Home Sweet Home Buying 101
February 5, 2021
TVFCU Mortgage hosted a free Virtual Homebuyer Seminar as part of our new mortgage seminar video series. Eric Weekly, VP Mortgage Lending and Bryan Fryar, Mortgage Sales Manager, answered home buying questions and explained the process of becoming a homeowner. Here are some big questions they addressed that will help you along the path to home ownership.
- What type of mortgage can I afford?
Ask yourself about job security and are you stable with your monthly income? Get pre-qualified. Time is money. Realtors want to know you are serious about buying. If you are thinking about changing jobs, be honest with your Mortgage Originator. Don’t hold anything back. Also, are you planning to have a child in the near future and what are your personal goals? Have you looked at your finances and determined how quickly you want to pay off your mortgage? Do you understand how a 15, 30 and adjustable rate mortgages work? Know your time frame. Right now it takes about 30-45 days to start and finish your home buying journey. By the way, there is no better time than right now to go through refinancing with rates at historic lows if you already have a home.
- How much money do I need to buy a home?
TVFCU offers its members 100 percent finance options. From 0 percent down on up. Remember every situation is different. There are a lot of options. This is a huge investment. The TVFCU team has seen it all when it comes to financing a home. There is no cost when it comes to pre-qualifying for a loan
- I hear the letters PMI. What is this?
PMI is the acronym for Private Mortgage Insurance. It can be a nominal price to pay for being able to secure a home loan. Many mortgage companies require their customers to pay for this insurance if you put less than 20 percent down. It protects the lender if you are unable to pay your mortgage. The good news, if you are a TVFCU member, we have some loan products available that do not require PMI which can be a big savings to you in the long run.
- What about renting versus buying?
A lot of college graduates talk to the TVFCU team when it comes to buying a home. Often times, renting is not always the cheaper path to follow. TVFCU is a local credit union and all lending decisions and underwriting procedures are decided here at home. Just ask.
- What if a person is self-employed?
If you own your own business we ask you to have at least two years of tax returns. Talk to our mortgage team to find out what is best for your financial situation with an income analysis. Everyone deserves a chance. TVFCU also helps members buy rental properties for business opportunities.
- When Can I refinance?
You have to wait six months since your most recent closing or 180 days. If you are hoping to cash out, you will typically have to wait out the six month period. When mortgage rates are low and continue to fall, go for it. Make sure to also ask about a Home Equity Line of Credit (HELOC) for yet another option.
- How good does my credit have to be to own a home?
The better your credit score, the more likely you are to receive a good interest rate on your mortgage loan. Make sure you pay all your monthly bills on time. Try to not apply for any more credit than you absolutely need. TVFCU uses all three credit reporting services when checking a member’s buying history to calculate the correct score. TVFCU has loans available for all types of personal situations. Good credit, bad credit or rebuilding your credit. Maybe a few months down the road, when some of your credit is cleared up, try again for a better mortgage option. It is all in the timing. That is why a credit union is ideal.
- Are you ready to buy?
Remember, the biggest key takeaway to this entire seminar is determining your debt-to-income ratio or (DTI). Can you afford to buy a house or should you just wait until you feel more financially confident? Do I need a down payment and what about the current housing market? How are the interest rates right now and do you plan to stay put for a few years? Owning a house is a dream for many people living in rental properties. Yes, home ownership has many advantages. Your decision to buy a house takes a lot of careful consideration. Our TVFCU Mortgage Team help you buy the home you love.
Meet our TVFCU Mortgage Team here!
Watch the TVFCU Homebuyer Seminar (view under Seminar Archive) to learn more about the home buying process!