Article adapted from 12 First-Time Home Buyer Mistakes and How to Avoid Them 3.19.19 Holden Lewis, Nerd Wallet.

MISTAKE #1: NOT FIGURING OUT HOW MUCH HOUSE YOU CAN AFFORDHow to avoid this mistake: Use WCCU’s mortgage purchase calculator to help you know what price range is affordable, what’s a stretch and what’s aggressive.

MISTAKE #2: NOT CHECKING CREDIT REPORTS AND CORRECTING ERRORSHow to avoid this mistake: Request a free credit report each year from each of the three main credit bureaus. You may dispute any errors you find. See our February Community News for more tips!

MISTAKE #3: NOT LOOKING FOR FIRST-TIME HOMEBUYER PROGRAMSHow to avoid this mistake: Ask WCCU about our first-time homebuyer options and look for programs in your state. You might qualify for a pro-gram that doesn’t require a down payment.

MISTAKE #4: IGNORING VA, USDA AND FHA LOAN PROGRAMSHow to avoid this mistake: Learn about the following loan programs: - VA loans are mortgages guaranteed by the U.S. Department of Vet-erans Affairs. They’re for people who have served in the military and allow qualified homebuyers to put zero percent down and get 100% financing. Borrowers pay a funding fee in lieu of mortgage insurance.

- USDA loans can be used to buy homes in areas that are designated rural by the U.S. Department of Agriculture. Qualified borrowers can put zero percent down and get 100% financing. You pay a guarantee fee and an annual fee in lieu of mortgage insurance.

- FHA loans allow for down payments as small as 3.5%. Also, the Federal Housing Administration can be forgiving of imperfect credit. When you get an FHA loan, you pay mortgage insurance for the life of the mortgage, even after you have more than 20% equity.

Every year, first-time homebuyers venture into the market and make the same mistakes that their parents, siblings and friends

made when they bought their first houses. Here are 8 common mistakes and how to avoid them:

MISTAKE #5: EMPTYING YOUR SAVINGSHow to avoid this mistake: Save enough money to make a down payment, pay for closing costs and moving expenses, and take care of repairs that may come up. Lenders will give you estimates of closing costs, and you can call around to get estimates of mov-ing expenses.

MISTAKE #6: APPLYING FOR CREDIT BEFORE THE SALE IS FINALHow to avoid this mistake: Wait until after your mort-gage closing to open new credit accounts or to charge furniture, appli-ances or tools to your credit cards. It’s OK to have all those things picked out ahead of time; just don’t buy them on credit until after you have the keys in hand.

MISTAKE #7: SHOPPING FOR A HOUSE BEFORE A MORTGAGEHow to avoid this mistake: Talk to WCCU about getting pre-qualified/pre-approved for a home loan before you start to seriously shop for a place. The process involves a review of your income and expenses, and it can show sellers that you can back up your offer.

MISTAKE #8: UNDERESTIMATING THE COSTS OF HOMEOWNERSHIP How to avoid this mistake: Work with a real estate agent who can tell you how much the neighborhood’s property taxes and insurance typically cost, and be aware that repair and renovation costs should be factored in when making your decision on which home is the right fit. Questions? We can help! Contact WCCU’s Mortgage Professionals Today!

Will it be your first home or has it been a while? Attend our Homebuyers Seminar! (Turn over for more details.)

Call our WCCU Mortgage Professionals Today to Get Started!

Jeff VanderVorste 401.622.2238NMLS ID # 16862

Jeanne Abate 401.374.1232NMLS ID # 529809

Buying a home? WCCU can help!

8 First-time Homebuying Mistakes

& How To Avoid ThemNewsCommunityMarch 2020 Issue

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Westerly ~ Richmond ~ Wakefieldwww.westerlyccu.com

401•596•7000

Insured by NCUA. WCCU NMLS ID#: 518892

3/30: WCCU Annual Meeting

• $1,000 WCCU Robert M. Bewlay, • $1,000 WCCU Joseph N. Cugini, • $1,000 WCCU College Scholarship • $500 WCCU Vocational (2 Available)• $1,500 Cooperative Credit Union Assoc.

What’s New at WCCU!#TeamWCCU Getting Involved!

WCCU Scholarship Program

WCCU’s Scholarship program awards up to $5,500 in college scholarships to youth in area schools including

Chariho, Exeter-West Greenwich, Narragansett, North Stoning-ton, Prout, South Kingstown, Stonington and Westerly for the

2019/2020 school year. Membership is required to apply. See our website for more details.

Scholarship Deadline is March 13, 2020

Dates to Remember:

*No Purchase Necessary. Void where prohibited. Open only to legal residents of the 50 U.S. or DC, and legal age of majority before 3/1/20. PIN-based debit, international & corporate transactions ineligible. Non-gas, grocery and home improvement transactions also qualify. Ends 5/31/20. Visit us online or see teller for Official Rules and complete details. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated.

Your WCCU Debit Mastercard® could help you get away.From statement credits to an incredible trip, your Mastercard is your key to can’t miss prizes!

The more purchases you make with your WCCU Debit Mastercard from 3/1/20 to 5/31/20, the bigger your prize could be. Start using your card today for a chance to win a statement credit or even a 4-night trip to Chicago, Los Angeles, Miami, New York City or Honolulu.*

Jamal Paire, WCCU’s Financial Services Manager for our Granite Street branch, hosts the Westerly Transition Academy for a

presentation on Savings and Checking.

#TeamWCCU wore red and donated $$ to support the American Heart Association#WearRedandGive Day!

WCCU NMLS ID # 518892.

Seating is limited. RSVP by 3.18.20 to Kate Craig, at kcraig@westerlyccu.com or 401.596.7000 x2142.

Tip topics include: • Steps to buying a home • How to get pre-qualified

• The application process • WCCU Mortgage Programs

Enjoy free apps & drink tickets for attending!

3.25.2020 • 6 – 7 pm Whalers Brewing Co.

1174 Kingstown Rd. • Wakefield, RI 02879

Free Homebuyer Tips & Sips