Know what you can afford.
Buying a home is a big financial decision. And whether it’s a condo, townhouse or single family residence — new construction or a home with a history — this transaction will have a significant impact on your budget.
Understand Mortgage Prices and Fees
Many consumers accept the first loan offered and don't realize that they may be able to get a better loan. On any given day, lenders and brokers may offer different interest rates and fees to different consumers for the same loan, even when those consumers have the same loan qualifications. Keep in mind that lenders and brokers also consider the profit they receive if you agree to the terms of a loan with higher fees, higher points or a higher interest rate. Shopping around is your best way to avoid more expensive loans.
Understanding the Basics of Obtaining a Home Mortgage Loan (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
This video guides potential homebuyers through the steps of shopping for the right mortgage loan and what to expect during the home buying process.
Buying a House: Tools and Resources for Homebuyers (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
The Consumer Financial Protection Bureau’s Owning a Home online toolkit will help answer questions about buying a home, including how to prepare to shop, explore loan choices, compare loan offers and get ready to close.
Shopping for a mortgage takes time and energy, but not shopping around can cost you thousands of dollars. To find the best loan, you have to shop around.
Why Reading Disclosures Is Important
Do you read the fine print? A disclosure details all material facts relevant to a transaction. Federal or state laws require financial institutions to provide disclosures containing information on terms to their customers. It can sometimes be difficult to decipher the information you are given. However, disclosure statements contain the critical information you need to make an informed decision about which financial institution, and its products and services are right for you.