10 Sep

First Time Home Buyer Mortgage Tips

First Time Homebuyer Mortgage

Buying a home can be nerve-racking, especially if it’s your first one. When you find your ideal home, you should secure a mortgage that makes sense for you today and for the future. To ensure you can do this appropriately, here are some insider first-time homebuyer mortgage tips.

Apply for What You Can Afford Today

 First-time home buyers may be buying too much home. You may qualify for a large mortgage but making that steep monthly payment will impact all other parts of your life. Instead of shopping for a home that fits for the mortgage you qualify for, look at monthly payments to see if it is doable for your finances currently. When you’re making high monthly payments on a mortgage for your home, you can put yourself in a tough situation and not have money left for other things like savings and travel.

Shop for Your Mortgage 

Shopping for your mortgage is crucial and, when you ask the right questions, it can save you thousands of dollars. While filling out a mortgage application is tedious and time-consuming, that should not stop you from applying for a mortgage from more than one source.

Similar to shopping around for any large purchase you’re making, you should apply for a mortgage and get competitive rates. RMLEFCU’s mortgage application process is a breeze with our quick, local decision-making. We also have competitively low, fixed rates for home purchase and a variety of repayment terms available. On top of that, we also have helpful loan advisors with working knowledge of the local Colorado real estate market to help you get the best deal.

 Mortgage Down Payment

One prevailing myth about mortgages is that you’re required to put 20% down. While you will usually get a lower interest rate if you have a 20% down payment, that is not the threshold for achieving mortgage financing. Many lenders now permit much less and first-time homebuyer mortgage programs allow as little as 3% down. To see what your monthly payments will be, play around with a down payment calculator to help you land on a goal amount.

If you are a first-time homebuyer and are shopping around for a mortgage, you may find it difficult to sort through all the financing options. Take some time to read over these tips accordingly. A good mortgage broker or mortgage banker should be able to help steer you through all the different programs and options. If you have any questions about a first-time homebuyer mortgage or would like to speak to one of our loan officers, email us at lending@rmlefcu.org.

17 Aug

Mortgage Tips for First-Time Homebuyers

first-time mortgage loan

If you’re reading this, you’re probably in the market for a new home and need a little mortgage guidance. Well lucky for you, we’ve got some great advice to make your first (or next) home-buying experience as simple as possible with some mortgage tips!

Prepare, Prepare, Prepare

Making the decision to buy a home is a big one and being fully prepared is crucial to the entire process going smoothly. If you’ve already done all of your research and know exactly what you want, be sure you have all the proper documentation ready and accessible when applying for a mortgage. You can find a complete list of all required documentation here. It is always a good idea to get pre-approved for a mortgage before you start shopping because it not only lets the seller know that you’re a serious buyer but also tells you what you can afford. Which bring us to our next point.

How Much Can You Afford?

You may think you can afford more house than you actually can. It’s important to factor in every detail from a down payment to interest when determining your budget for a home. Much like a credit card, mortgages can have high limits that can be tempting to max out but be careful. Just because you qualify for a high mortgage amount doesn’t mean you have to use that much. Be sure to carefully plan out your budget and determine what you can afford before committing to anything.

How is Your Credit?

A big factor in determining your mortgage interest rate is your credit score. If your credit score is lower, you will end up paying much more in interest over the life of the mortgage than someone with a higher credit score. It may be advantageous to work on building up your credit score before applying for a mortgage loan in order to save money in the long run.

Shop Around

A common mistake made by first-time homebuyers is to take the first mortgage they are offered. Be sure you shop around and get multiple quotes from various lenders before deciding and remember that even a small difference in interest rate can make a big financial difference over the life of a mortgage loan. As always, the best place to start is your credit union because we offer low, competitive mortgage rates exclusively for our members.

22 Apr

Colorado Home Prices Rising at Fastest Rate in the Country

How to use a Home Equity Line of Credit HELOCAccording to the Denver Post who referenced a report from CoreLogic, a firm that tracks housing trends, home prices in Denver rose by 9.8% year over year in February. This home-price appreciation rate is currently the highest in the United States. The average sold home price in metro Denver is around $354,000 in March 2015. It was around $344,000 in February 2015 and was around $311,000 in February 2014.

RMLEFCU is offering Mortgage Loans at 4% APR* with no mortgage insurance and ½% origination fee for RMLEFCU members. If you are trying to buy a home, please contact a RMLEFCU representative.

That’s great, but you already own a home and you don’t plan on selling anytime soon. So what does this mean for you?

How to take advantage of low interest rates and the increased value of your home. Read More

19 Feb

5 Tips for the First Time Homebuyer

So you’re ready to buy a house for the first time! It’s exciting, it’s groundbreaking, it’s a huge step forward…and it’s also a long, stressful process with a lot of opportunity for mistakes. We have five tips for a first time home buyer that should help you find your perfect home and mortgage. (*fun fact* mortgage translates literally to death pledge.)

5 tips for the first time home buyer credit union1.) First things first, make a list that includes your absolute needs, your “really wants”, and your “won’t haves”. The priority of the list is completely up to you. Maybe having a double vanity in the master bathroom is more important to you than living in a neighborhood with low property taxes. There’s no right or wrong formula for what’s necessary for your home: it’s what is right for you! Once you’ve made the list, stick to it. A house with perfect hardwood floors is not going to make up for the long work commute that was on the top of your “won’t have” list.

2.) Organize your documents. This may seem like a no-brainer, or even a minor step in the home buying process. We’re here to tell you it’s an absolute must to get this done ahead of time. There’s hardly anything more stress inducing than choosing a home and applying for a mortgage and realizing that you have fifteen different documents you need to round up by the morning. Sheyna Steiner for bankrate.com warns that most mortgage lenders will require “two recent paystubs, the previous two years’ W-2s, tax returns and the last two months of bank statements — every page, even the blank ones.” Not only does doing this early save time, but it’s an essential step in preparing your budget, which just so happens to be our next tip.

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