Tag Archives: Mortgage

Ask These Questions Before Applying for a Mortgage

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Buying a home is a major financial decision, and the mortgage process can involve many unfamiliar terms, documents, and decisions.

Before you apply, it helps to know which questions to ask. Here are some to think about and discuss with your mortgage lender before you begin the application process.

1. How Much Home Can I Comfortably Afford?

Your lender can help you estimate how much you may qualify to borrow, but that number is only part of the picture.

Ask what your estimated monthly payment could look like for different home prices. Beyond principal and interest, your monthly housing costs may also include property taxes, homeowners insurance, mortgage insurance, and HOA fees.

Next, compare that estimate with your overall budget. Aim for a payment that feels manageable and still leaves you room for savings, everyday expenses, and your other financial obligations or loan payments.

2. How Much Should I Save for a Down Payment and Closing Costs?

A down payment is one of the most noticeable costs of buying a home, but it’s not the only upfront expense. Ask your lender how much you may need to budget for:

  • A down payment
  • Closing costs
  • Prepaid taxes or insurance
  • Inspections

The above amounts will vary depending on the mortgage loan and property you choose.

3. How Will My Credit and Existing Debt Affect My Mortgage Options?

Your credit history and current debt can significantly affect your mortgage approval. Ask how your credit profile may influence the loan options and rates available to you.

Understanding your debt-to-income ratio, which compares your monthly debt obligations to your gross monthly income, is another major factor to consider. Credit cards, auto loans, student loans, and other debt may all factor into that calculation.

If you aren’t quite ready to apply, ask whether there are steps you can take to strengthen your financial position before moving forward.

4. Should I Get Preapproved Before I Start Shopping?

If you’re serious about your home search, ask about mortgage preapproval. A lender typically reviews more detailed financial information during the preapproval process to estimate how much you may be able to borrow, subject to additional requirements and final loan approval.

A preapproval can help you establish a realistic price range before you begin touring homes. Ask what documentation you’ll need, how long the preapproval remains valid, and whether anything could affect it while you’re shopping.

5. Do I Qualify for a First-Time Homebuyer Program?

This is an important question to ask, even if you’re not sure whether you qualify.

First Financial, in partnership with the Federal Home Loan Bank of New York, offers Homebuyer Dream Program® options to eligible first-time homebuyers purchasing a primary residence in Monmouth or Ocean Counties.* These grants can help cover a down payment, closing costs, and homebuyer counseling services.

Eligibility requirements vary by option and may include household income, property location and other criteria. Funding is limited and available on a first-come, first-serve basis.

6. What Documents Will I Need?

Gathering documents ahead of time can help make the mortgage process easier. Your lender will likely request proof of your income, employment, assets and debt. The documents required depend on your financial situation and the type of mortgage you’re seeking.

Ask for a checklist early so you can start organizing what you’ll need. Our Homebuyer’s Guidebook is a helpful place to start.

7. What Should I Expect Between Application and Closing?

Before you apply, ask your lender to help walk you through the process. You may want to know:

  • What happens after you submit an application?
  • What does underwriting involve?
  • When will the home need to be appraised?
  • What could delay the process?
  • How long does the process typically take?
  • When will you receive final loan terms and closing information?

Understanding the steps ahead can make the process feel more manageable and help you respond quickly if additional information is requested.

Start the Conversation Early

You don’t need to have everything figured out before speaking with a mortgage lender. Starting the conversation early can help you see what you’re already doing well, what you may need to prepare for, and what could make homeownership more attainable.

The Loan Department at First Financial can help you explore mortgage options, discuss preapproval, and determine what you might qualify for.

Thinking about buying a home in Monmouth or Ocean County in NJ? Schedule a Mortgage Q&A session with us or call 732-312-1500, Option 4 to take the next step toward homeownership.**

*The FHLBNY and First Financial Federal Credit Union (FFFCU) reserve the right to change the Homebuyer Dream Program® terms and conditions at any time, without prior notice. The household also fully understands that the limited funds are available on a first-come, first-served basis and even if the household meets all of the terms and conditions, this does not guarantee that there may be funds available at the time that the household qualifies. The FHLBNY, in its sole discretion, may refuse to honor a Homebuyer Dream Program® funding request. The household further agrees that any proceeds, which will not be, or cease to be, used for the purposes approved by the FHLBNY will be recaptured and the unused, or improperly used, grant will be returned to the FHLBNY. The household will also acknowledge receipt of a copy of these terms and conditions.

**Subject to credit approval. Minimum mortgage loan amount is $100,000. Available on primary residence only. Mortgage insurance may be required depending on loan guidelines. This is not a credit decision or a commitment to lend. If mortgage insurance is required, the mortgage insurance premium could increase the APR and the monthly mortgage payment. See Credit Union for details. A First Financial membership is required to obtain a Mortgage and is open to anyone who lives, works, worships, volunteers, or attends school in Monmouth or Ocean Counties. A $5 deposit in a base savings account is required for credit union membership prior to opening any other account. Other terms & conditions may apply, see credit union for details. Qualified borrowers must meet eligibility requirements including, but not limited to, property location, loan amount, loan type, occupancy, property type, loan-to-value, debt-to-income ratios, FICO credit scores, refinance with cash out and other variables. NMLS CU ID: 685814. Equal Housing Lender.  

Thinking About Buying a Home This Spring? Start With These 5 Questions

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Spring is one of the most popular times to buy a home and for good reason. Inventory tends to increase, the weather makes moving easier, and it’s the perfect season for fresh starts. But with more buyers entering the market, it’s also one of the most competitive times to purchase. If you’re thinking about buying a home this spring, taking a step back to ask the right questions can help you feel more prepared, confident, and financially secure throughout the process.

Here are five important questions to consider before you begin house hunting:

1. Am I financially ready?

It’s important to understand your financial foundation. This includes your income, savings, monthly expenses, and how much you can comfortably afford to pay for a mortgage payment. Beyond your down payment, you’ll also need to account for closing costs, moving expenses, and an emergency fund for unexpected repairs. Getting pre-approved for a mortgage is a great first step, as it gives you a clear picture of your budget and shows sellers you’re a serious buyer. If you’re local to Monmouth or Ocean Counties in NJ, we can help you get started on a pre-approval.*

2. Do I understand my credit?

Your credit score plays a major role in your homebuying journey. It can impact not only whether you qualify for a loan, but also the interest rate you receive. Before applying, take time to review your credit report, check for any errors, and understand where you stand. Even small improvements to your credit score can make a meaningful difference in your long-term costs. Learn more about this in our recent article on ways to help boost your credit if you’re looking for a home loan.

3. Have I planned for ongoing costs?

Owning a home comes with more than just a monthly mortgage payment. It’s important to plan for ongoing expenses like property taxes, homeowners’ insurance, utilities, maintenance, and potential repairs. Thinking through these costs ahead of time can help you avoid surprises and ensure your home remains a source of stability, not stress.

4. Am I prepared for a competitive market?

Spring often brings more listings, but also more buyers. That means homes can move quickly, and you may face multiple-offer situations. Being prepared is key. This includes having your financing in place, knowing your must-haves versus nice-to-haves, and being ready to act when you find the right home. Working with a trusted real estate agent and lender can help you navigate the process with confidence.

5. Do I have the right local support?

Buying a home is one of the biggest financial decisions you’ll ever make, and having the right support system matters. Working with a lender like First Financial means you’ll have access to personalized guidance, competitive loan options, and a team that understands the local market. From pre-approval to closing, having mortgage experts by your side can make the entire experience smoother and less overwhelming.

Ready to Take the Next Step?

Looking for a home this spring can be an exciting opportunity, but preparation is everything. By asking the right questions and building a strong foundation, you’ll be in a better position to find a home you love and a mortgage that fits your budget. Be sure to also take our guide to happy homeownership along with you!

If you’re ready to get started, we’re here to help guide you every step of the way. You can even schedule a video chat or phone call with one of our mortgage experts to get your homebuying journey started, with no commitment required. Happy spring house hunting!

*Subject to credit approval. Credit worthiness determines your APR. Rates quoted assume excellent borrower credit history and are for qualified borrowers. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. Higher rates may apply depending on terms of loan and credit worthiness. Minimum mortgage loan amount is $100,000. Available on primary residence only. The Interest Rates, Annual Percentage Rate (APR), and fees are based on current market rates, are for informational purposes only. Mortgage insurance may be required depending on loan guidelines. This is not a credit decision or a commitment to lend. If mortgage insurance is required, the mortgage insurance premium could increase the APR and the monthly mortgage payment. See Credit Union for details. A First Financial membership is required to obtain a Mortgage and is open to anyone who lives, works, worships, volunteers, or attends school in Monmouth or Ocean Counties.

Ways to Boost Your Credit if You’re Looking for a Home

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The weather isn’t the only thing heating up – the spring homebuying market will soon be, too. Whether you’re considering making your move this spring or further down the road, your credit score will have a direct impact on your ability to obtain a mortgage and what you will pay for your home over time. Keep reading to learn potential benefits to boosting your credit score and some different ways to do so, before applying for a mortgage.

What is your credit score important when applying for a home loan?

As you probably know, a credit score is the number lenders use to determine your creditworthiness. Check out our guide to understanding your credit score to see all the factors that make up your score. When looking to finance a home, lenders will use the information on your credit report to decide if you’ll qualify for a mortgage and if you do – how much you can afford to pay and the interest rate that will be offered to you.

What are the potential benefits of increasing your credit score before applying for a mortgage?

  • You’re more likely to qualify for a mortgage. Lenders want to see that you have been, and can continue making on-time payments if they were to lend to you. Additionally, they want to ensure you can comfortably take on your mortgage payment along with the other payments you are making on any outstanding debt.
  • Lower interest rates. The interest rate offered to you by a lender is again based on your credit profile. Qualifying for a lower mortgage rate can save you thousands of dollars over the life of the loan.

How can you boost your credit score?

  1. Pay Your Bills in Full and On Time

Payment history shows whether you’ve made on-time payments on your reported loans and if not, how late any previous payments were made. This has the biggest impact on your credit score – making up 35%. If a payment is late, it generally impacts your score negatively and delinquency can stay on your credit report for up to seven years. Over time, the impact of late payments on your score will decrease.

Making your loan payments on time will continue to improve your credit. Additionally, making all payments on past-due accounts can help you avoid further delinquency on your report and build positive payment history.

  1. Lower Your Credit Utilization

Your credit utilization is the amount of available credit you are using. To calculate yours, divide your total credit card balance by your total credit limit, then multiply that number by 100. As a rule of thumb, try to keep your credit utilization for each credit card to 30% or less. To lenders, higher utilization signals a higher risk of missing payments and defaulting on your debt – as it shows you are relying on borrowed money and could be struggling financially.

There are two ways to lower your credit utilization – pay down debt or request credit limit increases. Paying down debt brings the total amount down, while a credit limit increase brings your available credit up. However, try to avoid spending more to match any credit limit increase so you don’t find yourself in more debt.

  1. Slow Down on Applying for & Opening New Accounts

Opening numerous loans and credit cards in a short time can hurt your credit score. New accounts are tied to factors that make up your credit score, such as length of credit history and new credit.

Length of credit history considers factors like the average age of your accounts, and your oldest and newest accounts. Generally, a longer credit history is better for your credit and shows you’ve successfully managed your debt over time.

When you apply for new credit, an inquiry is placed on your credit report. An inquiry shows that a lender requested your credit information, likely to make a lending decision. Depending on other factors in your report, this inquiry may temporarily drop your score.

  1. Review Your Credit Report

Before applying for any type of loan, it is always best to obtain a copy of your credit report and verify that the information is accurate and up to date. This will help you catch potential errors, which you can correct by contacting the credit bureaus before applying for a loan. Federal law allows you to get a free copy of your credit report every 12 months from each credit reporting agency. You can request your free credit report at AnnualCreditReport.com.

If you’re located in Monmouth or Ocean Counties in New Jersey and considering springing into the homebuying market this season, we can help welcome you home with a First Financial Mortgage! Our mortgage loans have terms up to 30 years, personalized service, low fees, and no pre-payment penalties.* If you’re just getting started and have questions, schedule a no-commitment video chat or phone call with one of our mortgage experts. You can also register for our text alerts to see when our mortgage rates change. We’re happy to help with your homebuying journey every step of the way!

*APR = Annual Percentage Rate. Subject to credit approval. Credit worthiness determines your APR. Rates quoted assume excellent borrower credit history and are for qualified borrowers. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. Higher rates may apply depending on terms of loan and credit worthiness. Minimum mortgage loan amount is $100,000. Available on primary residence only. The Interest Rates, Annual Percentage Rate (APR), and fees are based on current market rates, are for informational purposes only. Rates and APRs listed are based on a mortgage loan amount of $250,000. Mortgage insurance may be required depending on loan guidelines. This is not a credit decision or a commitment to lend. If mortgage insurance is required, the mortgage insurance premium could increase the APR and the monthly mortgage payment. See Credit Union for details. A First Financial membership is required to obtain a Mortgage and is open to anyone who lives, works, worships, volunteers, or attends school in Monmouth or Ocean Counties. 

8 Essential Questions to Ask Yourself Before Moving

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Moving to a new home is an exhilarating journey filled with anticipation and new beginnings. Amidst the excitement, it’s crucial to pause and consider the practicalities to ensure a smooth transition. Here are eight essential questions to ponder before embarking on your relocation journey.

If you plan to buy, what are your financing options?

First Financial mortgage experts are here to help you every step of the way while you begin your homebuying journey in the Monmouth or Ocean County NJ area.* They are available for phone or video calls to answer all of your questions with no commitment required!

What are the total moving costs?

Before diving into the moving process, it’s essential to assess the financial implications from all angles. Be sure you are factoring in the cost of movers, storage, packing materials, cleaning services, moving insurance, etc. Each of these can have varying costs, so be sure to research ahead of time and find the best prices. By understanding these costs upfront, you can better plan and budget for your move.

What is the overall cost of living?

Beyond moving expenses, consider the broader financial impact of your relocation. Will your new location entail higher rent or homeowners’ fees? You’ll also need to factor in potential increases in commuting costs, utility bills, and everyday necessities like groceries. The price of something as simple as produce can significantly differ from one state to another, so be sure to research your potential new area. Understanding the overall cost of living, ensures you can comfortably afford your new lifestyle.

How do income and property taxes differ?

Tax rates vary significantly between states, impacting your financial landscape. Researching income and property tax disparities between your current and prospective location is crucial. These insights will help you gauge how taxes may affect your finances and can assist you in making informed decisions about your move.

What is the local job market like?

If your relocation involves finding a new job, you’ll need to assess the local employment landscape closely. Investigate job opportunities, unemployment rates, and median salaries in your desired area. Consider starting your job search before moving to alleviate stress and ensure a smooth transition into the workforce.

What is the immediate impact on income?

Whether securing employment before or after your move, you’ll need to evaluate the financial implications. Compare salary differences and factor in deductions for healthcare, dental, and vision plans. Do you have a 401k with your current job and does your new job offer a retirement plan? If so, don’t forget to ask about transition options for your retirement account to help avoid costly mistakes. If you’re relocating without a job lined up, devise a financial plan to cover expenses during your job search period.

What are the travel costs to visit loved ones?

Consider the logistics and expenses of visiting family and friends post-relocation. Assess whether you’ll be a short drive or a plane ride away, and research typical ticket prices for travel days. Calculate potential gas expenses for road trips and budget for any necessary car maintenance too.

Which belongings should I take?

Moving presents an opportunity to declutter and streamline your possessions. Evaluate what items are essential and consider donating, selling, or storing any unnecessary belongings. This not only reduces moving costs, but also simplifies the transition to your new home.

By addressing these essential questions and tapping into the support of First Financial, you can embark on your relocation journey with confidence and financial preparedness. Happy moving!

For more personalized assistance and tailored solutions call 732.312.1500, visit a branch, or explore our services online.

*APR = Annual Percentage Rate. Subject to credit approval. Credit worthiness determines your APR. Rates quoted assume excellent borrower credit history and are for qualified borrowers. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. Higher rates may apply depending on terms of loan and credit worthiness. Minimum mortgage loan amount is $100,000. Available on primary residence only. The Interest Rates, Annual Percentage Rate (APR), and fees are based on current market rates, are for informational purposes only. Rates and APRs listed are based on a mortgage loan amount of $250,000. Mortgage insurance may be required depending on loan guidelines. This is not a credit decision or a commitment to lend. If mortgage insurance is required, the mortgage insurance premium could increase the APR and the monthly mortgage payment. See Credit Union for details. A First Financial membership is required to obtain a Mortgage and is open to anyone who lives, works, worships, or attends school in Monmouth or Ocean Counties.

Why Winter Isn’t a Bad Time to Sell Your Home

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Contrary to popular belief, winter isn’t necessarily a bad time to sell your home if you are looking to put it on the market. Most would assume spring and summer are the best times of the year to list your home, but keep reading to find out why it may also benefit you to sell in winter.

  • Not as Much Competition

There are fewer homes on the market in the winter, so you most likely can be more aggressive with your pricing – being that there’s less out there to compete with.

  • Your Home May Get More Attention

By listing in the winter when there are usually fewer homes on the market, yours may pop up for those doing a home search must faster than it could in the spring or summer. In addition, if you’re using a realtor – chances are they have more time to devote to your listing in the winter than they would during prime spring housing market (March/April/May). You might even get to close faster in winter months because the calendar is typically less filled to complete appraisals, inspections, and get mortgage applications processed from lenders.

  • Potential Lower Costs

Some will say that contractors could offer better prices on home repairs or maintenance during winter (weather permitting of course), as well as moving companies may charge you less too. Do your research, and see if you can score a winter deal!

Once you’re ready to list your home, be sure it’s in the best shape to get you the best offer. Here are a few areas to stay on top of:

  • Cleaning – Before any listing photos are taken or any showing appointments are made, thoroughly clean your house. Vacuum, dust, wash the floors, and clean your bathrooms. An unclean home is sure to turn potential buyers away and fast.
  • Repainting – If there are any spots that need touching up or it’s easy to make a room that’s not a neutral color more neutral, get to repainting. It’ll be easier for potential buyers to envision the space in neutral colors or how they might make it their own.
  • Lighting – A lighter, brighter home is an attractive home and will typically help you sell faster.
  • Decluttering – Less is usually more, especially when it comes to selling your house. Buyers want to envision their own items out and around the home, not see yours. Nor do they want to open up your closets and have everything fall out on them. Declutter as much as possible before scheduling any showings.
  • Make small repairs – If you can quickly and easily repair any small cracks, polish your floors, re-grout, or remove carpet stains – do so.
  • Consider curb appeal – Make your home inviting for possible buyers. Pick any weeds, mow the grass if needed and the weather cooperates, clean up any leaves from the property, maybe even add outdoor plants or porch décor if applicable.

If you’re in the market for a home in Monmouth or Ocean Counties, First Financial is here for you! With competitive rates, lower fees, and personalized service – we’ll make your home buying journey a less stressful one. Our mortgage experts are also available to answer any of your home buying questions with no commitment required. Simply complete our quick online appointment form to get started. And if you’re just starting to shop but not ready to apply for a mortgage, complete our mortgage preapproval form to find out how much you can finance. We’re happy to help get you into your dream home this year!*

*APR = Annual Percentage Rate. Subject to credit approval. Credit worthiness determines your APR. Rates quoted assume excellent borrower credit history and are for qualified borrowers. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. Higher rates may apply depending on terms of loan and credit worthiness. Minimum loan amount is $100,000. Available on primary residence only. The Interest Rates, Annual Percentage Rate (APR), and fees are based on current market rates, are for informational purposes only. Mortgage insurance may be required depending on loan guidelines. This is not a credit decision or a commitment to lend. If mortgage insurance is required, the mortgage insurance premium could increase the APR and the monthly mortgage payment. See Credit Union for details. A First Financial membership is required to obtain a Mortgage and is open to anyone who lives, works, worships, or attends school in Monmouth or Ocean Counties.

Looking to Buy Your First Home? Here’s Where to Start

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Buying a home is one of the biggest decisions you’ll ever make. However, don’t let that scare you. While purchasing a home is a big deal that will ultimately help shape your future, it’s also an excellent investment. The value of most homes increases over time and may come along with helpful tax benefits too. As a potential new homeowner, there’s a lot to learn about the home buying process and we’re here to help! Here are some useful tips for first-time home buyers.

Figure out what you can afford

Before you start house hunting, you’ll need to know what your budget is. Our loan officers can help you determine a price range through a pre-qualification process, which involves using financial information to get an estimate of the maximum mortgage you should be able to obtain. As a rule of thumb, we recommend your monthly house payment be about 30% of your total monthly gross income. Our mortgage calculator can also help you determine your monthly payments as you plan out your budget.

Make a wish list for your dream home

Now, this is the fun part! Before creating a home wish list, ask yourself, “Where do I see myself in the next 5 to 10 years or longer?” Having a vision for you and your family will help put the details of your dream home into perspective. With this in mind, you’ll need to figure out the must-haves of your ideal home, including backyard requirements, size of the home, and neighborhood. All of these factors will have an impact on the overall cost of your home and whether or not it fits your budget.

Find the right mortgage

Many lenders offer a variety of home financing options to choose from. The type of mortgage you end up using will affect what you’ll need to qualify for the loan, and how you’ll pay it back. That’s why it’s important to understand your options before making a decision.

Here are the main types of mortgages that are out there:

  • Conventional: This mortgage is a typical home loan contract between the lender and the borrower, at the lender’s risk. The borrower’s property is security, which means the lender can take your home for non-payment of the mortgage. Conventional mortgages are the most common type of mortgage loan (averaging about three quarters of U.S. mortgages).
  • FHA (Federal Housing Administration): The FHA will insure the loan for the lender against loss, in case the buyer cannot make payments. This mortgage requires the buyer to carry mortgage insurance through the FHA.
  • VA (Veterans Administration): These home loans are backed by the federal government and offered by private lenders to qualified members of the armed forces, active military personnel, veterans, or their widows.
  • Adjustable Rate Mortgage (ARM): The interest on an ARM may vary up or down based on the market. ARMs often offer a lower beginning interest rate. However, this rate will go up over time.
  • Fixed Rate Mortgage: The interest rate on this agreement stays the same for as long as you hold your mortgage, no matter how interest rates change in the financial markets.

When it comes to understanding your financing options, we recommend consulting with one of our mortgage experts to learn more about the mortgage process.

Work with a realtor

The home buying process is already stressful enough, so why not take some of the work off your plate? A realtor can help you save time by pre-selecting homes within your price range and requirements. Not to mention – they’ll be fully immersed in market trends, tax information, and area considerations like school districts. As you get closer to purchasing a home, they will be your go-to for handling negotiations and arranging for a home inspection and appraisal. Once you’re ready to make an offer on a home, they can help with that too.

There are many important steps to the home buying process, even after your offer has been approved. Rest assured knowing a First Financial mortgage expert is here to help you along the way, should you be looking to purchase a home in Monmouth or Ocean Counties, NJ.*

Are you ready to get started? Apply for a mortgage loan today, call our Loan Department at 732.312.1500 Option 4, or visit a First Financial branch. Also be sure to check out our home buyer’s guide to help you through the research and application process.

Happy home buying!

*APR = Annual Percentage Rate. Subject to credit approval. Credit worthiness determines your APR. Rates quoted assume excellent borrower credit history and are for qualified borrowers. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. Higher rates may apply depending on terms of loan and credit worthiness. Available on primary residence only. The Interest Rates, Annual Percentage Rate (APR), and fees are based on current market rates, are for informational purposes only. Mortgage insurance may be required depending on loan guidelines. This is not a credit decision or a commitment to lend. If mortgage insurance is required, the mortgage insurance premium could increase the APR and the monthly mortgage payment. See Credit Union for details. A First Financial membership is required to obtain a Mortgage and is open to anyone who lives, works, worships, or attends school in Monmouth or Ocean Counties.