Mortgage Loans

The first step to getting ready to buy a house is to get your finances together. Start by getting a handle on what kind of house you want and how much you can afford. Once you have these two things figured out, then do the following: 

• Start tracking your spending. Be prepared to get a handle on your expenses. If you’ve got big plans for saving for a down payment, you’ll need to start tracking your spending right away. Start by keeping a spending journal. Write down every little thing you spend every week. Be sure to write down the date and amount as well as the location. 
• You may find this easier by using our free Trends™ program inside your Coosa Pines FCU Online Banking. Trends™ can help you gain greater insight into your day-to-day expenses, track spending, stay on budget, and manage your savings and investments here and elsewhere. 
• Once you’ve looked at your current finances, think about where you would like to be in the future. Buying a home is a great goal to have. At the same time, thoughtfully consider your longer-term financial goals, like retirement. 
• Evaluate your current spending to determine what changes you can make to start working towards these goals. 

• As you prepare to buy a home, it’s important to stay on top of your finances. For many, understanding personal finances can be a mystery. There are answers available to your questions when you know where to look. 
• A trusted financial counselor from Coosa Pines or GreenPath™ can help you better understand some of the most common questions about credit reports and scores, and what you can do to be  ready to buy a  home  or any other large purchase. 

• Your credit history is important as you work on buying a house. If you’ve had challenges in the past and need to rebuild your credit, you’re not alone. The Consumer Financial Protection Bureau says nearly 1 in 4 adults in the U.S. have what is considered a poor credit score. This means a score of 580 or below. 
• The good news is that you can improve that score with some work and planning. With a higher credit score, you have a better chance of being approved for things like mortgages, car loans, and credit cards. 
• Log in to your Coosa Pines app or Online Banking and take advantage of your free credit report and score courtesy of CPFCU. With Coosa Pines, you can access this at any time. If you aren't a member of Coosa Pines, visit www.annualcreditreport.com to claim a free credit report. It will not include a score unless you pay a fee, but you will be given a full report of your history and credit status. 
• Talk to your Coosa Pines FCU loan officer  about credit builder loans and secured Visa credit cards to build a positive history, but don't forget to take care of the negative items in your report as well. GreenPath™ Financial Wellness has  Certified Financial Counselors  ready to help you understand and improve your credit, courtesy of Coosa Pines and at no cost to you. 

• Staying on top of all your bills may be easier said than done - especially if you face an unexpected financial crisis or work interruption. How you pay your bills can affect your credit score. Negative information —like missed or late payments —could affect your credit score for years and have an impact on getting into that new home. 
• It may sound simple but  setting up a budget  can help you get and stay on track. GreenPath™ offers a  free budgeting worksheet, tips on budgeting even during inflation, and  money management education. 
• If you are having trouble managing your bills, think about contacting your lenders. They may be able to help you with a payment plan. Consider this, however, a consolidation loan may hurt your score temporarily and leave you unable to make new loans until it is paid in full. For more information, speak with your credit counselor or CPFCU loan officer. 

• When you’re preparing to buy a house, it’s important to have a good idea of how much you can afford each month. Use our House Affordability calculator.
• Keep in mind that you need to have a comfortable amount of money in your budget so that you have money available to do the things you enjoy. 

• Once you have put your plan in place, considered where you are financially, and found your dream home, it’s time to consider how you are going to pay for it. Remember, most people can’t afford a house without a good loan. Reach out to your Coosa Pines FCU mortgage loan officer or start your application online. We're here to help you every step of the way. 
• You can get a preapproval letter in advance to know how much you can afford to borrow, and when you need to put an offer in. Just remember that because a lender says you are preapproved up to a certain amount does not guarantee it is affordable for you with all your other financial obligations and goals – which is why having a clear understanding of your budget is important. 
• All of this may sound overwhelming, but help is available. As you begin your journey, reach out to GreenPath™ for counseling or your  CPFCU mortgage loan officer  for guidance, tips on managing credit and your budget, and free educational tools to make the home-buying process much easier. 

GreenPath™ has resources on the following topics, offered by Coosa Pines FCU as a free service to members. 

• The Realtor’s Role: Buyer and Seller 
• Down Payment: How much do you need? 
• Types of Mortgages: Understanding loan options 
• Mortgage Lenders: How to Choose 
• Home Appraisals 
• Pre-qualifying for financing 
• Home Inspection: What Should It Cover? 
• Escrow Accounts: The What and Why 
• Insurance and other costs of ownership 

The right time to buy a home is when you’ll be able to afford it and feel secure enough in your financial circumstances to be able to meet this new obligation. GreenPath™ counseling and education can help you navigate the process and make better, informed decisions, as can your Coosa Pines mortgage loan officer.