Buying a Home

For years, many people have known that real estate is among the best investments you can make. Recently, the mortgage market has changed and home financing has become more restrictive. Pro Fed would like to offer some helpful tips as you consider buying a home.

Pre-Approval

Before you go home shopping, talk to Pro Fed about getting pre-approved. This will help you decide what price range to focus on for your search. Here are some simple ways you can improve your chances of approval:

• Save your pennies. Having cash reserves has a positive impact on the loan decision.
• Pay your current debts on time.
• Delay taking on additional debt - it may negatively affect the amount of your approval.

Down Payment

An ideal situation for a home buyer is to have at least 5% of the purchase price of the home saved in advance. People buy homes with little or no money down, but it can be expensive. The down payment can be money you have saved, or a gift from an approved source. Here are some benefits of having a down payment:

• Getting a better interest rate.
• Reduced Private Mortgage Insurance (PMI) premiums
• Lower total monthly payments
• Increases equity

Having equity is valuable to have for future situations like remodeling, college expenses for the kids, or major home repairs and maintenance.

First Time Home Buyers

You may qualify for certain down payment assistance programs through the federal government or other organizations.

• Homebuyer Resources (Genworth Financial)
• Is Homeownership Right for You? (Freddie Mac)

Mortgage Options

Pro Fed offers a variety of flexible mortgage products and services. Try our mortgage calculators to find out how much house you can afford and your approximate payment.

If you have questions about buying a home, click here, or contact a mortgage representative.