First-Time Home Buyers

Get an understanding of terms and acronyms used by agents and lenders during the home-buying process. Here are some common ones:

• Annual Percentage Rate (APR): The interest you pay over the term of the loan (including origination fees and certain closing costs). WCU does not charge origination fees.
• Debt to Income Ratio (DTI): The percentage of your gross monthly income that goes toward debts owed.
• Private Mortgage Insurance (PMI): Protection for the lender if you stop making payments or default on your loan.
  Whitefish Credit Union does not require PMI. According to Zillow®, the premiums for PMI usually range from $30-$70 a month for every $100,000 borrowed. So, for example, if you bought a home with a value of $300,000, you’ll pay about $150 a month for PMI.
• Rate Lock: It protects your rate from increasing before you close.

• Credit will be a factor in determining the terms of your loan, like rate. Review your credit report ahead of time, so you can address any issues or errors that may affect your application. Ask a Whitefish Credit Union professional for guidance on any credit score issues you may be facing.

• Purchase price. The more expensive the home, the higher the down payment may need to be. Some loans require buyers to put down 5% of the home’s purchase price; others may require as much as 20%. As an example, 5% of a $150,000 home is $7,500; 5% of a $300,000 home is $15,000.
• Desired interest rate. If you’re able to put more down upfront, it could generate a lower interest rate. Make sure you don’t overextend yourself, though, and thoroughly consider just how much you can safely put down.
• Desired monthly payment. When you put more money down toward the purchase price, you’ll reduce the amount of money you have to borrow. This, in turn, makes your monthly payments smaller. Paying only 5% of a home’s purchase price will result in higher monthly mortgage payments than if you put down 20%.
• Loan type. Different loans come with different down payment requirements. Talk to your loan officer to find out what type of loan would be best for you.
  
  *Calculator is for illustrative purposes only and use does not guarantee credit will be granted.

• Date of birth
• Social Security Number
• Whitefish Credit Union Share account number
• 2-years’ address history
• 2-years’ work history
• Gross monthly income to be used for qualifying
• Any other income to be considered for qualifying
• Deposit account and asset information held by financial institutions other than Whitefish Credit Union to be considered for qualifying
• Current tax, homeowners/condo dues, insurance and lien information
• W-2 forms and personal tax returns from last 2 years
• Pay stubs from last 2 months
• 2 months of bank, retirement and investment accounts statements
• If you’re self-employed, business tax returns will be required

• Prequalification lets you know how much you can confidently offer when you find the right home.
  
  Our application can be done completely online, in about 20 minutes. After completing your application, your Mortgage Loan Officer will reach out to help answer any questions you may have about the type of loan, what you can expect going forward, and they may ask for any additional items needed to make a final decision. Prequalifications can be provided electronically and remain good for 60 days.
  *Not all applicants will qualify.

This is the part we've all been waiting for - finding your new home! Once you've found the one, reach out to your lender right away and let them know. Timing is the name of the game now. 
 

Final Review & Closing

Your last step in the home-buying journey!

1. ​​​Your Mortgage Loan Officer will contact you a few days before to review your final fees, loan terms, and the total amount of any funds due at closing.
2. Schedule a final walk through to make sure the condition has not changed since your last visit, and any agreed-upon repairs have been made.
3. Start calling utility companies. Some utility activation or installation needs to be scheduled in advance. Make sure you’re set up and ready to go for move-in day.
4. On closing day, you’ll sign your final set of documents to complete the process. Review the information carefully, and ask questions before signing.

Congratulations on your new home!