TENCU Chronicles

Buying your first home is a massive milestone with excitement and a hefty price tag. Whether you've been saving for years or just started your journey, planning smartly and understanding the financial steps of homeownership is essential. Here are some indispensable money tips to help you get your dream home and stay financially secure.

Six Easy Steps

1. Know What You Can (Really) Afford

Before browsing listings, crunch the numbers. A good rule of thumb is to keep your housing costs—mortgage, insurance, and taxes—below 30% of your monthly income. Use online mortgage calculators to estimate payments and factor in utilities, maintenance, and homeowner association (HOA) fees.

? Pro tip: Get pre-approved for a mortgage before you start shopping. It gives you a realistic budget and makes your offers more competitive.

2. Save More Than Just the Down Payment

While a 20% down payment is often recommended, don't forget about hidden costs. You'll need to budget for closing costs (typically 2–5% of the purchase price), inspection fees, and potential moving expenses.

If 20% down feels out of reach, explore first-time homebuyer programs or credit union mortgage options that offer lower down payments or grants.

3. Boost Your Credit Score

Your credit score plays a significant role in determining your mortgage rate. A higher score can save you thousands over the life of your loan.

Start by:

• • • Paying bills on time
    • Reducing credit card balances
    • Avoiding new debt or big purchases before applying for a mortgage
      
      

Even a slight increase in your score could mean a better rate—and a lower monthly payment.

4. Don't Drain Your Savings

It's tempting to throw every dollar you have at your down payment, but keeping an emergency fund in place is smart. Unexpected repairs, higher utility costs, or life changes can happen anytime. Aim to keep at least three months of expenses in savings after closing.

5. Factor in Future Expenses

Your home might need new furniture, landscaping, or minor renovations. Create a "home fund" to cover upgrades or repairs without relying on credit cards. Think ahead so your dream home doesn't turn into a financial stressor.

6. Get Pre-Qualified With Your Local Credit Union

Credit unions often offer better rates, personalized service, and flexible lending options—especially for first-time buyers. They can help you understand your borrowing power and walk you through the process with less stress and more transparency.

Ready to take the plunge? Find out more about TENCU Mortgages!

Buying your first home is one of life's most significant financial decisions—but it doesn't have to be intimidating. With proper budgeting, a solid plan, and trusted financial partners, you can make homeownership achievable and enjoyable.