Navigating the Path to Homeownership
July 12, 2024
As one of the top credit unions in the country, we leverage our not-for-profit status to offer you competitive rates and personalized service. But, we don't stop there. We're dedicated to simplifying often-complex topics such as the process of purchasing or refinancing your home. Below, 1st Mortgage Sales Manager, Adam Messersmith, helps provide insight on the top frequently asked mortgage questions.
Why Own a Home?
The answer is straightforward: wealth creation. Renting does not build wealth. Instead, you can own a home for a monthly payment comparable to rent, with added benefits. Ownership offers significant advantages, particularly if you plan to stay put for 4 to 5 years. Tax deductions, amortization, and future investments are all notable benefits. "Buying a home is not just a financial investment; it’s an investment in your future and your family’s future," emphasizes Adam Messersmith.
How Much House Can You Afford?
This involves calculating your potential monthly mortgage payments, including principal, interest, taxes, and insurance, as well as upfront costs like down payments and closing costs. Most conventional home loan programs require a minimum down payment of 3% to 5% of the purchase price. For those without substantial savings, NASA Federal offers a Zero Down, No PMI Special for qualified members, making homeownership more accessible.
What Does Your Credit Look Like?
Your credit rating is a vital part of the mortgage approval process. It influences the interest rate and terms you qualify for. A higher credit score can mean lower interest rates, maximizing your pre-qualification amount and minimizing monthly payments. “Your credit score is a reflection of your financial responsibility,” explains Messersmith. “Improving your score can save you thousands over the life of your mortgage.”
Getting Pre-Qualified
Once you’ve reviewed your credit, the next step is getting pre-qualified. This involves providing income and asset documentation and submitting a formal application. Your credit, capital, and capacity are analyzed to determine the maximum loan amount you qualify for and what aligns with your financial comfort zone.
Not Jeopardize Your Loan Approval
After getting pre-qualified, it’s important to maintain your financial stability. Avoid major changes to your income, job, assets, or credit. Actions like quitting a job, making large purchases, or applying for new credit can jeopardize your loan approval. “Staying financially consistent is key to securing your mortgage,” warns Messersmith. “Any significant changes can lead to a loan denial.”
Where Do You Want to Live?
With a clear budget, you can now explore potential neighborhoods. Consider factors like median income, cost of living, property taxes, school quality, public transportation, and local amenities. This helps narrow down your search to areas that fit your lifestyle and budget.
What’s on Your “Must-Have” List?
Before house hunting, list your must-haves. Decide on property type, number of bedrooms and bathrooms, square footage, and other features. Prioritizing your needs helps streamline the search process and avoid compromises that don’t fit your lifestyle. “Knowing your must-haves upfront saves time and reduces stress,” advises Messersmith. “It ensures you find a home that truly meets your needs.”
What You Need to Get Started
To find and finance your dream home, enlist professional help. NASA Federal’s Home Advantage® Program connects you with reliable real estate agents who offer rebates on their commission, reducing your closing costs. You also get access to the MLS for real-time listings. “Working with knowledgeable professionals makes the process smoother and more efficient,” says Messersmith. “Their expertise is invaluable.”
We’re Here to Help
The home buying process can be overwhelming, but you don’t have to navigate it alone. NASA Federal’s Mortgage Center offers the flexibility, options, and features to make your homeownership dream a reality. Visit www.nasafcu.com/mortgage or call 1-888-NASA-FCU (627-2328) to request an appointment with a Mortgage Specialist. Or, click here to learn more.
Remember, you don’t have to work at NASA to benefit from our mortgage expertise. Let NASA Federal’s Mortgage Center be your trusted partner on your home buying journey. That’s smart. NASA smart.
Why Own a Home?
The answer is straightforward: wealth creation. Renting does not build wealth. Instead, you can own a home for a monthly payment comparable to rent, with added benefits. Ownership offers significant advantages, particularly if you plan to stay put for 4 to 5 years. Tax deductions, amortization, and future investments are all notable benefits. "Buying a home is not just a financial investment; it’s an investment in your future and your family’s future," emphasizes Adam Messersmith.
How Much House Can You Afford?
This involves calculating your potential monthly mortgage payments, including principal, interest, taxes, and insurance, as well as upfront costs like down payments and closing costs. Most conventional home loan programs require a minimum down payment of 3% to 5% of the purchase price. For those without substantial savings, NASA Federal offers a Zero Down, No PMI Special for qualified members, making homeownership more accessible.
What Does Your Credit Look Like?
Your credit rating is a vital part of the mortgage approval process. It influences the interest rate and terms you qualify for. A higher credit score can mean lower interest rates, maximizing your pre-qualification amount and minimizing monthly payments. “Your credit score is a reflection of your financial responsibility,” explains Messersmith. “Improving your score can save you thousands over the life of your mortgage.”
Getting Pre-Qualified
Once you’ve reviewed your credit, the next step is getting pre-qualified. This involves providing income and asset documentation and submitting a formal application. Your credit, capital, and capacity are analyzed to determine the maximum loan amount you qualify for and what aligns with your financial comfort zone.
Not Jeopardize Your Loan Approval
After getting pre-qualified, it’s important to maintain your financial stability. Avoid major changes to your income, job, assets, or credit. Actions like quitting a job, making large purchases, or applying for new credit can jeopardize your loan approval. “Staying financially consistent is key to securing your mortgage,” warns Messersmith. “Any significant changes can lead to a loan denial.”
Where Do You Want to Live?
With a clear budget, you can now explore potential neighborhoods. Consider factors like median income, cost of living, property taxes, school quality, public transportation, and local amenities. This helps narrow down your search to areas that fit your lifestyle and budget.
What’s on Your “Must-Have” List?
Before house hunting, list your must-haves. Decide on property type, number of bedrooms and bathrooms, square footage, and other features. Prioritizing your needs helps streamline the search process and avoid compromises that don’t fit your lifestyle. “Knowing your must-haves upfront saves time and reduces stress,” advises Messersmith. “It ensures you find a home that truly meets your needs.”
What You Need to Get Started
To find and finance your dream home, enlist professional help. NASA Federal’s Home Advantage® Program connects you with reliable real estate agents who offer rebates on their commission, reducing your closing costs. You also get access to the MLS for real-time listings. “Working with knowledgeable professionals makes the process smoother and more efficient,” says Messersmith. “Their expertise is invaluable.”
We’re Here to Help
The home buying process can be overwhelming, but you don’t have to navigate it alone. NASA Federal’s Mortgage Center offers the flexibility, options, and features to make your homeownership dream a reality. Visit www.nasafcu.com/mortgage or call 1-888-NASA-FCU (627-2328) to request an appointment with a Mortgage Specialist. Or, click here to learn more.
Remember, you don’t have to work at NASA to benefit from our mortgage expertise. Let NASA Federal’s Mortgage Center be your trusted partner on your home buying journey. That’s smart. NASA smart.
