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PENFED MORTGAGES
FIRST TIME HOMEBUYER
Find the information, resources, and answers you're looking for
before buying your first home.
before buying your first home.
STAGE 1
Thinking About Buying A Home
STAGE 2
Looking for a Home
STAGE 3
Getting a Mortgage
STAGE 4
Closing & Moving In
1. THINKING ABOUT BUYING A HOME?
The first stage of buying a new home is considering your options and making
the decision
to take the next step.
Here are some resources to help you get started.
Transitioning From Renting to Home Ownership
Buying Your First Home
Buying a home takes time, but the transition from renter to owner doesn’t have to be
intimidating, especially when you know what to expect up front.
[Are Your Ready? These Videos Can Help]
This
article will help you understand the process and what to expect along the way.
Should I Rent or Buy?
Compare Costs Between Renting and Buying
Do you know how the costs of a new home might compare to what you're paying now? After all, buying a home is one of the most important financial decisions that you will make.
The New York Times created an online calculator that helps you compare the costs of renting to the cost of ownership, depending on your individual situation. It's one of the best we've found to help you determine what option is right for you.
Making Homeownership More Affordable
HomeReady® Is Here to Help
HomeReady is a program offering solutions to future homeowners needing help with mortgage approval, whether due to income or down payment requirements. HomeReady also offers assistance for homes purchased in select redevelopment regions within the United States.
Interested in your options? Our Mortgage Center is here to help.
Understanding Mortgage Costs
6 Considerations You Need To Know
The cost of buying your own home includes more than just the sales price. From points to loan terms and closing costs, many factors affect the total cost you end up paying.
[Learn more about mortgage costs (video)]
These six factors should be taken into consideration before signing on the dotted line.
Related Articles
Interested In Learning More?
Here are a few additional articles to help you make your home buying experience even better.
[Mortgage Programs for Veterans and Military Personnel]
Buying Your First Home
Buying a home takes time, but the transition from renter to owner doesn’t have to be
intimidating, especially when you know what to expect up front.
[Are Your Ready? These Videos Can Help]
This
article will help you understand the process and what to expect along the way.
2. Looking For A Home?
Are you trying to find that "just right" home but don't know where to start? Or maybe you've seen hundreds of properties online but you aren't sure which ones are right for you?
PenFed Realty can help. As a trusted partner of PenFed Credit Union, PenFed Realty is available to give you the personalized service you deserve.
How Much Can I Afford?
Simplify your home search by knowing your price range to look for.
Our Affordability Calculator can help you estimate the price based on income, monthly debts, down payment, and the length of the loan term.
Follow these steps to see your results:
Step 1: Enter your annual income.
(If more than one person will own the home, include his or her income as well.)
Step 2: Input your monthly debts - and the debts of any co-owners.
Step 3: Input a down payment amount.
Step 4: Select a loan term. (Many people start with a 30-year term.)
Step 5: Calculate and view your results!
Mortgage Affordability Calculator
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3. GETTING A MORTGAGE
Once you have an idea of how much you can afford and what you're looking for in a new home, it's time to get a mortgage.
We'll walk you through the process and let you know what you need and what to expect when prequalifying or applying for a mortgage loan.
Applying For A Mortgage
Mortgage applications can be confusing and often require documents that aren't easily available. Find out what you'll need here.
Mortgage Terms
Navigating a mortgage application or reviewing a new home listing can be confusing, especially when everyone seems to be speaking a different language.
Mortgage Types
What mortgage type is best for you? It depends! Take a look at your options, compare rates and features, and find the mortgage right for you.
Tools & Resources
Find more tools and resources here:
GREAT MORTGAGES FOR FIRST TIME HOMEBUYERS
Below are common types of mortgages to choose from.
Want to explore specific product options and current rates? Explore your options here.
| Mortgage Types | Benefits | Great For: |
|---|---|---|
| First Time Home Buyer Advantage | 3% Down Payment No income limits |
Buyers wanting a low down payment of 3% | Conventional Fixed Rate Options | Multiple term options available Stable payments over the life of the loan |
Buyers wanting a down payment of 5% or more |
| Low Down Payment Options | HomeReady and First
Time Home Buyer options available Down payment & closing costs OK from multiple sources (including gifts and grants) A wide range of income sources accepted for qualification Online Homebuyer Education for First Time Homebuyers required for select programs |
Buyers wanting a down payment as low as 3% | VA Loan Options1 | Fixed and adjustable options available For qualified military, veterans, and family members |
VA qualified buyers wanting a down payment as low as 0% |
| Adjustable Rate Options | Multiple term options available Low initial rates |
Buyers planning to move within the next 5 to 7 years |
How Much Will My Mortgage Cost?
Many factors can determine the monthly payment amount of your mortgage, including the price of the home, amount and type of the loan, and the loan interest rate.
Use our Monthly Mortgage Payment Calculator below to help you estimate your potential monthly payment.
Mortgage Payment Calculator
Down payments less than 20% of property value may require Private Mortgage Insurance (PMI).
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4. Closing and Moving In
Once you've closed on your home, its time to move in.
Check out these moving tips now.
FREQUENTLY ASKED QUESTIONS
No. There are many options for homeowners who do not want to put down 20%, including VA loans, HomeReady® options, and many others. Contact PenFed mortgage to see what options are right for you.
Closing costs are fees and expenses you pay when closing your mortgage loan. All loans have them.
According Freddie Mac, average closing costs can vary between 2 to 5% of the total purchase price and include items such as title fees, appraisal fees, inspection fees, and other fees. The good news? You may be able to negotiate with the seller and have them cover a portion of the costs.
An escrow account usually refers to an account created by a neutral party to hold funds before closing or as part of your monthly mortgage payments. Before closing, escrow accounts may be used for items such as earnest money, home inspections, and other pre-closing expenses.
After closing, escrow accounts can be included in mortgage payments and used to pay for homeowners insurance, property tax, and more.
When a sale falls through, you may or may not get your good faith deposit back.
Before entering into a contract to buy a home, be sure to verify in what situations your money will be returned to you.
