• Do you plan to stay in the area for the foreseeable future?
• Do you enjoy routine maintenance and improvement projects?
• Is your income secure?
• Are you up-to-date on all your bills?
• Do you have some savings to use as an adequate down payment?
• Do you want the responsibility of owning a home?

If you can answer yes to most of these questions, you probably are ready for home ownership.

Q. Are home ownership expenses different from renting?
A.Not exactly. While home ownership is certainly satisfying, it does involve some expenses that are not so obvious when you are renting. For example, there may be upfront purchases of such things as a washer and dryer, carpeting and curtains plus lawn and garden tools. And of course there are ongoing expenses like property taxes, utilities, waste removal and routine maintenance and repairs. But don't worry, a wise planner can set up a household budget to accommodate these expenses.

Q. How much house can I afford?
A. This question is probably the most frequently asked by first time home buyers. After reviewing your finances to evaluate the amount of debt you are carrying, it's a good idea to visit your Credit Union and take advantage of a free service called "pre-qualifying." Call our Real Estate office today at (407) 647-8252 to take advantage of this fast and easy service.

Q. How much money will I need for a down payment?
A. Typically, an experienced loan officer will help you determine your down payment when you "prequalify." As a general rule, the minimum down payment required to buy a house is 5% of the purchase price. It's important to be aware that there are other charges (in addition to the down payment) called "closing costs" that will also have to be paid. These charges can amount to 2%-3% of the mortgage amount.

Q. What type of loans are available for home financing?
A. There are many different ways to finance your purchase. For example, you can choose a fixed rate mortgage where you "lock-in" a guaranteed rate. Or there's an adjustable rate mortgage (ARM) where your rate can vary with an "index" similar to the often cited Prime Rate. These loans include limits on how much the rate can change each year, and over the life of the loan. "Balloon loans" are popular with some buyers who know they plan to move or refinance in 5 to 7 years. Most loans can be paid down on a schedule ranging from 15 to 30 years. Of course, seeking the counsel of a professional mortgage loan officer can help you sift through your options and determine a financing plan to meet your individual needs.

Q. Is a 15 year term or a 30 year term best?
A. It all depends on how quickly you want (or are able) to pay off your loan. With a 15 year mortgage, you own the home in half the time and you typically pay 1/2% to 1% less in annual finance charges. Plus, your total interest charges over the life of the loan are even lower because you pay off you debt sooner. But your monthly mortgage payment is about 10% to 15% higher than with a 30 year mortgage. And since you pay less interest on a 15 year mortgage, your tax deductions are lower.

Buying your first home doesn't have to be complicated or time consuming. The people at your Credit Union can answer any of your questions and provide you with information and friendly service in an atmosphere of full disclosure. We want you to feel at home with us and we are here to help you make the purchase of your first home an exciting and enjoyable experience. Take advantage of your Credit Union's free "prequalifying" service today by calling our Real Estate office today at (407) 647-8252.

Take the first step...
PRE-QUALIFY before shopping for a home.

This service is free to all members! Our goal is to provide you with all the information you need to make an informed decision and to assure that you have the financing needed to purchase your new home.

At FAIRWINDS Credit Union we believe pre-qualifying is much more than just informing members of how much they can borrow. We want you to be a knowledgeable buyer. Our prequalifying service is designed to help even the most savvy investor understand mortgage terminology, budgeting before and after home ownership, the variety of financing options available, and the overall complexities of home financing.

When you pre-qualify with FAIRWINDS, you'll receive:

• Information - about how to buy a house, the loan closing, maintaining your property, and a glossary of real estate terminology.

• Consultation with one of our professional mortgage lenders in-person or over the telephone, whichever you choose. We will answer your questions and explain your options in a friendly atmosphere of full disclosure.

• A complete estimate - including expected monthly payments and cash required to close.

• A letter of prequalification as proof that, when you find your dream home and are ready to negotiate with a Realtor or property seller, you can obtain an affordable mortgage.