Tips for First Time Homebuyers

My boyfriend and I are in the process of buying our first home. Now I am at a bit of an advantage since I do mortgage lending, but I have learned some helpful information along the way that I feel would be helpful for others. Buying your first home should be exciting and somewhat stress free so here are some great tips:

1. Get an idea of what you are looking for. We started looking for houses by using www.trulia.com this website allowed us to download an app to our cellphones and sent us an alert whenever there was a new listing in our preferred area. We could also select the number of bedrooms, bathrooms and the price range we were looking for.

2. Get pre-approved. Before you even starting looking at houses with a Realtor make sure that you get pre-approved for a mortgage loan. It is important to make sure you can afford the houses that you are looking at. It is a simple process and will put you at ease when looking at houses. Stop in one of our branches and talk to a loan officer about getting pre-approved for a mortgage!

3. Select a Realtor that you trust. A good way to select a Realtor is to talk to your friends and family to see who they used. I can’t imagine what our home shopping experience would have been like if we didn't like the Realtor we were working with. Remember a good referral goes a long way!

4. Get an inspection. Once you have put in an offer on a house make sure to schedule an inspection. This is something that your Realtor will go over when you are putting together your offer to purchase. An inspector will look over the appliances, the roof, the siding, and pretty much everything else and give you a detailed report of everything that they look over. An inspection will sometimes allow you to make changes to your offer to purchase and give you an idea of what will need to be replaced in the next 5 years. This is a cost that you have to take care of on your own, but it is well worth the money.

5. Give yourself some time. Buying a house is going to take time and patience. Make sure you are prepared for that. In most cases you are not going to find the home you want the first time you go to look with the Realtor. Buying a home can sometimes take up to a month or longer depending on the loan type and what is in the offer to purchase. Be patient. It will be worth it in the end.

Image courtesy of digitalart at FreeDigitalPhotos.net 

Post by: Katie B.

If you missed the Home Building Seminar, you're in luck!

One of the area’s top builders, realtors, title and homeowner’s insurance agents, and mortgage lenders came together on October 21st to answer a range of home building questions, some of the most common of which are listed below. 

· Will my home fit on my lot?
· Which plan is best for my family?
· How much can I customize?
· What will my new home really cost?
· What are the best rates and financing programs?
· What is the building process?

If you missed the live event, you're in luck!  We recorded the seminar and you can watch each segment now on YouTube, just click the link below!  From shopping for a builder and a lot, to securing a construction loan and taking draws, to your end mortgage financing and insuring your new home, our seminar covered it all!

Horizon Community Credit Union Home Building Seminar 2014

If you have any questions after watching the recording, or if you would like to start the home building process, feel free to reach out to any of the participants listed on the contact sheet!

Green Bay Home Building Seminar 10/21/2014

Does your house still fit you?  Have you always wondered what it would be like to have a layout that you designed?  Are you afraid to tackle the building project because you don’t know who to turn to for questions; or maybe you don’t know what questions to ask?  Building a new home can be a daunting task.  We do not want you to tackle that alone.  How would you feel if there were experts available in one spot on one evening in October?

October 21^st, at 5:30 p.m. Horizon Community Credit Union (HCCU) will be hosting a free informational meeting at our Voyager Drive office.  We have assembled some of the best experts in the Green Bay area for a home building seminar.  One of the area’s top builders, realtor, title and homeowner’s insurance agents, and mortgage lenders will be present to answer all of your questions, ranging from some of the most common (listed below) to whatever issue is giving you a headache as you think through the process.

· Will my home fit on my lot?
· Which plan is best for my family?
· How much can I customize?
· What will my new home really cost?
· What are the best rates and financing programs?
· What is the building process?

HCCU is excited to host and be a part of this educational opportunity.  Bring along your questions and thoughts.  If you are planning to attend, you can RSVP by emailing info@horizonccu.com or calling 920-433-0122.  If there is a specific question or topic that you would like covered, please include that as well.  Not sure if you'll be able to make it?  No problem if you find out last minute that you can attend!  All are welcome - you do not need to be a member of Horizon Community Credit Union to take advantage of this educational opportunity!      

We look forward to seeing you.  We are here to help with life’s challenges.  Your success is our destination!

Post by: Pat J

Benefits of Taking Out a Loan with a CU vs. a Bank

Lower rates: Auto loan averages for CUs as of July were 2.85%  on a 36 mo. car loan vs. Banks @ 5.59%.  Therefore, banks are charging nearly twice as much for the same loan.

Easier to borrow: Community-based CUs tend to be easier to deal with than megabanks. Lending decisions are more likely to be made locally with more flexibility.

In addition, while few national banks make signature loans(unsecured loans), CUs regularly offer this type of loan to their members with good credit.  CUs also offer lower-dollar loans than banks.  You could get a $500 signature loan with a CU, but probably not at a bank because it wouldn't be profitable to them.

Loans through CUs are usually reviewed and completed in a much quicker time-frame.

Lower fees:  When it comes to fees, you will probably find better deals at CU’s than at giant commercial banks.  Whether is for fees to maintain loans, checking accounts, ATM fees, or penalty fees for overdrawing, you are more likely to have fewer and lower fees at your CU.

Credit Unions are typically smaller than banks so talking with, meeting with or working with a real live person happens much sooner in the loan process.  If you've been a member for a while, you might have even talked to the person who makes the decisions on the CU's loans.

Credit Unions offer loans that a lot of traditional banks do not.  Overall, CU rock compared to traditional banking institutions!

Post by: Lori S.

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

Home Equity Loan vs. Home Equity Line of Credit...what's the difference??

Both products allow you to borrow money using the equity you have in your home as collateral.

With a home equity loan, you receive a lump sum of money at closing. You are then required to make monthly payments on the loan. You will not be able to draw fund from the loan again.  Since the funds are disbursed in full at the closing, your monthly payments will be fixed.   Horizon Community Credit Union's home equity loans are adjustable rate loans, with the rate adjusting annually based on the terms spelled out in your loan.  This can impact your monthly payment amount some, but generally it's not a large change.

The other way to borrow against your home’s equity is with a home equity line of credit (HELOC). This works more like a credit card – you have a credit limit, and you only pay on the funds you draw out. Monthly payments are 1% or 2% of the outstanding balance on the line.  Much like a credit card, you can draw on the line multiple times.  Horizon Community Credit Union's HELOCs are adjustable rate loans, with the rate adjusting annually based on the terms spelled out in your loan.

On both products you can borrow up to 80% of the appraised value of your home. For example, if your home is valued at $200,000 with a mortgage of $100,000, you would be able to apply for a home equity loan in the amount $60,000.

What could you use the equity in your home for??
Debt consolidation
Home Improvement
College tuition
Autos, motorcycle, Recreational vehicles
Vacation

Post by: Kelly B

Demystifying Your Credit Score

So everyone talks about credit scores, but does anyone really know what goes into a credit score or what to do to raise their score?  Most people don’t really know, even if they think they do.  You don’t get a high credit score simply by paying your bills on time as many people think (although that does help).  There are actually a lot of things that are considered when compiling a score.  Take a look at the pretty graph below:

The importance of each category will vary for each person depending on their overall credit picture.  That means that someone just out of high school may not have as much emphasis put on the payment history category as someone who has had loans and other credit for years.  As that credit picture changes, so does the importance of each category.  Really clarifies things for you, doesn't it? 

While credit score does play a part in whether or not you will be approved for a loan, it isn't the only thing that lenders look at, so if your score isn't ideal that doesn't mean you can’t get a loan.  Your score can affect the interest rate you pay on your loans though, so it’s a good idea to know your score and take steps to improve it. 

Even though how your score is actually calculated may still be a bit confusing, knowing more about what goes into it will help you make good decisions in the future.  Here are a few simple things that you can do to improve your credit and score: 

1.   Take a look at your credit report.  There are a variety of websites you can use.  At www.annualcreditreport.com you can get a free report from each of the 3 bureaus annually, and if you find something on your report that isn't correct, they have information there to help you dispute it (not only that, but they have a TON of helpful info if you’d like to find out more about credit and credit scores).  When looking at other sites for free credit reports, watch for sites that make it appear to be free but actually only offer a free trial period.

2.  Make your payments on time.  To help you do that, set up automatic payments so that you don’t have to remember each month.

3.    Do things in moderation.  That means don’t max out your credit cards or other lines of credit.  Having only one card that is to its limit is not better than having 2 cards with smaller balances on each one, so keep your balances low on revolving debt (like credit cards).  Closing a bunch of cards or opening a bunch of cards isn’t going to help either.  Basically, don’t do anything drastic.

Post by: Cari J

Loan? Piece of cake.

So you need a loan. Now what? We realize the process can be a bit intimidating, and that you probably have questions. How do you get things started? What information do you need to give us? How long it will take to get approved? We want to help you through that! While the information needed and the time it takes varies some depending on the type of loan, having as many of the loan details as possible beforehand can definitely get you a decision and get you the money you need a lot faster.

For many people, the most convenient way to get started is to complete an application online. This gives us most of the information we need for the loan, and also gives us the OK to run your credit report to get the process rolling. If face-to-face is more your style, give us a quick call to schedule an appointment. That way the meeting is not rushed, and you know that a loan officer will have enough time to chat with you, take your application, and answer your questions.

Here’s the information you need to give us:

• Your personal info (name, address, date of birth, social security number etc.). And if you’re married, we will need the same info about your spouse even if he/she is not signing on the loan. 
• How much money you need, and what you need it for. Or if you’re refinancing a loan from somewhere else, your payoff amount on that loan. 
• How much you pay for your mortgage or rent monthly. 
• How much money you make and documentation (2 recent pay stubs or tax returns) for you, any cosigners, and your spouse (again, just if you’re married even if your spouse isn't signing on the loan). 
• Information about what you’re planning on buying with the loan funds (if applicable). 
• Information on what you are using to secure the loan, also referred to as collateral. This may be what you are purchasing, or may be something you already own. By having collateral securing the loan your interest rate typically decreases, sometimes significantly. 

Once we have all this information, we are able to process your application and get you a decision. At Horizon Community Credit Union, we review and decision all of our loans locally! Because someone within the CU or on the board of directors is the making the decision, we are committed to getting back to you as quickly as possible, often the same day for consumer loans! While our decision-making is also quick for real estate loans, there are more things that are required, such as an appraisal and title insurance. Closing times for real estate loans from start to finish are typically 30-45 days.

It’s really easy, we promise! So have you been thinking about making a purchase? Need a loan? Start an application today at http://www.horizonccu.com/loans.php or contact a loan officer at 920-433-0122! We look forward to helping you achieve financial success!

Post by: Katie B