Get Your Finances in Order: Prepare for Credit Union Home Loan

prepare-home-loanIf you have never purchased a home before, the idea of saving for a down payment, applying for a loan and picking out the house that you will live in for the next 10, 20, 30 or more years might seem overwhelming. The best way to start preparing yourself for purchasing a home is to speak with your local account representative at St Anne Credit Union in New Bedford about getting a credit union home loan. As a member and holder of a St. Anne Credit Union account, our team can help you to figure out how much you need for a down payment, how much house you can afford and what you will need to do to get everything in order before you start the process. The more you know, the easier it will be to take all of the steps necessary to purchase a home.

Step One: Figure Out if You Are Ready
It is important to take a hard look at your financial and credit situation to determine whether or not you are ready to buy a home. Sure, it sounds like a good idea to put that monthly rent into a real estate investment, but are you really ready to put down some roots? Take a look at your current job situation – and your spouse’s as well, if applicable. Is your job pretty secure? Will your job require you to relocate at any time in the next decade? How is the market for your industry? Do you perceive any changes in the near future? Making sure that you have the funds to continue making a monthly mortgage payment is just as important as figuring out if you are ready to put down permanent roots right here in Bristol or Plymouth counties in Southeastern Massachusetts.

Step Two: Get Your Credit Score
You should have a professional credit report run to find out what your FICO score is. This score will be used to determine your credit worthiness and can affect your interest rates, as well as the amount of money that our New Bedford based credit union will be able to lend you. Speak with your account representative at St Anne Credit Union in New Bedford to find out if your score needs to be improved before you apply for a loan and what you can do to make improvements in time to purchase your new home. The more time you give yourself in advance of home shopping, the better chance you will have to improve your score to where it needs to be.

Step Three: Get Your Paperwork Together
Some of the things that you will need to have when applying for a credit union home loan through St. Anne Credit Union include your W2 earnings statements or 1099 DIV income statements, as well as your Federal tax returns for the last two years. You will also need to have checking and savings account statements for the last few months. Speak with your account representative at St Anne Credit Union in New Bedford to find out if this is something that will take care of for you since you are applying for a loan through your New Bedford based St. Anne credit union account. You will also need recent paycheck stubs, proof of other income and proof of investment income. Again, speak with a representative to find out if any other documents will be required so you can start preparing for the process.

Step Four: Consider a Pre-Approval
One of the great advantages associated with going through your St. Anne CU account to get a credit union home loan is that you can get a pre-approval for a specific amount of money that you can take with you when home shopping. This can help you to stick within your financial budget, help you find the right house for the right price and can give you “buying power” over other prospective buyers when out shopping for local real estate. Just like a pre-approval for a car loan, having a pre-approval for a home loan with your credit union in New Bedford can show the home owner that you are ready to make a serious offer. This advantage can help you to snag a home even if there are other bids being placed at the same time.

Step Five: Choose a Mortgage Loan
While there are a lot of ins and outs to learn when shopping for the right type of credit union home loan, it is most important to think about choices that will affect how long you will be making payments on your loan. For example, the most common loans are a 30 year fixed, 15 year fixed, interest only loans, ARMs or adjustable rate mortgages, balloon payment loans and payment option loans. Speak with the representative at St Anne Credit Union in New Bedford to find out which loan options are best for you and your financial situation. Call St Anne Credit Union today at 508-993-0011 or stop by our Union Street location in New Bedford, Massachusetts to speak directly with one of our representatives.