Make the home-buying process easy!
Chesterfield Federal Credit Union can help you every step of the way.
1) Determine how much you can afford
Federal Credit Union offers a variety of calculators to help you
determine exactly what costs you can expect with a home mortgage so you
can determine what you can afford. When you know how much you can
afford, it helps with your home search.
2) Get pre-qualified
Before you go shopping for your home, you need to know how much
money you have available to spend. Chesterfield Federal Credit
Union can help you determine how much home you can afford, then
"put it in writing” in a mortgage approval letter. Even
if you contact a real estate agent first, the agent will urge
you to have a mortgage approval letter so they know which price
range of homes to show you.
Want better buying power? Go a step further and get complete
approval for financing before making an offer on a house. Having
a full approval in advance can help you get the best deal
possible, even if you plan to make a small down payment. Provide
a written confirmation of this approval when the offer is made
and you will be perceived as solid as a cash buyer.
Chesterfield Federal Credit Union offers excellent rates on mortgage loans. You can
apply for your loan online, or contact a Financial Services
Representative at 804-748-1417.
3) Choose a real estate agent
real estate agent is a person who acts as an intermediary between
sellers and buyers of real estate. They have tools to help find the
perfect house for you, have experience with the sales process and
can help guide you through making your offer and signing your
4) Make your offer
Once you find the
house you want to purchase, your real estate agent will prepare an
offer. Offers typically have at least three components: the purchase
price, the closing date, and how long the offer is good for. To
determine an appropriate offering price, you agent will probably look at
"comps” – similar houses that have sold in the neighborhood. Other
considerations are how long the house has been on the market and whether
there are other buyers making competing offers.
In a slow housing
market, it is common to offer less than the asking price. Conversely, in
a hot market, where it is not unusual for there to be multiple offers
on one house, it is common to offer more than the asking price.
offers have additional components, such as seller concessions,
inclusions, and contingencies. Seller concessions are costs that the
seller pays for the buyer, which reduce the amount of money the seller
receives. Typical concessions include closing costs and cash back for
repairs or renovations. Inclusions refer to what stays in the house. If
you want the appliances, blinds, chandeliers, or anything else, make
sure to put it in the offer. Contingencies are conditions that must be
met in order for the sale to go through. A home inspection, financing,
and an appraisal are common contingencies.
offer is written, your agent will present it to the seller. Along with
the offer, it is customary to give the seller earnest money, also called a
good faith deposit. Usually the amount is between 1-3% of the offered
purchase price, but customs vary from place to place. This money is part
of the down payment and shows the seller that you are serious about
purchasing the house. The money should go in an escrow account, not
given directly to the seller.
seller will accept, counter, or reject the offer. If the seller accepts
the offer, the house is taken off the market and you are under
contract. The only way to legally cancel the contract is if a
contingency is not met. Otherwise, if you walk away from the house, you
lose your earnest money deposit.
When sellers counter, usually it is
with a higher purchase price but they can also counter on the closing
date, concessions, inclusions, and contingencies. You can accept their
counter or respond with your own. If you do not get the first
house you put an offer on, try not to get discouraged. There are likely
many houses out there that meet your needs.
5) Close on your new house!
Closing is the day
that the mortgage is finalized and the title of the house is
transferred to you. In many states, closing is handled by the title
company. If not, it may be handled by a closing company or attorney. You
will need to bring photo identification and a cashier’s check for the
amount you are paying for closing costs and the down payment.
be a lot of paperwork to sign but do not feel rushed. You have a right
to review the documents at least 24 hours before closing. Make sure
that you understand them. You may want to hire a real estate lawyer to
accompany you to closing and explain what everything means. The
documents you will be signing include the:
- Mortgage note: The mortgage note is your promise to pay the lender according to the specified terms.
- Mortgage or deed of trust: This gives the lender the right to the title of the home if you do not pay the mortgage.
- HUD-1 Settlement Statement and Truth in Lending Statement: The
HUD-1 Settlement Statement shows your closing costs, and the Truth in
Lending Statement shows the amount you are financing, APR, and other
If you see any unexpected fees or the mortgage
vastly different from what you discussed, don’t just sign the documents –
ask the lender to explain them.
After you get through the mountain of the paperwork, you will
receive the keys to your new home. You are now a homeowner!
6) Home insurance
you close your house, don't forget about saving money on your home
insurance with Chesterfield Federal Credit Union. Our TruStage Home
Insurance program offers great rates on home insurance through trusted
agencies such as Liberty Mutual.
We are here to help you every step of the way!