Grow Financial Federal Credit Union

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Buying
A Home

Home Sweet Mortgage


Buying a home is a huge life event. Whether you’re buying your first home or your dream home (or maybe you lucked out and found both!), you’ll probably need a mortgage. That’s where we come in. We offer a variety of home loans to fit your needs at competitive rates. Fixed-rate and adjustable-rate options. FHA, VA and USDA Loans. Jumbo loans, professional loans and mortgages with down payment assistance. We’ve got you covered no matter what you need.

The Homebuying Process, Simplified

The homebuying process might seem complicated, especially if you’re a first-time homebuyer, but we’re here to make it simple. Wondering what the process involves? Here are the six primary steps to buying a home:

1

Build your credit score and save for the down payment.

1

Get preapproved for a mortgage.

1

Find a real estate agent and go house hunting.

1

Make an offer.

1

Have the home appraised and inspected.

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Close on your new home!

Choosing A Mortgage

Our professional Real Estate Loan Officers can help you along the way, explaining all the complicated parts and working with you to find the ideal mortgage type for your situation. Because we don’t just want to help you get a mortgage. We want to help you find your way home.

Your One-Minute Guide To Buying a Home

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As homebuying has become more competitive in a fast-moving market, potential buyers will want to show that they’re qualified for financing before beginning to visit homes. By getting preapproved, you and your real estate agent will know exactly how much house you can afford and be ready to move quickly when you choose to make an offer.

The exact amount you’ll need to buy a home depends on a few factors, primarily the price you can afford and the type of mortgage you choose. You’ll typically need cash on hand for closing costs, which range from 3-6% of the purchase price. Plus, you’ll need funds to cover the down payment. How much do you need for a down payment? In general, having 20% of the purchase price as your down payment will allow you to avoid paying for private mortgage insurance (PMI), but that doesn’t mean everyone must have 20% saved up before buying a home. There are a variety of mortgage options with down payments of 10%, 5% or even lower depending on what you qualify for. At Grow, we also offer a 100% Financing Home Loan.

Of the many mortgage options, they all generally fall into two categories: fixed-rate or adjustable-rate. Fixed-rate mortgages are the traditional option for most home loans. The interest rate doesn’t change throughout the life of the loan, so your payment won’t change (aside from fluctuations in taxes or insurance), and you can choose the length of your loan term. Adjustable-rate mortgages, also known as ARMs, on the other hand offer a lower starting interest rate and a lower monthly payment for a fixed time frame of the loan, then the rate and payment may increase over time.

That depends on what you want to prioritize. To help you choose between fixed-rate or adjustable-rate, consider the potential benefits of each option.

Benefits of a fixed-rate mortgage:

  • Level principal and interest payments for the full term of the loan
  • No risk that changing market conditions will increase your monthly payments

This may be the best choice if you prefer stable monthly payments and plan on staying in the home longer than a few years.

Benefits of an adjustable-rate mortgage:

  • Lower monthly payments and lower interest rate, for the first part of the loan
  • Can allow for a higher loan amount and enhanced buying power

This may be the best choice if you want to keep the payment as low as possible for the first few years of the loan, you plan to sell the home within the next few years, or you expect your income to increase significantly over the next few years.

When it comes to real estate, escrow is the legal arrangement where a neutral third party temporarily holds onto all the paperwork and funds until all parties involved in the transaction fulfill their obligations under the contract. You’re said to be “in escrow” and “under contract” during the period of time between having your offer accepted and closing on the home.

This is a common question, and it’s smart that you’re asking it. Before looking at listings, it’s important to know how much home you can afford. This will mainly depend on your income compared to your debts, known as your debt-to-income ratio (DTI). Lenders find your DTI by taking the sum of all your monthly payments and dividing that by your gross monthly income. Let’s say you make $2,000 of payments every month on a combination of miscellaneous debts, and you bring in a gross income of $6,000. In this scenario, your DTI would be 33%. Generally, a DTI of 50% or lower is needed for most mortgages. If you’re unsure how much home you can afford, talk to us. We’ll help you look at your whole financial picture to figure out which mortgage option is right for you.

As a Grow member, you’re automatically qualified for cash back after closing on the purchase or sale of your home.* You can potentially earn $400 to $5,050 with a Grow home rebate!

*This program is offered and administered by CENTURY 21 Beggins Enterprises. For additional information and/or terms and conditions, please contact CENTURY 21 Beggins Enterprises at 1.855.221.GROW. Example rebate amounts are based on contract price of the home.

Important Information About Procedures for Opening a New Account

To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: when you open an account we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

Subject to credit approval.
Grow Financial mortgage loans are valid for the purchase or refinance of owner-occupied residential properties in the states of Florida, South Carolina, North Carolina, Georgia, Alabama and Tennessee including single-family detached, condominiums and townhomes. Not valid for the purchase of investment properties. Grow Financial mortgage loan rates are updated daily and available at growfinancial.org.