Buy Your Home—With Confidence

Buy Your Home—With Confidence

YOU'VE MADE THE COMMITMENT TO BUY A HOME... WHAT'S NEXT? THE KEY TO A SMOOTH HOME-BUYING PROCESS IS TO KNOW WHAT YOU CAN AFFORD AND WHAT KINDS OF COSTS YOU'LL SEE ALONG THE WAY.

TARGET HOME PRICE:

TARGET LOAN AMOUNT:*

*Before applying for a home loan, review your credit report and check your credit score. Did you know that BECU members can access their credit score for free? Just log in to your Online Banking on BECU.org.

You’re also legally eligible to receive a free, annual copy of your credit report from each credit bureau—check out annualcreditreport.com. (You’ll have to pay a nominal fee for the report to include your credit score.)

Lenders use your credit score and the information on your credit report to determine whether you qualify for a loan and what interest rate to offer you. Make sure there are no unpleasant surprises or errors on your report.

Learn more about loans you qualify for HERE.

When financing a new home, you’ll have to pay some one-time, up-front costs during the process.

  • Typically 1-5% of your purchase price
  • Paid when you make an offer and contributes to down payment if your offer is accepted; returned if your offer is refused
  • Based on your home price, you’d pay in earnest money.
  • At least 3-5% of your purchase price; 20% to avoid mortgage insurance
  • Presented when you close on your home—your earnest money is included
  • Based on your home price, you’d pay at 5% and at 20%.
  • Typically a $200-$400 flat fee
  • Ordered after your offer is accepted to confirm the physical state of the home; paid at the time of inspection
  • Buyers should pay this.
  • Typically 2.5-3.5% of your loan amount
  • Presented along with down payment at time of closing
  • Based on your loan amount, closing costs would be .
  • Sellers sometimes contribute. Consider this in your negotiations.

When loan documents are signed and you’ve closed on your home, you’ll have monthly payments to include in your budget.

  • Purchase price, minus your down payment
  • This is your target loan amount:
  • Principal is the amount you pay toward ownership of your new dwelling.
  • Interest is what you pay to your lender for borrowing the money to buy the property.
  • Required insurance if you paid less than 20% of the sale price as your down payment
  • Once you reach 20% equity, ask your lender if your loan meets eligibility criteria for the PMI to be removed.

Besides paying for your home itself, you’ll also have other payments to keep in mind.

  • Calculated based on your home’s assessed value
  • This can change over the life of your loan.
  • Protects you from unexpected accidents or disasters involving your home
  • Check with insurance companies to find the lowest rates, or check with your existing insurance agent for combined rates (e.g.: home/auto insurance packages).
  • Required in certain communities or condominiums in order to pay for maintenance and common area fees
  • Make sure you know about any HOA dues before you close.
Buying a home should be an exciting process—and if you’ve prepared your budget, understanding your finances will be a breeze.

TAKE ACTION ON BUYING A HOME TODAY!

YOU DON’T HAVE TO DO IT ALONE.

Talk to a BECU Mortgage representative at (800) 233-2328

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