With the end of winter approaching, it is a common time to begin looking for a new home. Since most realtors require a lender’s pre-approval letter before they will submit an offer for a house and because housing rates are expected to rise as the year goes on, figuring out your home purchase loan now is an important first step to getting your new house in Hampden County. In addition to this loan, there are other considerations, like a residential mortgage, that need to be taken into account when making a purchase—regardless of whether you are an experienced member of the real estate market or a first-time homebuyer.
What to Do Before Buying a Home in Hampden County
- Make sure you will be staying put. Real estate investments, especially for first-time homebuyers, are not worth it unless you plan to live there for at least five years.
- Get your credit in order. Home purchase loans require a credit check like other loans, and your credit history is going to affect the rate you can obtain. Speak with your credit bureau for ways to improve your credit score.
- Find your price point. Your home purchase loan and residential mortgage loan shouldn’t result in payments of more than a third of your household’s income. Do some quick math to find out what that is and look for loans within that range.
- Get a down payment. In order to avoid private mortgage insurance (PMI) you will need 20% down, however, we offer a purchase program with as little as 3% down.
- Get pre-approved for a home purchase loan. Some realtors won’t submit an offer for a property unless you have some proof that you can pay the amount. A pre-approval notice for a home purchase loan is one such form of proof that can be used. In addition, knowing what your loan is going to be ahead of time gives you more confidence and control in your buying power.
Residential Mortgage Options from LUSO Federal Credit Union
Once you have obtained your home purchase loan in Hampton County or your locale and become a first-time homebuyer, you may find yourself in need of extra financing. LUSO Federal Credit Union offers numerous residential mortgage options that can assist.
Conventional Fixed-Rate First Mortgage: Ideal for when your down payment is 5% or more and you need a term up to 30 years.
Adjustable-Rate Mortgages: Since the average first-time homebuyer stays in the home for around 7 years, adjustable rates may be a better fit.
Jumbo First Mortgages: These are available for single-family homes as a way to provide a mortgage when you can’t find a product with a high enough limit to cover the price of the home.
Home Equity Loans: Your home has a lot of value wrapped up inside it. Home equity loans are a way to tap into that value for flexible or lump sum loans.
Why You Should Use LUSO Federal Credit Union for Home Purchase Loans
LUSO Federal Credit Union is a member-owned, not-for-profit financial cooperative that is dedicated to providing members with quality financial services and products. We take pride in the loans we offer and can offer as little as 3% interest for down payments, have terms ranging from 10 to 30 years, keep loan servicing in house at the credit union, and use skilled in-house underwriting to make the process as easy and painless as possible for our members.
Feel free to contact our Ludlow branch toll free at 1-844-LUSO-FCU or our Wilbraham branch at 1-800-808-5876.