Mortgages can seem scary and so… adult. You don’t know the first thing about borrowing, or lending, or home-buying. And the real estate market in Baton Rouge can be really intimidating. Sometimes you wish buying your perfect home was as easy as buying your perfect pair of jeans. (Though sometimes that seems impossible as well.) But don’t fret! Break down the home-buying and mortgage-lending process into smaller steps. That’ll make it seem more manageable.
Mortgages: The Basics
It helps to know the basics of how a mortgage works. First, you need to get approved. They’ll look at your income and credit to determine what kind of mortgage loan you qualify for. It also helps to have an idea of how much money you have available to use as a down payment on your new home. Feel free to meet with many different lenders to find the best fit. Your local credit unions can offer competitive rates and exceptional customer services. A mortgage lasts for thirty years or so—you want to make sure you like the people you’re working with!
Mortgage Next Steps
Once that’s all determined, you can make an offer on your dream house. After you have an accepted offer—and the house passes inspection—a closing date is determined. That date is the official day the house becomes yours! You’ll meet at a title attorney’s office with your lender, realtor, and the sellers of the house. Make sure you know ahead of time all the fees you’ll be paying in addition to the down payment. You want a clear picture of what’s going on. You’ll be signing a lot of documents—don’t be afraid to ask questions!
Onward Into Your Future
Once the house is yours, you make your monthly mortgage payment to your lender. Many factors influence the amount of your monthly mortgage payment. Your interest rate, down payment, and the length of time of your mortgage all pay a role. If you used to lease, think of this as your rent, except you’re not paying a landlord. You’ paying yourself! Though it is debt, a mortgage is considered “good debt.” It’s an investment in your future.
Credit Unions: Your Mortgage Lending Partners
While you start your mortgage process, call Essential Federal Credit Union at 225.353.8238. We can answer all your questions about mortgages and banking. In fact, we were founded by locals just like you! Find us at one of our seven locations throughout the Greater Baton Rouge area.