Our SWITCH & SAVE
campaign is back, and this year we’re focusing on helping our members save with low rates and convenient loan products. This month we’ll focus on home loans, so if you’re considering applying for a mortgage any time in the future (near or far) read up on these tips so you’re prepared to get the best possible rate.
Tip #1: Start saving.
Hopefully, you’ve been able to set aside money each month to put toward your next big purchase. When you’ve made the decision to buy a house, the first thing you’ll need to determine is how much money you have for a down payment. Depending on your lender and the house you want, a down payment can range from 2.25% to 20% of the purchase price of the home.
An established monthly budget should help you determine how much you can afford to save for a down payment. Once you know how much you can set aside, consider setting up an automatic transfer from your checking or paycheck into a savings account so the money is automatically saved each month. If you’re in a hurry to get the down payment saved up, cut back on other expenses like eating out or travel. Every dollar helps your down-payment fund grow that much faster.
Tip #2: Check your credit score.
Ideally, you should check your credit score periodically and watch your credit reports closely. The first time you step into your financial institution to apply for a home loan should not
be the first time you hear about your credit score. Each of the three major credit reporting agencies – Equifax
-- provide one free credit report annually, so you’re able to monitor your score throughout the year.
Before applying for a home loan, get a copy of your credit report from all credit reporting agencies. Take time to carefully review your score, dispute any inaccuracies and, if needed, develop a plan to increase it. A good credit score gives you access to the best rates on your home loan.
Tip #3: Get your financial documents ready.
You will need a number of financial documents handy when you apply for your loan. Call your financial institution before you start the application process so that you know what information they’ll need from you. If you have these ready ahead of time, you’ll be able to speed up the process.
Tip #4: Use a mortgage calculator.
Once you have your ducks in a row, look at a mortgage calculator like this
one. A mortgage calculator tool will help you understand the price range of homes you can afford. It can show how much your monthly mortgage payment would be when you factor in different home prices, down payments and interest rates.
Tip #5: Get pre-qualified.
In today’s market, many real estate agents want buyers to be pre-qualified before they will work with you. Talk to your Delta Community representative about the pre-qualification process. It’s a simple step that will give you a better sense of how much money you qualify to borrow. That will simplify your search for an affordable home.
Tip #6: Understand your loan options.
There are many different types of loans – Fixed-Rate, Adjustable-Rate – and one type will be better suited for you than the others. Delta Community has a variety of loan options
and our Home Loan Specialists are always available to explain the differences and help you decide which one is best for you.
Tip #7: Once your credit score is good – leave it alone.
Once you have pulled your credit report and score, are happy with it and have applied for your loan, don’t do anything that might hurt your score. Lenders might pull your credit report a second time before the loan closes to make sure nothing has changed. So once you apply, make sure you continue to pay your bills on time and don’t open any new credit cards.
Now that you have the basics down, visit your local Delta Community branch to talk to one of our Home Loan Specialists for a more customized plan. Also, be sure to take a look at our SWITCH & SAVE
promotion: If you apply for a home loan before September 30th
and close by November 30th
, you’ll be automatically entered to win a month’s mortgage paid by us!*
Article submitted by Jeff
*Apply for a first-lien closed-end real estate loan at Delta Community CU between July 15, 2013, and September 30, 2013, (“Promotion Period”) and take funding of the loan by November 30, 2013, and you’ll be automatically entered to win a one-time payment of your monthly mortgage payment (including any escrows for taxes and insurance) up to a maximum prize limit of $2000 as part of our 2013 Switch Home Loan Sweepstakes!
NO PURCHASE NECESSARY TO ENTER OR WIN. Alternative method of entry available, by way of mail-in entries postmarked during the Promotion Period. Sweepstakes open to U.S. citizens 18 years of age or older who are legal residents of AL, CA, DC, GA, IN, KY, MI, MN, NY, NC, OH, SC, TN, TX, UT or VA. Mail-in Entries must be submitted on a 3x5 card to qualify for entry. For complete contest rules and details visit www.deltacommunitycu.com/switch