Spring is the most popular time to buy a home. After a cold winter being cooped up inside, it's not uncommon to want something new and fresh. In addition, houses definitely look more appealing as lawns green up. However, don't let cabin fever launch you out into the housing market before you're ready. Pittsford FCU's Mortgage Department has a few tips to help you prepare for the search.
Know Where You Stand Financially
- What is your credit score? A score of 740 and above is ideal.
- What is your budget? What monthly housing expense is comfortable for you? This should include the principal and interest payment on the mortgage loan, as well as the property taxes and homeowners insurance. In some cases, Private Mortgage Insurance (PMI) may need to be included as well.
- What are your financial obligations? The total of all your monthly obligations plus your new housing expense should generally not exceed 43 percent of your gross monthly income.
- What does your cashflow look like? Make sure you have enough cash available to cover your down payment and closing costs. You should also plan to have the funds to cover one year's property taxes. A 20 percent down payment is ideal. However, we do offer products with as little as 3 percent down (or even less for first time home buyers).
Use These Helpful Tools
Pittsford FCU has some tools to assist you with answering these questions:
- Balance Homebuying Toolkit - This simple-to-use guide breaks down the process into a series of clear and easily understood steps at www.balancepro.net/homebuying.
- Online preapproval application - Visit PittsfordFCU.org/Mortgage to complete an online application. You may instantly receive a preapproval letter. If not, one of our Mortgage Loan originators will call you to finalize quickly so you can get shopping for that new home.
- Free credit report - For a free copy of your credit report, visit AnnualCreditReport.com. To see your credit score and data, we suggest you visit CreditKarma.com. CreditKarma is ad supported but is the only truly free source for score information that we have found. Others advertise free scores but only if you sign up for paid services.
- Current rates and online closing cost estimate - Check out our mortgage rates and get an estimate of what your closing costs may be at PittsfordFCU.org.
First Home? Think Pittsford FCU First!
Please check with us to get details on our new First Time Home Buyers program:
- As little as zero percent down payment
- Pittsford FCU will help pay some of your closing costs
These are just some of the resources available for mortgage products on our website. If you have further questions, you can also contact the Mortgage Department at (585) 381-3885 or (800) 836-8010 to set up an appointment. We would love to be a part of helping you purchase your new home!
« Back to Home