Are You Ready to Buy a Home?

With mortgage interest rates at or near historic lows, now may be the perfect time to buy a home.

How will you know when you are financially prepared to purchase a home of your own? If you answer “yes” to each of the following questions, you’ll be ready to begin the mortgage application process and be well on your way to owning your own home:

1. Do you have cash savings of 5 to 10 percent of the price of the home you want to buy, to cover the down payment and closing costs?

2. Are you currently employed full time?

3. Is the monthly mortgage payment of the home you’d like to buy within range of what you can afford with your monthly income (before taxes)? Note: Most lenders limit the amount of your monthly mortgage payment (including property taxes and insurance) to no more than 28% of your monthly income before taxes.

4. Is your monthly credit debt, including your expected monthly mortgage payment, 36% or less of your monthly income (before taxes)?

5. In the last two years, have you paid all your loan and credit account bills on time?

6. Have the last two years of your credit history been free of foreclosures and bankruptcies?

If you are able to answer “yes” to all of the above questions, you are in a strong position to buy your own home. And if you are thinking of doing so, there are two special programs available to union members: The Union Plus Mortgage Program and the Homebridge Union Advantage Program. If you wish to use the Union Plus Real Estate Program to obtain a mortgage, you can call them toll-free at 1-800-848-6466. If you wish use the Homebridge Union Advantage Program call 212-481-7700. Better yet, call both of them to make sure you get the best rate!