The Steps of Shopping for a Home Mortgage Loan
Home mortgage loans are often confusing for new homebuyers, but they don’t have to be. Work closely with your credit union to navigate the mortgage process, and you will find the right loan for your needs. When you decide to apply for a home mortgage, follow these steps.
Decide What You Can Afford
Before you go house hunting, know your price range. Being unrealistic about what you can afford can cause problems in the future, including the loss of your home if you default on payments. Take a close look at your income and expenses, remembering to include costs like maintenance and insurance that you will have in addition to your mortgage payment. If you’re not sure what is a realistic mortgage amount for you, talk to your credit union rep for advice.
Consider Mortgage Types
Home mortgages can vary in both term and interest rates. 15- and 30-year mortgages are the most common types. 15-year mortgages usually have lower interest rates, but you will reap tax benefits for longer with a 30-year mortgage. Interest rates can be fixed or adjustable. Adjustable loans can start out with lower rates, but you have to be prepared to face significant payment increases if rates go up in the future. There is no right type of mortgage for everyone. Your credit union representative can help you select a loan based on your needs, income, and financial history.
Gather Your Documents
Your credit union will require a great deal of information from you as you apply for a mortgage, and any delay in providing supporting documentation can interfere with the processing of your loan. Before you apply, gather pay stubs, tax statements, and other documents your credit union needs so you can get the fastest possible decision.
Let GCS Credit Union help you with the process of getting a home mortgage in O’Fallon. Get started using our online banking services or stop by a branch today. You can also call (618) 797-7993.