or higher throughout the loan process. Rates and terms based on individual’s credit score and qualifications. Rates and terms subject to change. Home value is based on US Community Credit Union verified source such as an appraisal, which may be required. Borrower pays appraisal fee. Property insurance will be required, including flood insurance if applicable. Early loan termination fees may apply. Standard underwriting guidelines apply. Property must be located in the state of Tennessee. Membership required. Terms and conditions may apply. Contact the credit union for any questions regarding mortgage loans.

Equal Housing Lender. NMLS # 363210