First-Time Home Buyer? Here’s What You Need to Know.

Buying your first home is an exciting and significant step for your future. It can also be overwhelming, especially when it comes to managing your finances and picking a mortgage loan.

At GCCU, we’re here to help first-time home buyers cut through the confusion and land their dream home. Keep reading to learn more about the home buying and lending process, including what you can expect and how you can prepare at every stage.

Start By Taking Stock of Your Finances

A seamless home buying experience doesn’t start at open houses or on listing websites. It starts where you already are, by taking stock of your finances and making sure you have all the information you’ll need to meet with lenders.

To start, compile all the following information:

• Gross monthly household income
• Monthly debt payments
• Total savings
• Budget for a down payment
• Credit score

You can then use a home affordability calculator to get a better sense of what loan options and mortgage payments would be best for your budget.

Get Prequalified or Preapproved

With all of your financial information prepared, you’re ready to start meeting with lenders.

At this stage, you’ll meet with lenders to discuss their mortgage options, interest rates, and the amount they’d be willing to lend you. You may want to consider getting a prequalification letter or getting preapproved for a mortgage.

Here at GCCU, you can choose to discuss your options with our staff or use our online mortgage center to get custom rates, get prequalified, and browse our mortgage options from the comfort of home.

Tour Houses with a Realtor & Make an Offer

Working with a realtor ensures that you’re only focusing on homes that fit your qualifications and budget. This will save you time and energy – especially in a competitive market where you may be one of many interested buyers. A realtor will also be able to help you make a well-informed offer when you find the perfect house.

Get an Official Loan

Once your offer on a house is accepted, you have about 60 days to finalize a mortgage.

Your lender will send you an official loan estimate after you submit an application. That estimate will include the interest rate, monthly payment, and closing costs that come with the loan. You can also request estimates from several lenders to see which one is the best fit.

The lender you end up choosing may require additional documentation, such as proof of income and verification of your assets. Before you sign on the dotted line, thoroughly review all details to make sure they match what was previously discussed or agreed to.

Mortgages & Rates at GCCU

Buying your first home is a big milestone. You deserve a financial partner that treats it like one.

At GCCU, we prioritize personalized service at every stage of the process, with custom loan terms, competitive rates, and expert guidance the way you prefer it – online or in-person. Keep reading to learn more about mortgage options for first-time home buyers at GCCU.

Federal Housing Administration (FHA) Mortgage

Designed to provide low down payment financing, this is a great option for first-time homebuyers. The Federal Housing Administration insures the loan, so GCCU can offer you better deals and down payments as low as 3.5%.

Conventional Fixed-Rate Mortgage

This mortgage option comes with an interest rate that won’t change for the life of your home loan, giving you the security of a stable monthly payment. Get the peace of mind that comes with a fixed-rate mortgage and get locked into a low interest rate today.

Veteran Affairs (VA) Mortgage

All veterans of the United States Armed Services are eligible for a VA Mortgage. This mortgage option allows veterans and active duty members of the Armed Services to purchase a qualifying new home with no down payment. Members of the United States Armed Services, we salute you!

Medical Professionals Mortgage Program

We’re proud to offer a Medical Professionals Mortgage Program, which makes the home loan process more accessible for healthcare workers by providing flexible consideration of debt-to-income ratios and no money down required.