If you are thinking about buying a home, the entire process may seem overwhelming. It’s more than just deciding what home to buy. Here are 3 tips that will help make the process go smoothly, so you can find your new home and start making memories.
Beginning the Process
It’s easy to jump into the process of buying a home, but you need to take a few necessary steps to understand what you are about to jump into and better educate yourself about the process. The first thing you want to do before you start searching is to speak to a mortgage loan officer and get preapproved for a loan. The pre-approval process is easy and will help you better understand how much you can afford.
Things you will need include your W2s from the last 2 years, your most recent pay stubs, and 2 months of statements of all your assets. Speaking to a mortgage loan officer can help you create a budget and plan to purchase in the price range you are approved at. Stop by City Credit Union and start the pre-approval process today.
Working with a Realtor
Know a real estate agent that you trust and have connected with? Using an expert realtor that has extensive knowledge of the market can help you see local trends, avoid costly mistakes, and help point out things you wouldn’t see by not hiring a realtor. When choosing a realtor or agent, make sure you choose one that understands what you are looking for, what your needs are, and any concerns you have.
Working with a Loan Officer
Before you begin working with a loan officer, make sure you educate yourself on the longer-term financial benefits and disadvantages, the costs, and what the process entails. Loan officers are a great resource and will help explain the basics, as well as making sure you are heard and walk away feeling great about your home buying decision. Keep in mind, it’s important to inform them about any changes that may have happened, like a new job.
The most common percentage for a down payment on a home is 20%, but most actually make smaller down payments. You can put down as low as 3% depending on your situation. Putting 20% down can help make the monthly payments smaller, help you gain more equity, and avoid private mortgage insurance. For most, 20% down isn’t easy especially with property taxes, homeowner’s insurance, and closing costs included. Instead of draining your savings account, put a smaller down payment on your home so you can feel comfortable with the extra costs and potential upgrades to your home after you are settled in.
Ready to Find Your New Home?
City Credit Union is ready for you to start the process of buying your home. We are committed to making the homebuying process as seamless as possible, so call us today at 816-252-2415 or visit our website.