First-Time Homebuyers
You're starting a memorable journey to a new life in your first home. Step by step, you'll find out what to expect so you can enjoy this experience.
Advice to go by when you're ready to buy
Here's what to know as you prepare to buy your first home. Even if you’re still a couple years out, it is beneficial to do some research now and get your credit and plans for a down payment in order. We can help!
Know when you're ready
- Take a complete view of your finances when considering buying a home.
- Knowing how large a mortgage you can afford is more important than knowing how much you're able to borrow.
- Look beyond your monthly mortgage payment and consider additional costs such as insurance, taxes, any HOA dues, utilities, trash collection, etc.
- Adding in all potential costs helps you create a more realistic budget.
Save for homeownership
- Choose from various Dominion Energy Credit Union accounts that help you build up and continue growing your savings.
- Make sure you're saving enough that you don't use all your savings when buying a home.
- When setting aside money, remember moving costs, home furnishings and other similar expenses.
- Your down payment could be as low as 3%, depending on your mortgage.
- Closing costs average 3%-6% of your loan amount.
- Depending on your type of mortgage, less than 20% down payment means private mortgage insurance (PMI) will be added to your monthly payment.
- Factor in the cost of a home inspection (approx. $300-$500) so you are aware of any issues with the house before buying it.
- Save for an appraisal (approx. $400-$700) that we'll order to verify the home's market value and condition.
- Set aside enough money to make a deposit once your offer has been accepted. This is known as an earnest money deposit and is typically 1% of the purchase price.
- Your monthly housing cost should be less than 28% of your gross monthly income to be considered affordable.
- Keep your overall debts as low as possible when applying for a mortgage. Your debt-to-income ratio should be less than 36% for a conventional loan.
Work with a mortgage lender
- We can provide insight on your various mortgage options and help you find the right one.
- Gather important documents and information related to your employment history and assets, including account numbers, account types and balances.
- Provide us with general information about the type of property you want, purchase price and loan amount as we review your application.
- Fill out our simple online application in about 20 minutes to get a pre-qualification letter valid for 90 days.
- This letter shows sellers you're a qualified and serious bidder able to fund the purchase.
Shop with a real estate agent
- A trusted agent smooths the homebuying process for you and relieves a lot of stress to make this experience more enjoyable.
- Talk to your agent about what you need and want in a home and a neighborhood, along with your homebuying budget.
- Make sure you discuss fees with your agent. Sellers typically pay these fees out of proceeds from the home sale, but communicate with your agent to avoid surprises.
Make an offer on a house
- You have found the right home and it's time to work with your real estate agent to make an offer.
- Your offer and pre-qualification letter (step 3) will be submitted to the sellers or their agent. It's natural for negotiations on prices and terms of the sale to occur.
- Once your offer is accepted, we receive your contract for review, let you know how much money you'll need to bring to the closing, and provide a snapshot of your monthly costs.
- You'll need to provide us documents such as recent paystubs, two years of W2s, recent bank statements, a quote for home insurance and documentation of large deposits in your account.
- Select a title or settlement agent to complete your property's title search. Make sure you shop around to get the best price for this service. We can help you locate various title search companies to contact.
- At this point, we'll order a property appraisal to verify its value is equal to or greater than the purchase price and to confirm there are no required repairs.
Close on your loan
- With documents collected and the appraisal and title search complete, you're ready for closing day.
- Make sure your homeowners insurance policy is in place and schedule a closing with your attorney or settlement agent.
- You'll be expected to submit your down payment and closing costs at this time.
- After closing, it's time to move in. Congratulations!
| Product | Rate | APR** | Points | P&I |
|---|---|---|---|---|
| 30 Year- Rate Buster | 6.125% | 6.240% | 0.1250 | $1,481.05 |
| 20 Year- Rate Buster | 5.875% | 6.024% | 0.1250 | $1,728.77 |
| 15 Year- Rate Buster | 6.125% | 6.312% | 0.1250 | $2,073.40 |
| 10 Year- Rate Buster | 5.625% | 5.844% | 0.0000 | $2,660.45 |
| 5:5 ARM | 6.250% | 6.348% | 0.0000 | $1,500.81 |
| FHA 30 Year | 7.250% | 7.572% | 0.2500 | $1,662.80 |
| VA 30 Year | 7.250% | 7.416% | 0.5000 | $1,662.80 |
Make Your Dreams a Reality
For a custom quote or consultation on your home financing options, contact one of our specialists using the form below.
Financial education and resources to support your success
Frequently Asked Questions
You can apply for loans and credit cards at the same time you join! There is no waiting period before you can take advantage of all our member benefits. The moment you become a member, you can start applying for auto loans, mortgages, and every other service we have to offer.
To apply for a mortgage, fill out our mortgage application. We currently offer first mortgages on primary and second homes in Virginia, North Carolina, South Carolina, and Ohio. Our online mortgage portal makes it super easy to apply and gives you control so you can check the status every step of the way.
Please note: We recommend using your personal email address when you apply to ensure emails are received okay.
At this time, we do not offer land only or home construction loans.
To speak to someone in our Mortgage Department please call 866-300-8240 or email [email protected]
Typically closing takes 4-6 weeks from receipt of contract. However, the closing date can be a moving target due to a number of variables.
A pre-qualification is good for 90 days.
An escrow account is set up when you close your mortgage loan. It holds funds from your monthly mortgage payment to cover future payments for related costs including items such as property taxes and homeowner’s insurance.
The specific amount of your closing costs will vary.
The fees may change depending on your specific situation because appraisal fees, title charges, closing fees may all vary from state to state and also from lender to lender.
To assist you in evaluating our fees, we've grouped them as follows: third-party fees, taxes and other unavoidable costs, and lender fees:
- Fees that we consider third party fees include the appraisal fee, the credit report fee, the settlement or closing fee, the survey fee, tax service fees, title insurance fees, flood certification fees, and courier/mailing fees. Third party fees are fees that we'll collect and pass on to the person who actually performed the service. For example, an appraiser is paid the appraisal fee, a credit bureau is paid the credit report fee, and a title company or an attorney is paid the title insurance fees.
- Fees that we consider to be taxes and other unavoidable costs include: State/Local Taxes and recording fees. These fees will most likely have to be paid regardless of the lender you choose. If some lenders don't quote you fees that include taxes and other unavoidable fees, don't assume that you won't have to pay it. It probably means that the lender who doesn't tell you about the fee hasn't done the research necessary to provide accurate closing costs.
- Lender fees such as points, document preparation fees, and loan processing fees are retained by the lender and are used to provide you with the lowest rates possible. This is the category of fees that you should compare very closely from lender to lender before making a decision.
The first number refers to your initial term, or how many years your initial rate is fixed. The second reflects how often your rate adjusts after the initial term. For example for a a 5/5 ARM, you’d have a fixed rate for the first five years. Then, your rate and payment could change once every 5 years after.
Dominion Energy Credit Union, headquartered in Richmond, Virginia, is a full-service financial institution that serves Dominion Energy employees and offers convenient digital banking services and Bill Payer so members can manage their money from anywhere.