When you apply for a mortgage, the lender will "pull" (request) your FICO® credit score to determine your creditworthiness. In some cases, applying for credit may affect your score.
Rates starting at % (
% APR)¹
Affordable home ownership.
Low rates
Lock while you shop2
0% down loan options
STAGE 1
Thinking About Buying A Home
STAGE 2
Looking for a Home
STAGE 3
Getting a Mortgage
STAGE 4
Closing & Moving In
1. THINKING ABOUT BUYING A HOME?
The first stage of buying a new home is considering your options and making
the decision
to take the next step.
Here are some resources to help you get started.
Transitioning From Renting to Home Ownership
Buying Your First Home
Buying a home takes time, but the transition from renter to owner doesn’t have to be
intimidating, especially when you know what to expect up front.
This
article will help you understand the process and what to expect along the way.
Should I Rent or Buy?
Compare Costs Between Renting and Buying
Do you know how the costs of a new home might compare to what you're paying now? After all, buying a home is one of the most important financial decisions that you will make.
The New York Times created an online calculator that helps you compare the costs of renting to the cost of ownership, depending on your individual situation. It's one of the best we've found to help you determine what option is right for you.
Making Homeownership More Affordable
HomeReady® Is Here to Help
HomeReady is a program offering solutions to future homeowners needing help with mortgage approval, whether due to income or down payment requirements. HomeReady also offers assistance for homes purchased in select redevelopment regions within the United States.
Interested in your options? Our Mortgage Center is here to help.
Understanding Mortgage Costs
6 Considerations You Need To Know
The cost of buying your own home includes more than just the sales price. From points to loan terms and closing costs, many factors affect the total cost you end up paying.
These six factors should be taken into consideration before signing on the dotted line.
Related Articles
Interested In Learning More?
Here are a few additional articles to help you make your home buying experience even better.
Buying Your First Home
Buying a home takes time, but the transition from renter to owner doesn’t have to be
intimidating, especially when you know what to expect up front.
This
article will help you understand the process and what to expect along the way.
2. Looking For A Home?
Are you trying to find that "just right" home but don't know where to start? Or maybe you've seen hundreds of properties online but you aren't sure which ones are right for you?
PenFed real estate services can help, providing you a streamlined home shopping and financing experience.
Receive a real estate broker paid closing credit up to $1,500 through the PenFed Homes Program3 when you leverage our team of mortgage experts with qualified network real estate agents.
How Much Can I Afford?
Simplify your home search by knowing your price range to look for.
Our Affordability Calculator can help you estimate the price based on income, monthly debts, down payment, and the length of the loan term.
Follow these steps to see your results:
Step 1: Enter your annual income.
(If more than one person will own the home, include his or her income as well.)
Step 2: Input your monthly debts - and the debts of any co-owners.
Step 3: Input a down payment amount.
Step 4: Select a loan term. (Many people start with a 30-year term.)
Step 5: Calculate and view your results!
MORTGAGE AFFORDABILITY CALCULATOR
The calculator above is for educational purposes only. Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing a loan.
3. GETTING A MORTGAGE
Once you have an idea of how much you can afford and what you're looking for in a new home, it's time to get a mortgage.
We'll walk you through the process and let you know what you need and what to expect when prequalifying or applying for a mortgage loan.
MORTGAGE TERMS
Navigating a mortgage application or reviewing a new home listing can be confusing, especially when everyone seems to be speaking a different language.
MORTGAGE TYPES
What mortgage type is best for you? It depends! Take a look at your options, compare rates and features, and find the mortgage right for you.
TOOLS & RESOURCES
Find more tools and resources here:
GREAT MORTGAGES FOR FIRST TIME HOMEBUYERS
Below are common types of mortgages to choose from.
Want to explore specific product options and current rates? Explore your options here.
| Mortgage Types | Benefits | Great For: |
|---|---|---|
| First Time Home Buyer Advantage | 3% Down Payment No income limits |
Buyers wanting a low down payment of 3% | Conventional Fixed Rate Options | Multiple term options available Stable payments over the life of the loan |
Buyers wanting a down payment of 5% or more |
| Low Down Payment Options | HomeReady and First
Time Home Buyer options available Down payment & closing costs OK from multiple sources (including gifts and grants) A wide range of income sources accepted for qualification Online Homebuyer Education for First Time Homebuyers required for select programs |
Buyers wanting a down payment as low as 3% | VA Loan Options1 | Fixed and adjustable options available For qualified military, veterans, and family members |
VA qualified buyers wanting a down payment as low as 0% |
| Adjustable Rate Options | Multiple term options available Low initial rates |
Buyers planning to move within the next 5 to 7 years |
4. Closing and Moving In
Once you've closed on your home, its time to move in.
Check out these moving tips now.
FREQUENTLY ASKED QUESTIONS
No. There are many options for homeowners who do not want to put down 20%, including VA loans, HomeReady® options, and many others. Contact PenFed mortgage to see what options are right for you.
Closing costs are fees and expenses you pay when closing your mortgage loan. All loans have them.
According Freddie Mac, average closing costs can vary between 2 to 5% of the total purchase price and include items such as title fees, appraisal fees, inspection fees, and other fees. The good news? You may be able to negotiate with the seller and have them cover a portion of the costs.
An escrow account usually refers to an account created by a neutral party to hold funds before closing or as part of your monthly mortgage payments. Before closing, escrow accounts may be used for items such as earnest money, home inspections, and other pre-closing expenses.
After closing, escrow accounts can be included in mortgage payments and used to pay for homeowners insurance, property tax, and more.
When a sale falls through, you may or may not get your good faith deposit back.
Before entering into a contract to buy a home, be sure to verify in what situations your money will be returned to you.
Disclosure
1Except for holidays, rates are updated Monday through Friday at 10:15am EST. The advertised rates and points are subject to change. The information provided is based on discount point, which equals
percent of the loan amount, and assumes the purpose of the loan is to purchase a property with a 30-year, conforming, fixed-rate loan. Loan amount of $400,000; loan-to-value ratio of 75%; credit score of 760; and DTI of 18% or less. The property is an existing single-family home and will be used as a primary residence. The advertised rates are based on certain assumptions and loan scenarios, and the rate you may receive will depend on your individual circumstances, including your credit history, loan amount, down payment, and our internal credit criteria. Other rates, points, and terms may be available. All loans are subject to credit and property approval.
Rates quoted require a loan origination fee of 1%; not to exceed $1995. Speak to a PenFed Mortgage Loan Officer for additional details.
²Power Buyer Lock While You Shop is applicable to first mortgage pre-approval home purchases that have received approve/eligible finding. Not applicable on HELOC or refinance transactions. To ensure timely closing within the rate lock period, the borrower should provide an executed sales contract and full property address to PenFed within the initial 30 days of the lock period. Extending a rate lock is subject to applicable rate extension fees to be paid at closing.
3Members are eligible to receive the real estate broker paid closing credit when their transaction is completed with both PenFed mortgage and the referred PenFed real estate network agent to purchase their new home. Member must use the PenFed qualified real estate network agent assigned to member to close their real estate transaction. If Member has already closed on a property or are currently using, and wish to continue using, an unqualified PenFed network real estate agent, Member will not qualify for this benefit. Real estate broker-paid closing cost credit will be $1,000 for purchase prices less than $700,000 and $1,500 for purchase prices greater than or equal to $700,000. Credit must be listed on the sales contract or addendum, and on the final Closing Disclosure (CD). Members can obtain lender and real estate services separately, but the real estate broker paid closing cost credit will not apply. The seller and/or other credits must be reduced if the loan has reached the maximum allowable credit limit per the loan product.
Due to state guidelines the real estate broker paid closing cost credit is not available in AK, IA, KS, LA, MO, MS, OK, OR or TN.
General Disclosures
If you withdraw an application that was locked and reapply within 30 days, the new application is subject to worst case pricing.
Points are the responsibility of the borrower and not covered in promotions.
To receive any advertised product you must become a member of PenFed.
