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Buying a home for the first time can be intimidating. The real estate market has its own financing terms and requirements that can be confusing. However, you can make home buying easier by coming to your credit union. We’ll help you with the terminology and walk you through the entire process step-by-step. To help you get started, here are a few things to consider:

How Much House Should You Buy?

Be realistic. To be comfortable with your new home it’s important to buy only as much the house as you can afford. You can usually qualify for a mortgage that is two to two and one half times your household gross income (before taxes).

The Down Payment

A 20% down payment is considered the standard for a conventional mortgage. However, there are alternatives today. If all other factors are inline, such as your credit history and job security, you could acquire a mortgage with as little as 5% down. You shouldn’t put all of your money into a down payment anyway. There are closing costs to consider, plus possible repairs and the unexpected emergency.

Estimating The Closing Costs.

In general, mortgage closing costs include a number of expenses, including your attorney’s fee, the lender’s attorney’s fee, title search, insurance, mortgage tax, tax escrow, and an origination fee. This could cost you as much as 6% of your mortgage. The good news is that the costs are generally lower at your credit union compared to other financial institutions. We simply do not charge as many fees. In fact, you could save thousands of dollars compared to the closing costs charged by other lenders.

Tax-deductible Interest Advantage

Most homeowners can deduct their mortgage interest when they itemize on their federal tax return. The deduction could lower your Adjusted Gross Income (AGI). Put simply, you pay less income tax.

It’s A Great Time To Buy!

Don’t miss this buyer’s market. Mortgage rates are the lowest they’ve been in years. We can discuss your specific mortgage needs and help you choose the best financing option.

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