First-Time Homebuyer 101

Buying your first home is an exciting time, and Diamond wants to make your experience as smooth as possible. Diamond’s local Mortgage Experts will provide one-on-one support through the process of becoming a first-time homebuyer. To get a brief overview, check out the First-Time Homebuyer’s Quick Reference Toolkit.

Long before house-hunting, you should ask yourself this question: When is the right time for me to buy a home? You’ll know if it’s the right time when you:

• Plan to stay in the same house for at least 5 years
• Have money to cover emergency costs
• Have your finances in order

Millennials On The Move

A video series for first-time homebuyers who are looking for expert tips and guidance to buying their first home.

How do I make sure my finances are in order?

Sit down with a Diamond Credit Union expert for a Loan Health Check-Up. Once you understand your credit standing you’ll know if you should concentrate on paying down debt, resolving previous problems, or simply keeping your score in good health.

Save, save, SAVE!

A big part of the homebuying process is the down payment. A good rule of thumb is to have 20% of the value of the home as a down payment. There are several ways to reach that total:

• Home Possible* and HomeOne Mortgage programs available through Freddie Mac
  Diamond now offers the Home Possible and HomeOne Mortgage programs which allow first-time homebuyers the opportunity to apply for a mortgage with as little as 3% down. Talk to our Mortgage Experts to see if this program is right for you.
• First Front Door Program**
  The First Front Door Program is a grant program administered and controlled by the Federal Home Loan Bank (FHLB). Qualifying members can apply to this program with a maximum grant of up to $15,000 per transaction. This program is only available while grant funds last. Please check with a Diamond Mortgage Expert to see if funds are still available for this calendar year.
• Managing Your Savings
  We can set up sub-savings accounts for your various budgeting needs including a house fund and an emergency fund. Then, you can set up automatic transfers to move money at regular intervals directly into savings. You’ll be able to keep track of your savings through Alerts, NetBranch Online Banking, and the Diamond Mobile App.

Once your finances are in order and you have a down payment saved up, then the fun begins!

Steps to buying your first home:

1. Get pre-qualified: Provide Diamond’s Mortgage Originator with paystubs, W-2s, and any other requested information.
2. Start house hunting: Now that you know how much you are pre-qualified for, you can go house hunting with confidence. You’ll likely want to work with a Realtor to start the search. Ask about Diamond’s preferred realtors, if you don’t already have one in mind.
3. Make an offer: This is it! You found the house you really want. Now your realtor will help you put in an offer. Don’t be discouraged if you don’t get the first house you make an offer on. It’s just part of the process, and often the second house you “love” is actually better than the first one.
4. Sign the contract: Once your offer is accepted, you’ll sign a sales agreement and your closing date will typically occur within 60 days of the agreement being received.
   Complete these essential parts of the process: Home appraisal and inspection, providing updated income documentation, shopping for homeowners insurance, and considering getting life insurance.
5. Move into your new home

Buying your first home is a big deal, but don’t worry; we’re in this together! Our Mortgage Experts will start with a review of your current financial situation and then show you how to save for that down payment with special products. Finally, it’ll be time to get pre-qualified so you can start house hunting!