Mortgage Guide | First Time Homeowners in Central Iowa

How to prepare for purchasing your first home!

About Premier Homeownership Published July 7, 2023

Mortgage Guide | First Time Homeowners in Central Iowa

Mortgage Tips for New Homeowners in Central Iowa

Buying a home can be an exhilarating experience, but for the first-time homebuyer the process can be confusing and very overwhelming. Luckily, we have some advice you can follow to make your dream of owning a home easier and an enjoyable experience!

What type of Mortgage is best for first-time buyers?

Premier offers a variety of mortgage financing options for first-time home buyers.  Each situation can be different, so understanding your needs and the homebuying process is key. There are a number of mortgage options for you to choose from. Premier offers conventional mortgages, lot loans, VA loans, FHA loans, and more! With that, you should choose the term that makes you most comfortable. Terms can range from 30 years on down, with many “ARM” options that offer flexibility. Talk with your mortgage lender to make sure you get the solution that best fits your situation.

A home loan can have many pieces. Beyond the monthly mortgage payment, homeownership will bring with it things like; property taxes, homeowners insurance, possibly private mortgage insurance and a Homeowners Association fee depending upon where you choose to live. Taking all expenses into consideration will affect the overall payment and what you can budget for the home.

What is the easiest type of mortgage to get approved for?

Overall, the mortgage application process is lengthy and will look at things like employment history, credit scores and additional assets. Luckily, Premier makes the application process simple!  Our experienced team of Mortgage Loan Officers will guide you through the process from application to closing.

Getting educated on both the mortgage application as well as the home buying process will help give you a better understating of how things like credit scores and yearly income play into the success of becoming a homeowner. A higher credit score will typically decrease the interest rate that you receive. And for a purchase of this size, you want the lowest rate you can get! Making good decisions such as paying down credit cards, consolidating debt and paying off any late charges are all great first steps to achieve this. It may take time – but in the long run will be well worth it.

It is important to know that the process can take anywhere between 30-90 days to close after receiving all the necessary documents – not after having the first conversation with a mortgage officer. The key is to keep a realistic outlook on the experience and know that bumps might come up on this road, and that is part of this exhilarating experience. The Mortgage Officers here at Premier Credit Union are ready to take this journey with you, side by side.

How much do you have to put down on a house in Iowa?

While not everyone can put down a sizeable down payment, it’s a good idea to start saving early so that you can invest as much as you can. This will decrease your monthly payments after the purchase of your new home. There are several first-time homebuyer grants in place for you to apply toward your down payment or overall mortgage. These assistance programs are put in place to help people achieve the dream of homeownership. It’s free money, so why not take advantage of it? Premier is able to offer no down payment mortgages and has access to the Homestart grant program that offers downpayment assistance for qualifying  first-time buyers. Talk to us today to see what you qualify for!

Having a pre-approval letter is crucial – getting this letter will show real estate agents and sellers that you are approved to purchase up to a certain amount. This will typically make the entire process go much smoother and get you out looking at homes quicker! It can sometimes give you an edge over those without one. Stop by our offices in downtown Des Moines, Ames, Urbandale, and West Des Moines to get started!

About us:

Premier Credit Union is a full-service financial institution serving Central Iowa, with branch offices in downtown Des Moines, Urbandale, West Des Moines, Sioux City and Ames. At Premier, our mission and reason for existing is to Make Life Better for you, our member!

 

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