Your Guide to Buying a Home—With Confidence
🕒 3-minute read
At Rave Financial Credit Union, we know that buying a home is more than a big decision—it’s a major life milestone. Whether you’re a first-time buyer or planning your next move, we’re here to guide you every step of the way, so you can unlock your future with confidence.
Know What You Can Comfortably Afford
Before you scroll through listings or step inside an open house, it’s important to take a clear look at your finances. Review your monthly income, savings, and regular expenses to determine how much home you can comfortably afford—without stretching yourself too thin.A good rule of thumb? Keep your monthly mortgage (including taxes and insurance) within 28% of your gross monthly income. Going beyond that can make it harder to save for life’s other important goals—like retirement, education, or your dream vacation.
Understanding the Down Payment
Down payments can vary depending on the type of mortgage loan you qualify for. If you’re eligible for a VA or USDA loan, you might be able to buy a home with 0% down. More commonly, homebuyers opt for conventional or FHA loans, which require as little as 3%–5% down. Some lenders may ask for more depending on your credit score, debt-to-income ratio, and other factors.
You can use savings, gifted funds from family, or possibly even your 401(k) to help with your down payment. And if you’re unsure where you stand, give us a call at (409) 924-5213, and a Rave Financial mortgage expert can help clear things up.
Get Pre-Approved
A loan pre-approval gives you a realistic idea of what you can borrow and helps strengthen your offer when you’re ready to buy. Plus, it makes house hunting less stressful—you’ll already know what’s in your price range. We recommend comparing options and choosing the loan that aligns best with your budget and goals.
Start House Hunting with a Plan
As exciting as home shopping can be, start with your priorities: think location, commute, schools, neighborhood vibe, and property taxes. And while falling in love with a home is easy, remember to stay within your budget—future you will thank yourself!
Consider working with a trusted real estate agent, especially one recommended by friends or family. A good agent will help you focus on homes that match your wish list, timeline, and price range.
Make a Smart Offer
Once you’ve found “the one,” work with your agent to make a competitive offer based on recent sales and current market trends. Always request a professional home inspection to uncover any issues that could affect your final decision or price.
Learn the Lingo
Here are a few key terms you’ll want to know:
- Term – The length of your loan, usually 15 to 30 years.
- APR (Annual Percentage Rate) – The yearly cost of borrowing money, expressed as a percentage. It encompasses the interest rate, plus any fees associated with the loan, like origination fees, points, or closing costs.
- Points – Upfront fees that can reduce your interest rate.
- Fixed-Rate Mortgage – A loan with the same interest rate for the entire term.
- ARM (Adjustable-Rate Mortgage) – A loan with a rate that can change over time.
Buying a home doesn’t have to be overwhelming. At Rave Financial, we’re not just here for your mortgage—we’re here for your milestones. Let’s make your dream home a reality, together.
Download our 5-Step Home Buying Guide
