Tuesday, November 23, 2010

Getting a mortgage close to home-the credit union difference

When looking for a mortgage you can go to a number of different types of lenders (the places that lend you the money to buy your home): banks, mortgage brokers, or credit unions are the most typical lenders. 

What’s a credit union?  The research continues to show that many people – particularly those under the age of 40 – do not know the difference between a credit union and a bank.  There are several overall differences that I won’t go into a whole lot of detail on here in this post, but if you’re not sure, I recommend this link.   This short video explains the big differences very clearly – and comically!

What I’d like to talk about here is the credit union difference, as it applies to mortgages or home lending.  Some of the unique characteristics of a credit union are that we are local and owned by our members (as customers are called in the credit union world).  In addition to offering competitive rates, our structure makes us particularly strong in providing excellent service.  When you are shopping for a mortgage, working with a lender that’s knowledgeable, accessible, and “hands on” is incredibly important, especially if you are a first-time home buyer.

Another distinct feature of many credit unions in Maine is our product offering.  I mentioned the “CU Promise”  program in a previous post with respect to the flexible down payment options.  However, there are other great features to this product, such as guaranteed same-day decision making, guaranteed local servicing, and guaranteed on-time closing.  And believe me, based on my years’ of experience in this business, you’ll be especially glad for the on-time closing feature! 

As you think about where you want to get your mortgage, think about the features that are most important to you in a lender then research various institutions.  It is likely you will find that credit unions offer the characteristics that you value.

Tuesday, November 9, 2010

Know your rignts

The home buying experience is a very rewarding timeline of events that lead to the “American Dream.”  I can assure you that many valuable lessons will be learned about you as a person and a better understanding of personal finance will be achieved along the way. 

As a homebuyer, you have rights. Understanding your rights at the start of the home buying experience is the first step towards preparation.

Here are some helpful links from the U.S. Department of Housing and Urban Development that are in place to protect YOU, the homebuyer:


Real Estate Settlement Procedures Act (RESPA) - http://www.hud.gov/offices/hsg/rmra/res/respa_hm.cfm



Another important step is to find out if home buying is the right choice for you.  Use the valuable link below to compare your current renting scenario versus how much you would like to borrow to buy a home.

Monday, November 8, 2010

Home Buying: Get Educated

Doing your own research before attempting to step into the home buying process is a great idea - you don’t buy a car before learning how to drive, right?  To make your dream come true, there are many steps within the home buying process and many different professionals that you will interact with along the way.

A great start to becoming educated is to attend a home buying course.  This will give you an overall scope of what to look for - and what to look out for - during your home buying adventure.  In a home buying course, you will learn more about:

  • Budgeting for a down payment
  • Understanding Credit reports
  • Shopping for the right loan
  • Shopping for a home
  • Mortgage process from A – Z

Another important feature of these courses is to help you understand who will be involved in your home buying experience, which includes:

  • Realtors
  • Loan Officers
  • Appraisers
  • Building Inspectors
  • Title Companies

Some courses will cost money (roughly $30-$50) but usually come with a Certificate.  This Certificate is good for 2 years and might be associated with closing cost assistance if you are qualified through Maine State Housing Authority.

 For more information and to find course schedules, visit the Homeworks website.  This particular site is affiliated with Maine State Housing, and offers course certificates that are valid for two years.  If you complete this course and finance through Maine State Housing Authority, you will also qualify for the Gift of Green (while supplies last).  The Gift of Green is a grant (that doesn’t need to be repaid) of $2,500 to be used towards closing costs.