How to Choose the Best Mortgage

When you decide it’s time to purchase a new home, whether to stake your first claim as a homeowner or to acquire a space that suits your needs, the process often seems very exciting. That is, at least, until you reach the stage where you must choose a mortgage. Hunting for houses is lots of fun. Hunting for a mortgage? Not so much — most prospective buyers see it as a stressful but necessary step. Finding the financing you need to afford the home you want is a critical step, but there is more to it than sitting down with a loan officer and saying, “Give me a mortgage.”

How do you find the option that’s right for your finances? What kind of interest rate can you get, and how much of a down payment should you assemble? The answers to these questions differ from person to person, but there are some things common to the entire process of finding a mortgage. Let’s explore what you need to know to be able to find financing that fits your dreams.

Begin by Getting the Basics in Order

Before you can start shopping for a mortgage, you need to ensure you have everything lined up to make that process more straightforward. For example, start by thinking about your goals in purchasing a home and what kind of budget you have to work with; your finances should be in good shape before you begin. Remember that financial institutions will consider multiple factors, such as the size of your down payment and your credit score when setting terms such as your interest rate. 

Most professional suggest you select a mortgage provider before making an offer on a home to strengthen your negotiating position. If your credit score isn’t good right now, consider taking some time to rehab it to reach a stronger position. Once you’re satisfied that you’re in a good financial position to take the next steps, you can figure out what mortgages might enable you to purchase. Determine what you can afford by using an online mortgage calculator to ballpark your ideal monthly payment to understand what kind of terms you may hear at the start of your search. 

Should You Take a Mortgage with a Bank or a Credit Union?

This is the big question and the area where many buyers encounter the most frustrations. The average person may think getting a mortgage to buy a home is as simple as walking in to a bank branch and filling out an application. However, big banks are out for one thing: profit. That motive means they need to make very careful decisions surrounding the risk of granting a mortgage. As a result, their standards are higher, and they are more likely to deny applicants who do not look excellent on paper. 

Credit unions, such as Resource One, are a bit different. Non-profit and member-focused, credit unions aim to provide more accessible financial services for the average person. While that doesn’t mean a rubber stamp for mortgage applications, it does mean greater flexibility and a willingness to work with various types of applicants. We also strive to provide a better kind of customer service — one that focuses on you as a person and as a member of our credit union, not as simply another account number on a file. 

What Type of Mortgage is Right for You?

At Resource One Credit Union, we’re excited to help you along in your journey to purchasing a new home for yourself or your family. To that end, we provide a range of mortgage products suited to different types of individual situations. Backed up by excellent customer service and lower rates, our mortgages offer highly competitive options. What kinds of choices do we give you?

  • Fixed Rate Mortgages. A type of mortgage where your interest rate remains the same for the duration of the loan, this type of financing guarantees you’ll always have the same monthly payment, making it easier to plan. 
  • Jumbo Mortgages. Designed for very large loans, these options offer lower rates for those purchasing more expensive homes. 
  • Mortgages for veterans. If you’re a veteran of the US armed forces, you may qualify for a loan that requires no down payment. Ask us about how to apply for a VA loan today.
  • Mortgages for first-time homebuyers (FHA loans). Is this your first time purchasing a home? An FHA loan may be the ideal choice for you. If you have poor credit and can’t afford a substantial down payment, these solutions are perfect for getting you into a good home. 

Across these many options, there is something for every prospective home buyer to use to help finance their purchase. With the Resource One team backing up your efforts, you can trust in making a smart decision for your financial future, too.

Making the Home Buying Process Less Stressful at Resource One Credit Union

With the right information in hand, choosing a mortgage and locking in a reasonable rate on your dream home is within easy reach. 

Interested in learning even more? If you’re in the process of preparing to buy a house, we’d love to help. Explore more information about what you need to know to put yourself in the right position to find the best mortgage terms possible. We have in-depth answers to important questions such as:

We encourage you to take a deep dive on all these resources but don’t hesitate to reach out to the Resource One Credit Union team, too. We’ll help you navigate how to choose a mortgage that serves you best. Find out how to get in touch today to get started.

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