With home prices and interest rates still low, now is a good time to buy a home. If you’re a first-time home buyer, there's a lot to think about – but it doesn't have to be overwhelming. By going into homeownership prepared, you'll be assured you're making a wise decision. Ready to take the homeownership plunge? Here's how to get started:
Think about your budget. Decide how much home you can comfortably afford. Typically, your monthly payment should be no more than 28% of your gross income. Use Hanscom FCU’s simple mortgage calculator to calculate monthly payments. Create a budget with your new house payment included and try it out for a few months. Bank the difference and not only will you see what paying a mortgage will be like, but you'll save some extra cash too!
Pay off debt. The less debt you have before purchasing a home, the better. Lenders won't usually allow your monthly debt service – such as credit cards, student loans and auto loans – and your house payment to exceed 40% of your income. Plus, your mortgage interest rate will be based on your credit score. Listen to our podcast to learn why a good credit score is needed for the best mortgage rates. If you pay off some debts, your score will likely rise. We can help with a credit score enhancement review.
Save for a down payment. 100% financing is becoming harder and harder to find. Saving for a down payment will allow you to qualify for better interest rates, afford more home and start out with more equity.
Get preapproved at Hanscom FCU. Come and see us to learn about the many mortgage products we have to offer. You can also get started on the Web with our online mortgage application. Don’t miss your opportunity! Get rate updates right to your email inbox when you sign up for mortgage rate watch.