This May is Military Appreciation Month, when our country takes special notice of the members of our Armed Forces who have volunteered to wear the uniform.
Service members are never truly off-duty. They can be called back to their unit at a moment’s notice, subjected to days or weeks-long training events away from their families. Leaders are always responsible for some (or most) aspects of their service members’ well-being, whether on leave, deployed, doing a rotation in a training zone, or working a normal day at their duty station. When it’s time for gunnery, or flight certification, or pre-deployment prep, everything else takes a back seat. Weddings, births, anniversaries, and family holidays often get moved to the back in the name of readiness.
That also means that buying a home is usually pushed to later in life for a lot of our members, who make do with rentals or base-housing as they can never be sure of remaining in the same location for more than a few years.
However, there eventually comes a moment when it’s time to make the leap from home occupier to homeowner. The transition is a big one, financially, mentally, physically, but it’s also often the first major step for a lot of families into building generational wealth.
Before you jump into the wild world of ownership, take a look at these valuable tips from Navy Federal, backed by decades of experience helping our members get into their first home.
Get your credit rating as high as possible
A credit score is a report card for your ability to pay back funds you’ve borrowed. It tells lenders how likely they are to get the money back that they’ve lent you. The higher your score, the better chance they’ll make money from the interest payments on your loan. This reliability is rewarded with a more favorable interest rate, which means less money paid overall through the lifetime of the loan.
If your number isn’t the greatest, no worries. Navy Federal has plenty of resources to get that score back into a competitive range. Like consolidating your debts into a single monthly payment, which will help get your bills under control and rebuild that rating. While a few percentage points one way or another may not seem like much, over the lifetime of a fixed-rate 30-year loan that could mean saving hundreds of thousands in interest payments.
Create an honest (and balanced) budget
There’s nothing worse than finally closing on your dream home, only to realize a few months later that you’re spending more than your income brings in.
The simplest — though not always easiest — way to avoid this is to make an honest budget beforehand. However, as anyone who’s ever tried to plan out their finances knows, the difference between making a budget and sticking to it can be enormous. The daily expenses we never bother to track can quickly pile up. If you’re getting a $6 smoothie after your workouts that’s $120 a month if you’re hitting the gym Monday through Friday. We’re not saying you must give up your daily indulgence, just that you need to realize it’s a recurring expense and track it accordingly. One of the biggest mistakes people make when creating a budget is not being honest about where their money is going. Anything you’re buying or paying off regularly should be tracked and accounted for, no matter how small.
Get preapproved for a mortgage loan
Securing a great rate on a mortgage loan from Navy Federal Credit Union is just part of the process in budgeting for your new home. You’ll need an understanding of the local utility costs, property taxes, HOA fees (if applicable), and other expenses not directly tied to the home itself. Getting preapproved helps you also understand how much you can afford and shows you’re more ready to buy a home.
Once you’re satisfied with your credit score and have a solid handle on your budget, it’s time to find the right loan to fit your needs. Navy Federal has mortgage calculators to help you understand potential monthly payments, closing costs, income qualifiers, down payments, and more!
Find your dream home
The second best part of the homebuying process is shopping for the perfect property. Navy Federal makes the process even easier with their RealtyPlus program.
While most home-buyers have a general idea of what they’re looking for in a home, many are put off by the prospect of scouring the local market themselves. Unfortunately, with the oversaturation of real estate agents, finding someone to work with who is responsive, understands your needs, and is willing to put in the time for all of their clients equally can be just as difficult as finding the actual property. The RealtyPlus program helps you find experienced local real estate agents and shows you nationwide home searches. It’s easy to find an agent who knows the market and can help you navigate the home-buying experience with confidence.
You’ll also be assigned a RealtyPlus coordinator who will assist with agent coordination to ensure you’re involved in every step of the way and providing peace of mind, knowing that everything is being handled in the most efficient and timely way possible.
As an additional incentive, once you’ve closed on your home using a Navy Federal RealtyPlus agent, you can get up to $9,000 cash back1 based on the total value of the property purchased. A win-win scenario for everyone.
Your new home
The final and best part of the homebuying process is the day you finish signing the mountain of documents, are handed the keys, and step through the door for the first time. An entire world of possibilities lies in front of you as a new homeowner, and the only limit is your imagination and how far it will take you.
If you’re ready to start your journey to home ownership, remember these tips, and let Navy Federal Credit Union help you achieve the milestone you’ve been dreaming of.
This article was sponsored by Navy Federal Credit Union. For more than 90 years, their members have enjoyed so many membership perks, including great rates, discounts, cashback and helpful guides that explain a variety of financial topics in simple terms.
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Navy Federal Credit Union is federally insured by NCUA. Navy Federal Financial Group, LLC (NFFG) is a licensed insurance agency. Non-deposit investments, brokerage, and advisory products are only sold through Navy Federal Investment Services LLC (NFIS), a member of FINRA/SIPC and an SEC-registered investment advisory firm. NFIS is a wholly owned subsidiary of NFFG. Insurance products are offered through NFFG and NFIS. These products are not NCUA/NCUSIF or otherwise federally insured, are not guaranteed or obligations of Navy Federal Credit Union (NFCU), are not offered, recommended, sanctioned, or encouraged by the federal government, and may involve investment risk, including possible loss of principal. Deposit products and related services are provided by NFCU. Digital Investor offered through NFIS. Financial Advisors are employees of NFFG, and they are employees and registered representatives of NFIS. NFIS and NFFG are affiliated companies under the common control of NFCU. Call 1-877-221-8108 for further information. Image used for representational purposes only; does not imply government endorsement.
1 The program is only available for individual home purchases/sales in the contiguous US, Alaska, and Hawaii, excluding Iowa and all employer-sponsored relocations. You are not required to receive financing through Navy Federal Credit Union in order to receive the benefits of this program. The cash back is only available with the purchase or sale of your home through the use of a program-referred and -approved real estate agent, and is offered in most states, with the exception of Iowa, Alaska, and Oklahoma, and is not available in certain transactions with restricted agent commissions (including many new constructions, For Sale by Owner, or For Sale by iBuyer transactions). Your assigned agent can help you identify any transactions where the cash back would not be available. The amount of your cash back depends on the value of the property you are buying or selling. Obtaining the full $9,000 cash back requires transacting in a property valued at $3 million or greater. To calculate your potential cash-back amount, please visit the RealtyPlus website: https://navyfederalrealtyplus.com/. The cash-back offer is limited to one cash back per property with no limit on the number of times you may use the program. In some states, a gift card or commission credit at closing may be provided in lieu of the cash back. In Kansas and Tennessee, a Mastercard® MAX gift card will be issued with preloaded points that are ready for spending at specified retail establishments after closing. State regulations in Kansas limit the dollar amounts and the type of incentive. In Mississippi, New Jersey, and Oregon, a commission reduction may be available at closing in lieu of cash back. Please check with the program coordinator for details. All real estate commissions are negotiable. Contact RealtyPlus for terms and conditions. Seller listing fees apply. This program is offered, in part, by Anywhere Leads Inc., which may receive a co-operative brokerage fee as a result of a referral to any affiliated real estate companies, including Better Homes and Gardens® Real Estate, Coldwell Banker®, Century 21®, ERA® Real Estate, and Corcoran. Program terms and conditions are subject to change at any time without notice. Additional terms, conditions, and restrictions apply. This is an advertisement and not a solicitation for agent representation if your property is currently listed with an agent. Anywhere Leads Inc., 175 Park Avenue, Madison, NJ 07940. Licensed broker in the state of Texas. Broker license #9009191.