Getting Started
Buying your first home is one of the most exciting milestones in life, but it can also feel overwhelming. From understanding mortgage options to navigating the closing process, there is a lot to learn. This guide will walk you through the essential steps.
Step 1: Check Your Financial Health
Before you start house hunting, take an honest look at your finances:
- Credit Score: Aim for 620+ for conventional loans, though FHA loans may accept lower scores. Check your score for free through our online portal.
- Debt-to-Income Ratio: Lenders prefer your total monthly debt payments to be less than 43% of your gross monthly income.
- Savings: You will need money for a down payment (3-20% of home price), closing costs (2-5%), and an emergency fund.
Step 2: Get Pre-Approved
A pre-approval letter shows sellers you are a serious buyer. The process involves:
- Submitting financial documents (pay stubs, tax returns, bank statements)
- A credit check by the lender
- Receiving a letter stating how much you can borrow
Step 3: Find the Right Home
Work with a real estate agent who understands your needs and budget. Consider:
- Location and commute times
- School districts (even if you do not have children - it affects resale value)
- Future development in the area
- Home inspection results
Step 4: Make an Offer
Your agent will help you craft a competitive offer. Key elements include:
- Offer price: Based on comparable sales in the area
- Earnest money: A deposit showing good faith (typically 1-3% of price)
- Contingencies: Conditions that must be met (inspection, financing, appraisal)
- Closing timeline: Typically 30-45 days
Step 5: Close on Your New Home
During closing, you will:
- Do a final walkthrough of the property
- Review and sign all documents
- Pay closing costs and your down payment
- Receive the keys to your new home
First-Time Buyer Programs
Many credit unions offer special programs for first-time buyers, including:
- Lower down payment requirements
- Reduced closing costs
- Special interest rates
- Home buyer education courses
Contact us to learn about our current first-time buyer programs and start your journey to homeownership.