When it’s time to purchase a home, many people go through extensive mortgage research, which comes with many questions about the mortgage process. After all- it will be the largest and most significant purchase of your life!

Getting the right home loan can make or break what homes you can purchase- and can be the difference between the home of your dreams, or a hit to your self-esteem. To help set you up for success in the home buying process, here’s our top 5 tips for mortgage:

1. Pre-approval is king - shop with purchasing power in hand! It’s easier to shop for a home when you know how much home you can afford- and pre-approvals are an easy way to ensure you can house shop worry-free. Talk in advance with a Financial Center Representative and get pre-approved so you and your Realtor know just how much home you can afford.
2. Get the right documents early on. It never hurts to be prepared- collect these documents and financial records and keep them in one place for a fast track in the mortgage application process: one month of recent paystubs from all family income, two years of your family tax return filings, the latest three months of all your bank statements, and you'll need documents explaining any large non-payroll deposits depending on the type of loan your mortgage lender recommends. You may need to provide a few additional pieces of information.
3. Pay down debt before applying. Your credit score affects your loan interest rate- and that can make a big difference in interest paid over time. Do as much as possible to improve your credit score and try to reduce your debt ratio of revolving credit under 35% of your income. You want to qualify for the lowest rate possible – which can save you thousands of dollars in interest savings over the life of your loan.
4. Know exactly what's in your credit report. Once a year, you can request a free copy of your credit (Try a provider like Credit Karma). Looking at your credit report will allow you to not only know your general credit score but also help you identify and correct any errors on your report.
5. Avoid major purchases and job changes. This will significantly affect your debt to income ratio, and may affect your application process at most financial institutions.

Final Tip: When You’re Ready for a Home Mortgage

Speak with a Financial Center First Credit Union mortgage specialist! We understand that there are no “one loan fits all”. That’s why we offer so many flexible mortgage options including FHA, VA, USDA, and conforming and non-conforming loans at very competitive rates.

We understand your needs are unique and after we get to know you, we will provide you with the mortgage options that will be the best financial fit for you and your family’s new home.

Let’s talk – When you’re ready for a new home mortgage or considering refinancing, visit your nearest location or give us a call at 317.916.7700 option 2 to speak with a home mortgage expert.

Get started today at www.fcfcu.com/myhome.