6 Steps to Take Before House Hunting
Do your homework before you start searching for your next home!
The weather’s getting warmer and before you know it, “for sale” signs will be going up around town. If you’re starting the search for a new home in the next few months, there are a few things you can do to ensure you’re getting the best mortgage for your personal situation, even before you step foot in an open house:
- Get a free copy of your credit report at AnnualCreditReport.com. Be sure to notify the credit bureaus of any errors in the credit report you receive.
- Before shopping for your home, get pre-approved so you know the maximum mortgage you can obtain. Read the conditions carefully. Your pre-approval should only be contingent on appraisal of the home you decide to buy.
- Decide if a fixed rate or adjustable rate mortgage (ARM) is best. If you plan to stay in your home less than seven years, you can save considerably on interest with an adjustable rate mortgage.
- If you plan to keep your home more than seven years, a fixed rate mortgage is usually safest. Should interest rates rise, a fixed rate mortgage protects you because your payment cannot increase.
- When shopping for an ARM, ask about the index used, the margin , maximum annual payment and interest increases, lifetime “cap” maximum, interest rate, and if the ARM is assumable by a future buyer of your home. The slowest-moving ARM index is usually the “cost of fund index” whereas the most volatile are the “treasury bill indexes.” A margin, such as 2 percent, is added to the monthly-changing index rate to arrive at the ARM interest rate.
- When comparing mortgages offered, obtain the APR (annual percentage rate) which includes any loan fee.
Learn more about our home loan program, including the CU Home Advantage Program, which features a 20% rebate on your real estate agent’s commissions* - or learn more about our mortgage products and contact one of our loan officers directly.
When you find the perfect home, we can help get you the perfect mortgage to match.
As featured in Currents / eCurrents Spring 2014 edition
*Rebate is paid 30 days after closing
This is not an offer to extend consumer credit as defined by Section 1026.2 of Regulation Z. Rates and terms are subject to change without notice. Texans Credit Union (NMLS# 530654) provides home loans by partnership with CU Members Mortgage a division of Colonial Savings, F.A. NMLS# 401285.