Buying a home can be an exhilarating experience but for the first-time homebuyer the process can be confusing and very overwhelming. Luckily, there are some easy steps and tips you can follow to make your dream of owning a home easier and an enjoyable experience!
- NEVER underestimate your ability to become a homeowner.
Because most people do not know what it takes to qualify for a mortgage they do not even inquire about homeownership. Getting educated on both the mortgage application as well as the home buying process will help give you a better understating of how things like credit scores and yearly income play into the success of becoming a homeowner.
- Know the Requirements.
There are many requirements that are involved with the process of obtaining a mortgage. First, take a deep breath and take one step at a time (maybe glance at step #4). The mortgage application process is lengthy and will look at things like employment history, credit scores and additional assets. But, remember Step 1., don’t count yourself out…trust the process and let your mortgage officer help guide you through it.
- Understand ALL of the expenses.
Beyond the monthly mortgage payment, homeownership will bring with it things like; property taxes, homeowners insurance, possibly private mortgage insurance and a Homeowners Association fee depending upon where you choose to live. Taking all expenses into consideration will affect the overall payment and what you can budget for the home.
- Have Patience.
It is important to know that the process can take anywhere between 30-90 days to close, even after receiving all the necessary documents, not after having the first conversation with a mortgage officer. The key is to keep a realistic outlook on the experience and know that bumps might come up on this road, and that is part of this exhilarating experience. The Mortgage Officers here at Premier Credit Union are ready to take this journey with you, side by side. If YOU are ready to start experiencing homeownership, give us a call today to Make Life Better!
- Start Saving Early
While not everyone can put down a sizeable downpayment, it’s a good idea to start saving early so that you can invest as much as you can. This will decrease your monthly payments after the purchase of your new home.
- Polish that credit score!
A higher credit score will typically decrease the interest rate that you receive. And for a purchase of this size, you want the lowest rate you can get! Making good decisions such as paying down credit cards, consolidating debt and paying off any late charges are all great first steps to achieve this. It may take time – but in the long run will be well worth it.
- Explore your options
There are a number of mortgage options for you to choose from. Everyone’s situation is different, so be aware of what may be the best one for you. Premier offers conventional mortgages, lot loans, VA loans, FHA loans, and more! With that, you should choose the term that makes you most comfortable. Terms can range from 30 years on down, with many “ARM” options that offer flexibility. Talk with your mortgage lender to make sure you get the solution that best fits your situation.
- Take advantage of FREE money
There are several first-time homebuyer grants in place for you to apply toward your downpayment or overall mortgage. These assistance programs are put in place to help people achieve the dream of homeownership. It’s free money, so why not take advantage of it? Ask what programs you may be eligible, to ensure you get the maximum amount!
- Get a pre-approval letter
This is crucial – getting this letter will show real estate agents and sellers that you are approved to purchase up to a certain amount. This will typically make the entire process go much smoother and get you out looking at homes quicker! It can sometimes give you an edge over those without one.