Home Loan Terms Every Texan Should Understand
                     
Entering the world of homeownership is 
an exciting milestone, but for 
first-time buyers loan in Texas, it 
can also feel overwhelming. 
Understanding the key terms associated 
with Texas First-Time Home Buyer Loans 
is critical to making confident, informed 
decisions. Here’s a quick guide to the 
most important terms you’ll encounter 
along the way:
Down Payment
What It Means: The upfront payment 
made toward the home’s purchase 
price, usually a percentage of the total 
cost.
Why It Matters: The size of your down 
payment affects your loan approval 
chances, interest rate, and overall 
affordability.
Mortgage
What It Means: A home loan from a 
lender that you repay over time with 
interest.
Why It Matters: Knowing your mortgage 
options helps you choose the best loan 
for your budget and goals.
Interest Rate
What It Means: The percentage 
charged on your loan balance by 
the lender.
Why It Matters: Even a small 
difference in interest rate can 
significantly affect your total 
repayment over time.
Closing Costs
What It Means: Fees required to 
finalize the purchase, such as 
appraisal, title search, and lender 
fees.
Why It Matters: These can add 
up, so it’s important to budget 
for them early in the process.
Pre-Approval
What It Means: A lender’s preliminary evaluation of your credit and finances to 
determine how much you can borrow.
Why It Matters: Getting pre-approved helps you understand your price range and 
makes you a more attractive buyer.
PMI (Private Mortgage Insurance)
What It Means: Insurance required when your down payment is less than 20% of the 
home’s price.
Why It Matters: It protects the lender—but it’s an added monthly cost you’ll need to 
factor into your budget.
Fixed-Rate vs. Adjustable-Rate Mortgage (ARM)
What It Means: Fixed-rate loans have the same interest rate for the life of the loan. 
ARMs have an initial fixed period, then rates can change.
Why It Matters: The best choice depends on your financial situation, future plans, and 
market trends.
Let Aliton Finance Guide You Home
Finding the right residential or commercial property in Texas doesn’t have to be 
complicated. Whether you're a first-time buyer or a seasoned homeowner, Aliton
 Finance Texas offers personalized Texas First-Time Home Buyer Loan solutions 
tailored to your unique needs.
Contact us today for a free consultation and discover the best financing options to 
make your Texas homeownership dream a reality.
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