Home: A Loan

Following are first steps to help you achieve your goal:

BUDGETING

You can typically afford a home that is 2 ½ times your annual income. Lenders will usually assume you can afford to spend 28% of your total income on your mortgage, property taxes and homeowners insurance. Total should not exceed 36% of your total income.

FINDING A HOME

Knowing what you can afford, the search for the right home begins. An experienced real estate agent can help you target the right home based on your wants and needs, desired location and housing market.

COSTS & EXPENSES

• Down Payment - part of the purchase price you pay in cash; is usually 5%.

• Earnest Money - the deposit that demonstrates your seriousness when you make an offer; becomes part of the down payment if offer is accepted.

• Home Inspection – having an examination by a certified inspector will help you make an informed decision.

• Closing Costs – costs to cover the transfer of ownership, such as attorney fees, title insurance, appraisals and property taxes.

MORTGAGE APPLICATION - Your lender will need the following information:

• Income Verification
• Financial Accounts
• Debts and other Financial Obligations
• Down Payment Verification
• Employment Status
• Current Mortgage and Rent Amounts

DON'T GO IT ALONE

You can move comfortably through the entire process when you find the right lender – and this may be your local credit union.

Because credit unions are non-profit and are designed to serve, they tend to offer better solutions and personalized attention than other lenders. Overall, mortgage lenders are on fairly equal footing, but credit unions seem to make some people feel more comfortable.*

If you’re ready to buy your first home, Palmetto Citizens Federal Credit Union offers many tools, services and personal assistance to help you achieve your goal of buying a home. 

Visit us at www.palmettocitizens.org or call us at 803-732-5000. 

Also, like us on Facebook

*National Credit Union Administration