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Home-Buying Finances with Western Vista Financial Credit Union


May 25, 2016 Facebook Twitter LinkedIn Google+ General



western-vistaIf you want to buy a home, you are likely going to need a home loan to do so. Western Vista Federal Credit Union’s mortgage loan officers in the Cheyenne and Casper branches, Jeff Taylor, Diane Florita and Michael Redman, spent some time discussing home loans, how to get them, what home buyers need to do, and problems they might run into.

According to Jeff, there are many loan options available from conventional to government-backed mortgages and Western Vista can help you decide the best one for you.

“I approach my work more as a coach/trainer or consultant,” says Jeff. “I really enjoy when my client can make a great choice on their loan based on the conversations we’ve had. The best moments are learning about my clients, their hopes/aspirations and being able to give good solid advice. I truly enjoy, while being at a closing, having the listing agent tell me what a great experience they had in the whole process.”

What is Needed For a Home Loan?

Let’s look for a moment at two typical loans: the conventional loan and FHA loan. A conventional loan is a loan that is not guaranteed by the government. An FHA loan is insured by the Federal Housing Administration. Both loans have different requirements, some of these include:

Front-End Debt-to-Income Ratio: This is your housing costs divided by your gross monthly income. For a conventional loan a ratio or 30% or less is a good guideline. For an FHA, the ratio is 31%.

Back-End Debt-to-Income Ratio: This is your monthly debt payments divided by your gross monthly income. Generally, not exceeding 43% is standard.

Credit Score: A minimum FICO score of 620 is needed to get a conventional loan. However, having a better credit score will improve your interest rates. To get an FHA loan with just a 3.5% down payment, you will have to have a credit score of 580 or higher. A score of 500 to 579 means you will have to have a 10% down payment

Down Payment: For a conventional loan a 20% down payment removes the need for mortgage insurance. You can put down less, as little as 3%, if you are willing to pay private mortgage insurance. An FHA loan can have a down payment as low as 3.5%.

So, how do you know which loan is right for you? Luckily, Jeff, Diane and Michael have you covered. They understand that buying a home can be stressful and that understanding loans can be difficult. Jeff stated, “We offer great advocacy counseling for our borrowers that are buying or refinancing a home. We want to provide a great experience that, while stressful at times, is something you would want to tell your friends about.”

Finances After A Mortgage Loan

Not only does Western Vista Financial Credit Union help you during the buying process, but they can help you afterwards as well. Sticking to a budget after purchasing a home is fundamental. Here are a few tips from the experts that might help you reduce your “after home purchase” expenses.

Don’t use a landline for the phone. This could save you up to $300 a year.
Reduce the data on your smartphone. This could save up to $240 a year.
Unplug electrical devices that you are not using. The Department of Energy suggests that up to 10% of your electricity bill is due to plugged in devices. This could save up to $300 a year.
Lower your water heater temperature to 125. This will save $30 a year.
Bundle your home and car insurance. This can save up to 22% for an average savings of $250 a year.

Just these five tips will save enough money to pay one month’s mortgage bill!

Western Vista Federal Credit Union does way more than process mortgage loans. They are a full-service credit union providing debt counseling, debt restructuring, commercial loans, and investment services. They have a “holistic” approach to a person’s needs no matter their stage of life.