Home Shopping and Buying Tips
Know The Situation
Searching for and purchasing a home can be a daunting task, especially if you’ve never done it before. While you should be alert during the process to avoid poor financial decisions, there’s no reason to feel undue stress. After all, buying a home is one of life’s great accomplishments for many people, so remember to enjoy the moment!
Loan Pre-Approval From PrimeWay
One of your first steps should be to get your financial documents in order and seek pre-approval for a loan from PrimeWay Federal Credit Union. This process will determine exactly how much money you can borrow based on your employment and credit history. PrimeWay Federal Credit Union’s loan officers will help you determine which of our multiple mortgage products best suits you.
Price Range And Priorities
While you’re going through the pre-approval process, you should also have an idea of your price range for purchasing a home. A house on the low end of your scale will mean smaller monthly payments, but could also mean getting into a fixer-upper. A house on the higher end comes with the commensurate price tag. It’s important to work with a reliable real estate agent who places priority on your interests, not his or her pocketbook.
Then you should rank your own priorities. What’s most important? Size of the house? Location? The amenities in the home and surrounding neighborhood?
Determining The Real Cost Of Owning A Home
When you’ve found the right house, keep in mind that the selling price is not the true cost of the property. When you take out a mortgage, you’ll be paying the loan’s principal along with interest. Plus, there are local property taxes and insurance costs to consider. Talk to your PrimeWay Federal Credit Union loan officer and real estate agent to get a handle on the exact monthly costs of owning that home.
You may also need to involve an attorney, who can verify whether there are any tax liens against the property. Also consider that your monthly costs will increase if you need private mortgage insurance (PMI), which is required for all conventional mortgage loans with less than a 20 percent down payment.
PrimeWay Federal Credit Union provides multiple financial calculators to help you figure out the costs of buying a home. You can compare a fixed-rate mortgage with adjustable-rate mortgages, determine the annual percentage rate on your mortgage and compare the costs of a 15-year mortgage with a 30-year mortgage.
Finding and financing a home is one of life’s major decisions. It’s important to go into the process with a solid plan.