First Horizon Mortgage: A Comprehensive Guide to Home Loans

First Horizon Mortgage, a subsidiary of First Horizon Bank, offers a wide range of home loan options to meet the diverse needs of borrowers. This guide provides comprehensive information on First Horizon Mortgage, including their services, loan types, eligibility criteria, and more.

About First Horizon Mortgage

First Horizon Mortgage is a reputable mortgage lender with a long history of serving the financial needs of individuals and families. As a subsidiary of First Horizon Bank, they leverage the bank’s financial stability and expertise to offer competitive rates and personalized service.

• Established History: First Horizon Mortgage has a long history of providing reliable mortgage solutions, building trust and credibility among borrowers.
• Strong Financial Backing: Backed by First Horizon Bank, a well-established financial institution, First Horizon Mortgage offers financial stability and security.
• Wide Range of Loan Products: They offer a variety of loan types, including conventional, FHA, VA, USDA, and jumbo loans, catering to different borrowers’ situations and needs.
• Personalized Service: First Horizon Mortgage emphasizes a personalized approach, providing dedicated loan officers to guide borrowers through the process.
• Digital Convenience: They offer online tools and resources to simplify the mortgage application and management experience.

First Horizon Mortgage Services

• Purchase Loans: First Horizon Mortgage provides financing for new and existing home purchases, offering various loan options to meet different affordability levels.
• Refinance Loans: They offer refinancing options to help borrowers lower their interest rates, shorten their loan term, or access cash from their home equity.
• Home Equity Loans: First Horizon Mortgage provides home equity loans and lines of credit for home improvement projects, debt consolidation, or other financial needs.
• Construction Loans: They offer financing options for building a new home, covering construction costs until the project is completed.
• Mortgage Insurance: First Horizon Mortgage provides mortgage insurance to protect lenders against potential losses in case of default.

First Horizon Mortgage Loan Types

First Horizon Mortgage offers a variety of loan types to cater to diverse borrowing needs. Here’s a breakdown of their key loan products:

Conventional Loans

• Fixed-Rate Mortgages: These loans offer a fixed interest rate for the entire loan term, providing predictable monthly payments and protection against interest rate fluctuations.
• Adjustable-Rate Mortgages (ARMs): These loans have an introductory fixed interest rate for a set period, after which the rate adjusts periodically based on market conditions. ARMs can offer lower initial payments but carry higher interest rate risk in the long run.

Government-Backed Loans

• FHA Loans: These loans are insured by the Federal Housing Administration (FHA) and are designed for borrowers with lower credit scores and down payments. They offer more lenient eligibility requirements and lower upfront costs.
• VA Loans: These loans are guaranteed by the Department of Veterans Affairs (VA) and are available to eligible veterans, active-duty military personnel, and surviving spouses. VA loans offer favorable terms, including no down payment requirement and lower interest rates.
• USDA Loans: These loans are backed by the United States Department of Agriculture (USDA) and are designed to promote homeownership in rural areas. USDA loans offer low interest rates and often require no down payment.

Jumbo Loans

• Jumbo Loans: These loans exceed the conforming loan limits set by Fannie Mae and Freddie Mac. They are typically used for high-value properties and may require stricter eligibility criteria.

First Horizon Mortgage Eligibility Requirements

To qualify for a mortgage from First Horizon, borrowers generally need to meet certain eligibility criteria, including:

• Credit Score: A good credit score is essential for securing a favorable mortgage rate. The minimum credit score requirement varies depending on the loan type and lender’s specific criteria.
• Debt-to-Income Ratio (DTI): Lenders assess your DTI to determine your ability to manage monthly payments. A lower DTI generally improves your loan approval chances.
• Income Verification: Lenders will verify your income through documents such as pay stubs, tax returns, and bank statements.
• Down Payment: The required down payment varies depending on the loan type and lender’s guidelines. For conventional loans, the minimum down payment is typically 3%, but it can be higher for other loan types.
• Assets: Lenders may require proof of sufficient liquid assets to cover closing costs and other expenses related to the mortgage.
• Property Appraisal: The lender will order an appraisal to determine the fair market value of the property you’re purchasing or refinancing.

First Horizon Mortgage Rates and Fees

First Horizon Mortgage’s interest rates and fees can vary based on factors such as:

• Loan Type: Different loan types carry different interest rates and fees.
• Credit Score: Borrowers with higher credit scores typically qualify for lower interest rates.
• Loan Amount: Larger loan amounts may have slightly higher interest rates.
• Loan Term: Shorter loan terms generally have higher interest rates but lower overall interest costs.
• Current Market Conditions: Interest rates are influenced by overall economic conditions and market trends.

It’s important to compare rates from multiple lenders to ensure you’re getting the best possible deal. First Horizon Mortgage offers a rate quote tool on their website to provide an initial estimate of potential interest rates.

First Horizon Mortgage Application Process

The mortgage application process with First Horizon typically involves the following steps:

• Pre-Approval: Getting pre-approved for a mortgage can help you understand your borrowing capacity and streamline the home-buying process.
• Application: Submit a complete mortgage application with all necessary documentation.
• Credit and Income Verification: The lender will verify your credit history and income to assess your eligibility.
• Property Appraisal: An appraisal will be conducted to determine the fair market value of the property.
• Loan Underwriting: The lender will review your application, financial documents, and appraisal to make a final loan decision.
• Closing: Once the loan is approved, you’ll attend a closing meeting to sign the final loan documents and finalize the transaction.

First Horizon Mortgage Customer Service

First Horizon Mortgage prioritizes customer service and provides various channels for borrowers to access support:

• Loan Officers: Each borrower is assigned a dedicated loan officer to guide them through the mortgage process.
• Online Resources: First Horizon Mortgage offers a comprehensive website with resources, calculators, and FAQs to answer common questions.
• Phone Support: They provide phone support for assistance with application processes, account management, and other inquiries.
• Customer Reviews: Reviewing customer reviews and testimonials can provide insights into the experiences of previous borrowers with First Horizon Mortgage.

Pros and Cons of First Horizon Mortgage

As with any mortgage lender, First Horizon Mortgage has its advantages and disadvantages. Here’s a summary of the pros and cons to consider:

Pros

• Established Reputation: First Horizon Mortgage is a reputable lender with a long history of providing reliable mortgage solutions.
• Financial Stability: Backed by First Horizon Bank, they offer financial strength and security.
• Variety of Loan Products: They offer a wide range of loan types to cater to diverse borrowing needs.
• Personalized Service: First Horizon Mortgage emphasizes a personalized approach with dedicated loan officers.
• Digital Convenience: They offer online tools and resources for a streamlined mortgage experience.

Cons

• Limited Availability: First Horizon Mortgage operates in a limited number of states, so their services may not be available in all areas.
• Potential for Higher Rates: While their rates are generally competitive, they may not always offer the absolute lowest rates compared to other lenders.
• Limited Branch Network: First Horizon Bank has a relatively smaller branch network compared to other large national banks, which may be a factor for some borrowers.

Alternatives to First Horizon Mortgage

If First Horizon Mortgage doesn’t meet your specific needs, you can explore other reputable mortgage lenders, including:

• Bank of America: A large national bank with a wide range of mortgage products and services.
• Wells Fargo: Another major national bank offering competitive mortgage rates and a comprehensive online platform.
• Chase: A large financial institution with a strong presence in mortgage lending, providing various loan options and digital convenience.
• Rocket Mortgage: A leading online mortgage lender known for its streamlined digital application process and fast closing times.

Conclusion

First Horizon Mortgage is a reputable lender that offers a range of home loan options, personalized service, and digital convenience. Their financial stability and established history provide borrowers with confidence and security. However, it’s crucial to compare rates and terms from multiple lenders to ensure you’re getting the best possible deal.

Before choosing a mortgage lender, carefully consider your individual needs, credit score, debt-to-income ratio, and financial goals. By comparing options and understanding the pros and cons of each lender, you can make an informed decision that aligns with your financial situation and homeownership aspirations.