A Guide to Buying a Home

home in front of beautiful sky

Life’s most precious memories can be made in your first new home and we know how important it is to find the perfect one. That’s why home ownership is one example how we are doing our part to make dreams come true. We offer our members lower loan rates, less fees, and a knowledgeable staff that can make the home buying and refinancing process easier and stress free. Have you been thinking about buying a home but don’t know where to start? Follow our Guide to Buying a Home:

  1. Preparation
    1. Evaluate your financial situation
    2. Understand the additional expenses associated with buying a home
    3. Save for a potential down payment
    4. Build a strong credit score
  2. Get Pre-Qualified*
    1. Talk to us about a pre-qualification
    2. Your pre-qualification will determine how much you can afford
  3. Find a Real Estate Agent
    1. Get a referral from your friends or family
    2. Use online resources like realtor.com
    3. Understand all agreement and contracts
  4. Choose the Right Property
    1. Search for homes within your price range
    2. Browse online resources like www.trulia.com or www.zillow.com
    3. Ask yourself: Does the home fit your needs?”
    4. Consider location and schooling
    5. Research property taxes
  5. Make an Offer*
    1. Make a reasonable offer
    2. Consider any contingencies
    3. Be ready to counteroffer
    4. Sign contract and disclosure
  6. Finance the Property
    1. Apply for a mortgage
    2. Provide documentation, such as pay stubs and W-2 forms
    3. Provide Purchase & Sale Agreement
    4. Formally begin loan application
    5. Discuss financial options (Fixed-Rate, Adjustable Rate, etc.) *
    6. Review Closing Costs
  7. Final Review
    1. Be cautious of deadlines
    2. Have your home inspected by a licensed inspector
    3. Search for Homeowners Insurance
    4. Ask yourself: “Do I need disaster, flood, or fire insurance?”
  8. The Closing
    1. Provide Photo ID and one other form of identification
    2. Signing of documents between buyer, seller, and lender
    3. Disbursement of funds
  9. Post Purchase
    1. Secure closing documents and contracts
    2. Set up utilities
    3. Change locks
    4. Inform government about homesteading
    5. Change Driver’s License
    6. Meet your new neighbors

Now, let’s go over how UKRFCU can help you get your dream home:

Requirements on getting Pre-qualified

Talk to an UKRFCU Loan Originator about a pre-qualification. A pre-qualification is when you supply an overview of your financial history to us. We’ll then review this information and provide you a specified amount based on your income, assets, debt and credit.

Your pre-qualification will determine what you can afford to help you choose which houses and area you should be considering. To determine your maximum mortgage amount, we’ll look at your credit history, available cash for down payment and closings costs, income, and existing debt and financial obligation.

Some costs that are associated with a getting a mortgage is loan fees (Credit Report fee, Appraisal fee, etc.), Closing costs (usually run between 3% and 7% of the purchase price), earnest money deposit, down payment, and reserves.

Offer Accepted. Now what?

After you’ve found your dream home, made an offer, and it was accepted, apply for a mortgage at UKRFCU. Our Loan Originators can be important in putting together the Purchase & Sale Agreement. They will then formally begin the Loan Application and discuss types of loans, terms, and the additional documentation required. Once everything is set, you can sign the application and disclosure.

Mortgage Loan Options

We provide the following Mortgage loan options: Fixed-Rate Mortgages and Adjustable Rate Mortgages:

  1. Fixed-Rate Mortgages means that the interest rate is set when you take out the loan and will not change, in particular your principal and interest payments won’t change. Members find this loan appealing because it’s more stable and you can budget in advance.
  2. Adjustable Rate Mortgages means that the interest rate may change periodically. Monthly payments can fluctuate throughout the life of the loan. Members find this loan appealing because when rates go down, they don’t have to refinance, and payments are typically lower.

Please note, to apply for a Mortgage, you must be a member of UKRFCU. Start your Mortgage Application process today by clicking here. For any additional information, rates, or questions, please call 215-725-4430 to speak with a Loan Originator or visit our Mortgages page.