Tips for the First-Time Home Buyer

Do you have dreams of buying your first home?  Whether you’re ready now, or even if you don’t think you’ll be ready for a year or two, it never hurts to be prepared.  Talk to a loan officer about different loan options and look over your current debt.  If you need to, take the steps now to boost your credit rating or pay down debt.  When you ARE ready to start shopping for a home, stop in to chat with that loan officer again and get pre-approved for financing.  This will help you determine the price range of homes that you can afford before you start looking.  You should also talk to a real estate agent about what you’re looking for and get signed up with email listings.  You’ll stay up-to-date with new properties while at the same time getting an idea of the types of homes within your budget.    

One thing that will help you from the start is saving. If you know you’ll be in the market to buy a home in the next couple years, you’ll want to start to save what you can. Putting down 20% will help you avoid having Private Mortgage Insurance (PMI) added on to your monthly mortgage payments.  PMI is insurance that allows lenders to safely accept a lower down payment than it would normally require.   Basically, it is a financial guaranty that protects the lender from losses in the event that you would default on the loan.  

On the other hand, if you don’t have 20% to put down, you can still buy a home with PMI.  As long as you have a conventional mortgage, once your loan is paid down to 78% of the home value the PMI will automatically drop off. 

Start making a list of what you do and don’t want in a home, similar to what you see on all those home buying TV shows.  This is an investment – and a pretty expensive one!  Keep in mind what you can and cannot change in a home.  You can always remodel the kitchen or put in hardwood floors but you can’t change the neighborhood or make the lot bigger. 

We’d be glad to help from start to finish on making your first home your dream home.   Call or make an appointment to talk to a loan officer to go over your finances or apply for a mortgage.  And once you’re in your home, we can even help you turn your house into your dream home by financing your remodel!  

Post by: Sara D

Image courtesy of phanlop88/ FreeDigitalPhotos.net

How early is too early to save for the holidays?

The Christmas season is one of the most joyful times of the year, but it can also be the most expensive. Buying wonderful gifts for loved ones can sure take a hit on your bank account. If you’re not prepared, it can be stressful! There is actually an account here at the Credit Union that is designed specifically to help save up for this time of the year!

In 1909 the first ever Christmas Club Account was created to help consumers save for Christmas. At that time there were only 350 total account holders. Today, people all over the country use this option to help save up money throughout the year, not only for Christmas but for other big events as well!

This account can easily be opened by visiting an MSR at one of our branches! Then you just deposit a little bit each month. On October 1st, the entire balance of the account will be transferred back to you, either by a transfer to your checking or savings account, or in a check. There are no restrictions on the amount of withdrawals or deposits made either, so if something unexpected comes up, you can use your Christmas savings without a penalty! Come on in to set up one of these fabulous accounts with us and start saving now!

PS – Christmas is only about 6 months away!

Post by: Emily P

Make a saving for a big purchase a little easier...

The other day my granddaughter said, "Grandma I can't believe I'm going to be a freshman next year!”  I told her that I couldn't believe it either.  That means in just a couple years from now, she will be driving.  After realizing that, I started thinking how happy I was for taking out an Add-On CD for her seven years ago at Horizon.  That savings will be a nice down payment when she wants to get a car.

The Add-OnCD at HCCU is one that starts at a minimum $100.00 – very affordable.  Unlike a standard CD, you can make additional deposits to an Add-On CD.  You can add as little or as much money to it, as long as you deposit monthly.  The interest rate is higher than a regular savings and is locked in for a year.  You can cash it in after a year or roll it over for another year at our current rate. 

If you need to set aside money for a purchase in your future, or maybe just for a rainy day, consider an Add-On CD.  For us, that money will come in handy the day my granddaughter finds a car!

Post By: Alice E