There are many factors to consider when purchasing a home. Let us help you walk through the process.
Step 1: Should I buy?
Purchasing a home is one of the biggest financial decisions you will make. Before you start scoping out neighborhoods, consider these questions:
- Is my credit record healthy?
- Do I have enough for a down payment?
- Have I considered the costs of owning a home besides just the note? What about insurance and the cost of maintaining the house?
- Do I plan to remain in the house for at least 3 or 4 years?
If you answered “yes” to the questions above, congratulations! You could be on your way to home ownership!
Step 2: Find a mortgage that’s right for you
The most popular types of mortgages are 30 or 15 year fixed rate loans where the interest rate remains the same throughout the life of the loan. Other mortgages include variable rate, or ARMs (Adjustable Rate Mortgages), where the rate changes periodically during the term of the loan. Click here to learn about the mortgages offered through GNO Federal Credit Union or call our Real Estate lending department at (504) 454-8224 to find out what option suits you best.
Step 3: Check your credit and skip large purchases.
Lenders will check your credit history when applying for any loan. Your credit ‘rating’ will be used in determining your rate. It’s good to get a copy of your credit report ahead of time to clear up any blemishes that may be on your report. Get your credit report from Equifax (800-685-1111), Experian (888-397-3742) and Trans Union (800-888-4213).
Lenders don’t like to see large purchases made right before you buy a home. An increase in your debt to income ratio reduces the amount of monthly income available for your mortgage payment.
Step 4: Find out how much house you can afford.
Before you begin shopping, decide what your budget and income will allow. Besides the house note, consider the costs of adding on home owner’s insurance and taxes. Use our calculator “How much house can I afford?”
Step 5: Apply for the mortgage
This is what you can expect in the application process:
- Complete a loan application to get pre-approved. Be prepared to provide us personal and income information. We'll provide a prequalification letter to your realtor.
- After you've selected your home, provide us with the purchase contract, property information and loan needs. Remember, the more information you can provide up front, the quicker we can process the loan.
- We will process your application — order an appraisal, discuss your lending options, lock in an interest rate, and prepare to close the loan!
Ways To Apply
|
