Why a Credit Union Mortgage? Mortgage Options Rates PREQUALIFY Rates Ratewatch Closing Costs

I Found My Dream Home

Now that you are ready to purchase a home, it's time to take a careful look at your finances to determine how you have handled money in the past especially your savings, your outstanding debt obligations and your income.

Savings - Hopefully you've already been saving in anticipation of the day you will buy a home. You will need that savings for Earnest Money, the Down Payment and Closing Costs. CUFS provides a variety of mortgage loan options to suit each member's personal financial situation but you should have a down payment goal in mind. Here are a few tips on reaching that goal:

  • Set a Realistic Goal - Look at your monthly income and out go to see what you can realistically save each month. Cut back on expenses that aren't necessary whenever possible and make sure you are paying all of your monthly debts on time and for the amount required.
  • Avoid Unnecessary Purchases - Don't spend money on "big ticket" items that you really don't need. When shopping, keep in mind that you are saving now so that you can soon become a homeowner.
  • Pay Yourself First - Some people believe that once they get all of their bills paid off they will then begin to save. In reality, you may never pay all of your bills in full. Saving money should be part of your monthly budget. When you pay your bills, you also pay yourself by depositing money into a savings account. Because you are a member of a Credit Union, you have the advantage of Payroll Deduction. Yes, you can actually set-up a recurring monthly, semi-monthly or bi-weekly payroll deduction to your Savings Account at your Credit Union. Doing this gives you peace of mind, knowing that you are systematically saving for your new home.

Your Credit History - The way you have used credit in the past and in the present is an important part of getting approved for a mortgage and in determining the rate you will receive.

Income vs. Debt - When you apply for a mortgage loan, CUFS will be calculating your monthly payment obligations with your monthly income. Guidelines vary, but lenders normally prefer that the amount you spend on monthly payments and housing expenses be no more than 41% of your gross monthly income. This is called the debt to income ratio. Even though your debt to income ratio is more than 41% of your income, you may still qualify for a mortgage loan if the Loan to Value (LTV) is low or with a down payment of more than 20%.

Click Here:

Contact a CUFS Representative

Apply Now