Steps to Prep for a Mortgage
Buying a home is exciting, but before undertaking such a big financial move, it's important to be prepared. If you are unsure about what the home buying process will look like, our Home Buying Process document can help you feel confident throughout your whole journey. Here are some steps to take that will prepare your finances for a mortgage.
Raise Your Score
One of the most important things to do before applying for a mortgage is to make sure your credit score is as high as possible. The higher your score, the lower your interest rate will be. The best way to improve your credit score is to pay bills on time, every time. As a member, you can take advantage of our free Bill Pay feature within Mobile & Online Banking to set up secure, reoccurring automatic payments so you can stay on track.
Check Your Report
You should also check your credit report for inaccuracies. Incorrect information on your credit report could negatively impact your score. Go through your report and look for errors, then report them to the bureau immediately. Make sure that you check your report with all three credit bureaus — Experian, Equifax, and TransUnion. You can get daily updates of your credit score with our free credit monitoring tool in Mobile & Online Banking!
Gather Savings
The bigger down payment you make, the more affordable your mortgage will be over time. A large down payment typically means you’ll have lower monthly payments. You’ll also have an advantage over other potential buyers, as a large down payment signals to sellers that you mean business. In addition to the down payment, you’ll also want to save for closing costs and the ongoing cost of homeownership. The more you save, the easier it will be to handle mortgage payments. At Credit Union West, we offer mortgages with low down payment options:
- FHA Home Loan: First-time home buyers can struggle because they don't have savings for a down payment. Our FHA loans are built to help first-time homebuyers get into their dream home through low down payment options and assistance.
- VA Loans: If you have served in the military, your service qualifies you for a lower interest rate and a no minimum down payment loan.
- Conventional Home Loan: Our traditional Conventional mortgages are a great option too. You can own your new home with as little as 3% down.
- Hometown Heroes Mortgage Program: Our Hometown Heroes Mortgage Program is here to support community members in key service professions in achieving homeownership.
- Down Payment Assistance Program: With our Down Payment Assistance Program, we aim to help low to moderate income earning families make their dream of owning a home a reality.
Prepare Your Documents
Having the right documentation can make the process of buying a home much easier. The loan officer will require financial documentation throughout the loan approval process. Our Home Buying Document Checklist can help make sure you are prepared. The best way to stay organized is to mark off the documents as you submit them to make sure you stay on track during your home buying process.
*Content provided by SavvyMoney - https://education.savvymoney.com/debt/what-to-do-before-applying-for-a-mortgage/
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