News June 2017 issue Buying a Home 5 before

News 5 Community June2017issue

Steps to take before

Buying a Home

Thinking about buying your first home? Before you can

unlock the door to homeownership, you have to take some im-

portant first steps. From finding the perfect location to financing your

purchase, shopping for your first home has challenges that go beyond

curb appeal and interior features.

Here are 5 important steps to take before buying your home.

1. Plan for the OTHER expenses: Many first-time homebuyers decide to buy when they feel ready for a mortgage. But just because they can afford the mortgage payments doesn't mean they can afford to own a home. Property insurance, taxes, homeowners association dues, maintenance, and higher electric and water bills are some of the costs that first-time homebuyers tend to overlook when shopping for a place.

Keep in mind property taxes and insurance have a tendency of going up every year. Even if you can afford it now, ask yourself if you'll be able to afford the increased costs later. Even though it's your first home, you must think of it as a long-term commitment. If you have to switch jobs in a year or two, and may have to move for the job, you should think twice. Ideally, you should picture yourself living in that house for 5 to 7 years.

2. Mortgage Prequalification: Homebuying doesn't begin with home searching. It begins with a mortgage prequalification -- unless you're lucky to have enough money to pay cash for your first house.

Don't be afraid to get prequalified. Don't fear the lender may tell you that you don't qualify for a mortgage or they qualify for a loan smaller than expected. It is better to know then pick a price range out of the sky and say, `Let's go look for a house'.

First things first- you get preapproved, and then you find a home. That way, you'll make a financial decision versus an emotional decision.

3. Get References: New to the homebuying game? You'll need a reputable real estate agent, a good loan officer or broker, and perhaps a lawyer. Venturing into this process alone, without professional help, is not a good idea. While every rule has its exception, generally, first-time homebuyers should

not try to deal directly with the listing agent.

If you hire an agent without a referral from friends or family, ask the agent to provide references from previous buyers. The same goes for loan officers or mortgage brokers. It's crucial to find a professional who will give you truly independent advice. Sometimes that

means hiring a lawyer.

4. It's risky to deplete savings: Spending all or most of their savings on the down payment and closing costs is one of the biggest mistakes first-time homebuyers make. Some people scrape all their money together to make the 20% down payment so they don't have to pay for mortgage insurance, but they are picking the wrong poison because they are left with no savings at all.

Homebuyers who put 20% or more down don't have to pay for mortgage insurance when getting a conventional mortgage. That's usually translated into substantial savings on the monthly mortgage payment. But it's not worth the risk of living on the edge.

I'd take paying for mortgage insurance any day over not having

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money for rainy days. Everyone -- especially homeowners -- ardize the closing. Buyers, especially first-timers, often

needs to have a rainy-day fund.

learn this lesson the hard way. They sign the contract then

5. Keep Your Wallet Shut:

they want to go buy furniture for the house or a new car.

You have prequalified for a loan. You found the house you wanted. The contract is signed and the closing is in 30 days. Don't celebrate by financing another big purchase.

Buying a home is possibly the largest single investment of your lifetime. You want to make sure it's done right.

Contact WCCU today to get started. Our mortgage

Lenders pull credit reports before the closing to make sure the

professionals will prequalify you and help you

borrowers financial situation has not changed since the loan

determine the best mortgage to fit your needs!

was approved. Any new loans on your credit report can jeop-

Call us today at 401.596.7000

Article adapted from , `5 First-Time Homebuyer Mistakes'; Polyana Da Costs 5.9.17.

WCCU in the News Lookingfor Rewards?

NHS attends WCCU CU4Reality Fair

Earn Double Points* when you Shop Local

with our Rewards Platinum Visa? Credit Card.

NHS Students

Redeem points for Cash, Merchandise & more!

WCCU Cares: In May, over 100 students from Narragansett High School attended our WCCU CU4Reality Financial Literacy Fair. Armed with a career/salary- students secured housing, food, transportation,& more to complete a real-life budget. Those same students also completed a 9-course online financial literacy program, also sponsored by WCCU, & received their Certificates of Completion. Congratulations!

A special thanks to our Staff and our local businesses who helped man tables at the fair. We appreciate your

commitment to financial literacy.

Members Financial Services- Wayne LaGasse u Ocean Roads Realty- Maria Theriault u Rose and Kiernan Insurance- Dawn Pater u Total Look Salon- Michelle

Waterman u Traveling Gypsy- Lisa Roy u Verizon- Dave Moone/Kelcey Marks u Walmart- Brenda Richmond.

Upgrades to Mobile App Coming End of June

At WCCU, we're always looking for ways to improve our eServices. Our latest upgrade enhances our Mobile Banking App.

Features added will include the ability to add, edit and delete Payees & Payments within Bill Pay. Also, in regards to your ATM/Debit card, you will be able to activate your new card, report it lost or stolen, and suspend the card tempo-

rarily, all from your WCCU Mobile App.

WCCU offers Rewards, Low Rate, Secured & Business

Platinum Visa? Credit cards!

Apply today online or at our branches!

* Double points are earned on all purchases made in Washington County, RI or New London County, CT. For details about rates, fees, & other important cost information, a card application, Disclosure and Agreements, or to apply online, please visit . Offer may change at any time. Restrictions may apply.

mbers Achieve Financial Success!

Helping Our Me

As an added security feature, fingerprint login will be available for Android devices. And finally, location maps will be integrated to give you directions to all of our branches.

Download our Mobile Banking App today and make your life a little easier, banking on the go with WCCU!

Westerly ~ Richmond ~ South Kingstown 401-596-7000

This Credit Union is federally insured by NCUA. WCCU NMLS ID#: 518892

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