Home Buying

Buying a Home: What to Know Before You Get the Keys

Buying a home is exciting. Most people picture the fun parts first: finding the perfect place, placing the couch, or watching a dog run around the backyard.

What’s often harder is figuring out how to make that dream a reality.

From understanding what you can afford to choosing the right mortgage and avoiding costly mistakes, the home buying process can feel overwhelming. The good news? With the right guidance, it doesn’t have to be.

Here’s a straightforward breakdown of what to expect, so you can feel confident and prepared as you unlock the door to homeownership.

Start With a Mortgage Expert (Mortgage Loan Officer)

For most buyers, a mortgage (or home loan) makes buying a house possible. A mortgage expert acts as your financial guide throughout the process and can help you:

Understand how much home you can realistically afford
Compare mortgage options
Navigate the loan process, from pre-approval to closing

Talk to a mortgage expert

You’re not expected to know everything. That’s what your Ascentra Mortgage Expert is there for.

Shopping for the Right Home

Finding the right home can be challenging, but it’s important to be realistic. Make a list of must-haves, identify dealbreakers, and stay open to compromise. If you’re considering a fixer-upper, be honest with yourself about your skills, budget, and time.

Pre-qualification vs. Pre-approval

Pre-qualification is a rough estimate based on basic information. Pre-approval verifies your income and finances by reviewing official documents.

Often required by realtors
Show sellers you’re a serious buyer

Neither guarantees final loan approval; further verification happens after you make an offer. Ascentra only offers pre-approvals.

GET PRE-APPROVED

Lenders also consider a borrower’s credit score and employment history.

While a score of 620 is preferred, approval is based on multiple factors, including stable, consistent income with no unexplained gaps or reductions. At Ascentra, qualified borrowers receive the best available rate on traditional fixed-rate mortgages, without rate increases tied solely to credit score.

No matter where you are on your homebuying journey, Ascentra is here to help. Mortgage options may be available for borrowers with lower credit scores, and our financial coaches can help you build a stronger financial foundation for the future.

Common Mortgage Options

Choosing the right mortgage plays a key role in long-term affordability.

Fixed-rate mortgages remain the most common option, offering stable payments over 10, 15, or 30 years.
Adjustable-rate mortgages (ARM) may offer lower initial rates for a set period, though payments can change later based on the economy.

An ARM can be beneficial when interest rates are high and expected to drop, but payments may increase if rates rise.

Down Payment

One of the biggest hurdles for first‑time buyers is the upfront cost. Down payments typically range from 3 to 5% of a home’s purchase price, and buyers may also need to cover closing costs. For those struggling to save while managing rent, student loans, and daily expenses, those costs can feel out of reach.

Closing Costs

Closing costs are fees required to finalize the mortgage. They may include additional fees for appraisals, inspections, and title services, and attorney and loan processing fees. These typically add an additional 2 – 6% to the home’s purchase price.

Note: In some cases, buyers can negotiate for the seller to cover part or all of these costs during the offer process.

How Much Can You Afford?

A good starting point is running the numbers yourself. Use our calculator below to estimate your monthly payment, then connect with a mortgage expert for a full picture — including the insurance, property tax, and closing cost fees that make up your true total.

SEE WHAT YOU CAN AFFORD

What Is Private Mortgage Insurance (PMI)?

When configuring your loan and working with your mortgage expert, it’s important to know that if your down payment is less than 20% of the total home value, you’ll be required to pay for PMI.

PMI protects the lender if the loan goes into foreclosure, not the borrower. In many cases, PMI can be removed once the borrower has built 20% equity in the home, though some exceptions may apply.

Down Payment Assistance & Grants

If saving for a down payment feels challenging, assistance programs may help. Some cities, counties, and organizations offer grants for income‑eligible buyers and/or homes purchased in certain locations.

To help make homeownership more attainable, Ascentra offers a $15,000 First‑Time Home Buyers Grant for income‑qualified buyers through a partnership with the Federal Home Loan Bank of Des Moines. These grants are subject to funding availability and can be used toward both down payment and closing costs, helping to reduce the upfront financial burden.

Ongoing Costs of Homeownership

Now that you’ve found your house, worked through the loan options and understand the additional fees, it’s time to think about the ongoing costs of homeownership.

Homeowners Insurance

Home insurance helps protect you from fire, severe weather, theft or burglary, or other unexpected losses. These coverages and cost vary by provider, so research and plan according to your specific needs and wants.

Property Taxes

Property taxes are assessed by the county and depend on home location and property value and features.

Both insurance and property taxes can be paid separately or rolled into your monthly mortgage payment. Note: these costs often rise over time, which can increase your monthly payment.

Repairs and Emergencies

Homeownership also brings responsibility for repairs and maintenance. Plumbing issues, roof leaks and appliance breakdowns are no longer a landlord’s responsibility. Financial experts often recommend setting aside savings equal to about three months of mortgage payments to help cover unexpected repairs or rising costs.

A Critical Tip: Don’t Make Financial Changes

Once buyers apply for a mortgage, financial stability is critical. Opening new credit cards, making large purchases or moving significant amounts of money can put loan approval at risk.

ITIN Lending Option

Borrowers without a Social Security number may qualify for ITIN lending.

The IRS issues an Individual Taxpayer Identification Number (ITIN), which can be used to apply for a mortgage at participating banks or credit unions, including Ascentra.

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From Offer to Closing

After your offer is accepted, your mortgage officer helps manage your appraisals, title work, and flood certifications.

During this time, you’ll shop for homeowner’s insurance and may continue negotiations with the sellers after the new house has been inspected.

From choosing your new home to its closing day, the process typically takes 30 to 45 days. At closing, final documents are signed, remaining payments are made and keys are transferred, usually within one to two hours.

Homeownership is within reach, and Ascentra is here to help you get there. From your first questions to the day you get your keys, our Mortgage Experts are ready to guide you every step of the way.

You can also join one of our free First-Time Home Buyers Education Webinars — a great way to build confidence before you begin, and attendees receive a $200 coupon toward closing costs.

Talk to a mortgage expert

VIEW UPCOMING WEBINARS

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How Does Gas Price Impact Your Summer Vacation

Jun 30, 2026

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Make Summer Travel More Affordable

June marks the start of summer vacation season, but this year’s travel planning is happening in a vastly different economic environment. With inflation still pressuring household budgets and gas prices climbing across much of the U.S., many families are taking a closer look at what a trip will really cost before they pack the car. The good news? A few smart choices before you leave, and along the way, can help keep more money in your pocket.

Get the Most from Every Fill-Up

Rising gas prices are one of the most noticeable ways the economy affects daily life. As summer demand increases, even routine road trips can feel more expensive before they begin. Federal tracking showed the U.S. average at about $4.50 per gallon in the latest update, while AAA’s daily average recently moved above that level. That means efficiency matters more than ever. Start with the basics: check your tire pressure before you hit the road, remove heavy items you don’t need, and avoid rapid acceleration and hard braking. Maintaining a steady speed and using cruise control when conditions allow can help improve fuel economy over long drives.

Also consider timing and routing. Planning your fill-up stops before you leave can reduce last-minute, high-priced purchases near tourist areas. Gas price comparison apps such as GasBuddy or Mudflap can help you find lower-priced stations nearby and along your route.

Understand the “Hidden” Costs of Fuel

When fuel costs rise, they don’t just affect your drive, they can influence prices throughout the travel experience. Higher energy costs often ripple into airfare, lodging, food, and entertainment, which is one reason many consumers are feeling stretched in today’s economy. Recent inflation data showed overall prices rising 3.8 percent year over year, with energy going up sharply and gasoline going up even more. A simple strategy is to prioritize what matters most: set a daily spending target for fun extras, look for bundled attraction passes, and consider free or low-cost local options such as parks, festivals and community events to balance bigger-ticket activities.

How Ascentra Can Help

If you’d like added flexibility for summer plans, Ascentra Credit Union offers options that may help you manage cash flow. A personal loan can be a way to cover planned expenses, like a family trip, with predictable payments. Prefer to plan ahead? A club savings account can help you set aside money throughout the year for seasonal spending. And if an unexpected expense hits at the wrong time, Skip-A-Payment may allow eligible members to defer a loan payment (processing fees and restrictions apply).

Bottom Line

Every trip has its own challenges, but a little planning can go a long way. Map your route and fill-up locations, use available tools to compare prices, and practice fuel-smart driving habits. Whether you’re traveling far, staying close, or enjoying a staycation, Ascentra is here to help you make summer more affordable, and more enjoyable.