Your Home Buying Guide: How to Get a Mortgage and Navigate the Real Estate Market

Are you ready to buy a home but unsure where to start? Whether you’re a first-time homebuyer or looking for your next house, understanding the financial steps, like getting pre-approved for a mortgage and budgeting for closing costs, is essential.

Let’s look at the key steps to homeownership so you can buy a house and easily navigate the real estate market.

Step 1: How Much Do You Need for a Down Payment?

Your down payment is the upfront cash you pay before securing a mortgage. The amount varies based on your loan type, but you might be able to snag a home with as little as 3% down. But remember, on a $300,000 house, that’s still $9,000.

Luckily, some programs offer down payment assistance or zero-down options. Scott Credit Union’s mortgage team can help you explore these options.

Step 2: Why Mortgage Pre-Approval Is a Must

Before you fall in love with a house, get pre-approved for a mortgage! This tells you how much home you can afford, your estimated monthly payment, and the best loan options for your situation.

Scott Credit Union’s mortgage loan originators will review your income, credit score, and savings to match you with the right loan. And remember, a pre-approval letter makes you a stronger buyer in a competitive market!

Step 3: What’s Included in Your Monthly Mortgage Payment?

Your mortgage payment covers more than just the loan. Expect to budget for:

• Loan Principal & Interest (your mortgage)
• Property Taxes
• Homeowners Insurance
• HOA Fees (if applicable)

Scott Credit Union helps you calculate your total homeownership costs so there are no surprises. Plus, with SCU Insurance Agency, you can also explore homeowners insurance options.

Step 4: Don’t Forget About Closing Costs!

Many buyers overlook closing costs, which typically range from 2-5% of the purchase price. These one-time fees typically cover the home appraisal and inspection, title search and title insurance, as well as the loan origination and processing fees.

For example, on a $300,000 home, closing costs could be between $6,000 and $15,000. Some lenders offer closing cost assistance—ask Scott Credit Union about your options!

Step 5: Make an Informed Decision

Buying a home is a major milestone, and having the right financial partner makes all the difference. Scott Credit Union’s mortgage professionals will help you:

• Find the best mortgage for your budget
• Understand your loan options
• Navigate the homebuying process with ease

Ready to start? Contact Scott Credit Union today to explore your home loan options!

Homebuying FAQs

Q: How much do I need for a down payment on a house?

A: It depends on your loan. You might be able to snag a home with as little as 3% down, but some programs can help with lower down payments and even no down payment options.

Q: How do I get pre-approved for a mortgage?
A: You’ll need to provide your income, credit score, and financial details. Scott Credit Union’s mortgage experts can guide you through the process.

Q: What are closing costs when buying a home?
A: Closing costs typically range from 2-5% of the home price and cover loan fees, appraisals, and title insurance.

Take the Next Step Toward Homeownership

Buying a home is a big decision, but with Scott Credit Union by your side, you can navigate the process and find your dream home. Whether you’re a first-time homebuyer or looking for your next home, our mortgage team is here to help.

Get pre-approved today! Contact Scott Credit Union to start your homeownership journey.