08 Nov

First-Time Homebuyer Mistakes to Avoid

First-Time Homebuyer Mistakes to Avoid

Buying your first home can be exciting and stressful. You are finally going to be able to call a home your own, but must also pay the price that comes with that ownership – the mortgage. While there are many things to consider before and during your home buying journey, RMLEFCU is here to make the whole process a bit easier with these first-time homebuyer mistakes to avoid.

Ignoring or Not Knowing Your Credit Score

Before you even begin planning to buy a home, you must first know if you are financially able to do so. Do you have enough money to pay for the house in cash? If not, how good of a loan will your credit score allow you to get? These are the hard, but important, questions to ask yourself when determining if you are ready to own your own home.

The first, and most basic, step to determine your financial ability, is knowing your credit score. This is the score that banks will look at when determining which home loans you qualify for and, ultimately, which houses you will be able to afford. By being aware of your credit score before meeting with a mortgage consultant, you will be able to more easily communicate your concerns and desires with them and are more likely to be happy with the result.

Looking for a Home Before a Loan

Being realistic about what you can afford is just one of the harsh truths that you must face while buying a home. By looking for houses before you know what kind of loan you qualify for, you may be setting unrealistic expectations for yourself. Instead, know where you stand before you start shopping. Visit our website or come into a RMLEFCU branch and have a financial discussion with one of our mortgage specialists to get pre-qualified for a home loan amount before you start looking.

Being Too Picky

Finding your dream house in your price range is really only a thing of fairytales. Make a list of what’s important to you in a home and decide what you need and what you can sacrifice on. For example, a great school district and large yard might be deal breakers if a home doesn’t have them, but you could maybe live without the dual master bathroom sinks and extra-large walk-in closet. It’s all about finding the happy medium between price and features.

Assuming Your Mortgage is the Only Expense

A common mistake some people make when budgeting for buying a home, is assuming that the mortgage payment will be their only expense. There are many other costs to take into account, such as property insurance, property taxes, maintenance costs, and homeowners association dues (if your residence has them). All these smaller, less significant costs can add up quickly when it comes to home budgeting and affordability. It’s best to over-budget and anticipate for more expenses early on so you’re not left blindsided and broke if anything changes in your financial situation.

The bottom line is that there more first-time home buying mistakes to avoid than you might have originally thought. It’s always better to be over-prepared, and that’s why we’re here! RMLEFCU is ready to help you finance your first home when the time comes and we have the experts here to get it done right. Visit our website or give us a call to get started and see how easy your first-time home buying process can be!

17 May

Getting Your First Mortgage Through a Credit Union- Lower Rates and No Mortgage Insurance

Mortgage Through a Credit Union

When it comes to buying your first home and applying for a mortgage loan, finding your dream home is only half of the battle. There is the task of making sure you understand all the requirements of applying for a loan, figuring out what type of mortgage is best for you, and making sure that your lender has your best interests in mind. Buying a home is probably the biggest purchase you will ever make, so there is a lot at stake when choosing a lender.

All of these reasons are why getting a first mortgage through a Credit Union like RMLEFCU is becoming more and more popular. Credit Unions operate very differently than big, private banks and in turn can offer you better service, lower rates, lower origination fees, and NO mortgage insurance if you’re putting down less than 20%.

Yes, you heard correctly! NO mortgage insurance required.

No Mortgage Insurance (PMI)

For many first time home buyers, the biggest obstacle to getting the ball rolling is the intimidating task of saving up 20% of the home cost or facing a monthly charge of $100-$300 for mortgage insurance. At RMLEFCU, you can have your cake and eat it too!

Is it up to the lender whether to charge mortgage insurance on loans with less than 20% down, and at Rocky Mountain Law Enforcement Federal Credit Union, there is none required. You can put less than 20% of the total home cost down and still avoid a monthly PMI fee.

Low Interest Rates and Origination Fees

Credit unions are able to offer lower than average interest rates and origination fees because of how their business models differ from that of a traditional bank. Credit Unions (like RMLEFCU) are owned by the members and run as close to cost as possible. Any profits earned don’t go into the executives’ pockets, members democratically decide where they go, which is usually to lowering rates and fees.

On a huge, long term loan like a mortgage, small fractional increases in interest rates can have an enormous impact on how much you will pay out over the life of the loan. Getting as low an interest rate as possible is a vital part of getting the best mortgage.

Better Service

Credit Unions are known for their great service. It all ties back to the business model; a Credit Union is owned by its members and decisions are made democratically. This involvement by members in the innerworkings of the business eliminates the divide between bank employees and you.

In addition, RMLEFCU is a local, Colorado credit union made up exclusively of law enforcement officers, support staff, and their families. Our loan officers understand the Denver real estate climate, your situation, and know you by name. Your experience applying for a loan will be much more personal and specific to you, not just how you add up on a piece of paper.

Make your dream of being a home owner happen sooner than you thought possible by getting a mortgage through a credit union. With no PMI and low rates and fees, you can’t afford not to!

20 May

How to Prepare for a First Mortgage Loan

First Mortgage Loans at Rocky Mountain Law Enforcement Federal Credit UnionFirst mortgage loans are currently still hovering at historic lows. By taking advantage of these low rates you could conceivably save a lot of money over the course of your mortgage with a fixed-rate loan. We’re not suggesting you over extend yourself and buy a home if you are not ready, however if you are in the market for your first home, now is a great time to get a first mortgage loan from RMLEFCU. As of the date this post was published, we are offering 30-year mortgages at 4.50% and as low as 3.625% APR*

So what should you do to prepare yourself for your first mortgage loan? Below are a few tips to help you get ready for one of life’s largest investments! Read More

27 Mar

Advice for the First Time Home Buyer

RMLEFCU Home LoansBuying a home is exciting! Well, at least finding a home is…

At RMLEFCU we are trying to help all of our first time homebuyers get the home of their dreams in any way we can. This article is designed to give you a few tips regarding the home buying process. If you ever have any questions concerning the loan process we strongly urge you to contact one of our mortgage specialists. This leads us to our first piece of advice, get pre-approved!

  1. Get Pre-approved – This initial consultation and pre-approval process will save you lots of headaches down the road and help you determine how much house you can afford. Getting pre-approved is easy and essential for a first time homebuyer. Once you have determined a budget, start looking for your new home! Bonus Tip: Another advantage to getting pre-approved is how quickly you will get the money to secure the home and get it under contract. Currently in the Denver market, homes are selling quickly. So do the best you can to be prepared. Click here to learn more about  the RMLEFCU loan processRead More