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Your First Mortgage: Know These Six Things Before You Buy A Home

Buying your first home is unforgettable, and while you're excited, there is also an element of stress that comes with that first mortgage. Even when you do research, you may still find yourself overwhelmed with aspects such as gathering paperwork, saving money, and understanding the process. On top of that, you're looking for specific features for your future home and the list gets long! Here are six time-saving tips before you get started.  

#1: Set a budget

Before you start dreaming about those double sinks in the master bathroom or that big yard for your pets, determine how much of a monthly payment you can make towards your mortgage.  Make sure that your monthly payments leave room for you to save money for things like a new roof, HVAC unit, remodels, exterior and interior painting, and landscaping. You don’t want to be strapped for cash when your house requires a little TLC, and this should be thought about beforehand.   Begin putting aside the monthly payment before you look for a house to ensure that you can afford these payments in the future.
 
#2 Start saving for a down payment in advance

Most mortgages require that you make a down payment equaling anywhere from 3% to 20% of the loan amount.  Typically, borrowers that put a higher percentage down on the home receive better terms on their mortgage.  Remember, there are also closing costs associated with any mortgage and you are expected to pay for these costs at settlement too. 

#3 Find out your credit score ahead of time.

Before you begin applying for a mortgage, you should know your credit score. This way, you can address any issues that could be a mistake, and you'll be able to speak openly with those involved the loan. If you discover your score is low, talk to a professional and create a plan to improve the number while you learn more about buying your first home. 

#4: Consider the different mortgages and which one is right for you.

The different mortgages might be the most confusing part for people who are buying their first home. Take the time to research your options from fixed versus adjustable rates to conventional loans versus government-insured loans. The more familiar you are with your choices, the smarter decisions you’ll make. Plus, you’ll understand the verbiage better when speaking with real estate agents and mortgage lenders. 

#5: Have a strategy for staying organized.

You’re going to need to have proof of income, tax forms, and a multitude of other banking and personal information on hand. Gather the information you’ll need ahead of time and have it organized in a way that is easy to access. When asked for documentation, be sure you pay attention to the requirements such as knowing if it should have a date stamp on it. This will make the process of getting your first mortgage go smoother so that you can focus on the exciting parts (like that double sink in the master bathroom).  

#6: Let the professionals guide you.

You’ll receive a $500 credit toward closing costs on a FedFinancial first mortgage, as well as expert guidance, friendly customer service, and individualized attention. Our professionals simplify the process of getting that first mortgage and are here for you every step of the way.  The best part is – all you have to do is call (301) 881-5626 or come by our office to get started!

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