First-Time Homebuyer Tips and Tricks

Buying a home is likely the biggest investment you’ll ever make. Don’t worry – we’re here to help you every step of the way.

Before your house search begins

If you’re thinking about buying in the next year or so, there are a few things you can do now to prepare:

Pay down other debt
Work on getting your finances in order. This includes paying down credit cards, auto loans, student loans and other debt. Having healthy finances will help set you up for success when it’s time to get a mortgage.
Improve your credit score
A good score will help you qualify for better mortgage rates and options. And on-time payments are the single most important factor in protecting and improving your credit score – so try to never miss a payment!
Save for house expenses
Buying a house is expensive and every little bit can help. Even if you don’t plan on making a large down payment, you’ll want extra cash on hand to help with closing costs, moving expenses and any home improvements.

Getting pre-approved for a mortgage

When you want to buy within a few months, the next step is to get pre-approved for a mortgage, which is when a lender confirms how much they will lend to you based on your finances. Getting pre-approved will help you get a clear picture of exactly how much house you can afford. Plus, it shows sellers that you’re a serious buyer.

You can start your pre-approval online or visit our branch to do it in person. You’ll usually want to have some paperwork with you, including:

Paystubs and bank statements for the last two months
Tax returns and W-2s from the past two years
Details of your monthly debt obligations

You might need some other information too, depending on your situation. (For example, if you’re self-employed or receive child support or alimony.) Give us a call and we can walk you through what to expect and how to complete your pre-approval.

Choosing between mortgages and lenders

When it comes to mortgages, you have options! Be sure to shop around, but know that the team at Somerville’s Credit Union is dedicated to providing the best service and support you’ll find anywhere.

Explore our options for first-time homebuyers – designed to help you save money and make the homebuying experience as stress free as possible with:

Reduced down payment options
Flexible qualifications and requirements
Reduced private mortgage insurance for qualified borrowers

More factors to consider when buying

Buying a home is a lot less stressful when you know what to expect. Here are a few other tips to keep in mind:

Get a real estate agent
Find someone you trust, who knows the local market, and will be your advocate when it’s time to make an offer. If you’d like a referral, Somerville’s Credit Union works with a reputable real estate brokerage that offers buyer and seller rebates – contact us for more information.
Make your must-haves list
Before you start touring homes, make a list of what you absolutely need in a home, and what would just be a bonus. Share that list with your real estate agent to save time and energy.
Decide on a down payment
While 20% is the gold standard, most people don’t put down that much cash when buying their first home. Find a balance between how much to keep in your savings and how much to put toward ownership.
Consider all your loan options
Fixed-rate mortgages are popular, but they’re not your only option. If you’re buying a starter home that you’ll be in for just a few years, an adjustable-rate mortgage (ARM) might make more sense. Talk to us and we’ll help you figure out your best path.
Plan for all monthly housing costs
Your mortgage is the big one, but it’s not the only cost. Make sure your budget accounts for homeowners insurance, property taxes, any HOA fees, and utilities. Plus, you’ll want to be ready for repairs and maintenance as needed.

Ready to take the next step?

Our first-time homebuyer program is designed to make your homebuying journey a success. From fast pre-approvals to stress-free closings, we’re with you every step of the way. Visit the branch, give us a call at 617-625-0898, or apply online whenever you’re ready.