Buying a Home
Buying your first home is a big step. We’ll help you understand the process, explore your options and move forward with confidence.
Step 1: Get your finances ready
When to start: 6–12 months before you plan to buy
How much should I save?
Start by planning for three things: your down payment, closing costs and money for the unexpected. A 20% down payment isn’t your only option. UW Credit Union offers first-time homebuyer programs with down payments as low as 3%, depending on the loan and your situation. Get an understanding of how much house you can comfortably afford before you view any homes.
How does my credit affect my mortgage?
Your credit can affect the interest rate and loan options available to you, so it helps to review your credit report early. You can request your credit reports at AnnualCreditReport.com. If you’d like support, schedule a free Credit Consultation with a UW Credit Union financial specialist. We’ll look at your situation with you and help you make a plan—without judgment or obligation.
Plan for more than the down payment
It’s easy to focus only on the down payment, but a comfortable homebuying budget includes three savings goals:
- Down payment: Some first-time buyer programs allow as little as 3% down. A larger down payment may lower your monthly payment and could help you avoid private mortgage insurance.
- Closing costs and prepaid expenses: These often add up to 2%–5% of the loan amount and may include the appraisal, title services, taxes and initial insurance or escrow costs.
- Emergency savings: If possible, keep enough set aside to cover a few months of living expenses after closing. That gives you a cushion for repairs and other surprises that come with owning a home.
Explore a step-by-step interactive experience to see how down payments, credit scores, and everyday expenses shape your buying timeline.
Run the numbers on your monthly income and current debts to see a realistic, comfortable price range before touring homes.
Determine the exact safety net you will need to keep set aside for maintenance and emergencies after your loan closes.
Not quite ready to buy?
“I want to feel more confident with my money.”
Start with simple budgeting tools and everyday money habits.
“I want to build or improve my credit.”
Learn what affects your credit and the steps you can take to strengthen it.
“I’m ready to start saving.”
Explore how much to save, where to keep it and how to build a financial cushion.
Step 2: Get preapproved1
When to start: 3–6 months before you plan to buy
Why does preapproval matter?
A mortgage preapproval shows sellers that you’re ready to buy. It also gives you a clearer idea of your price range before you start touring homes. Unlike prequalification, preapproval includes a closer review of your income, assets and credit. Learn what to expect from the mortgage application process.
What should I know about mortgage rates?
Mortgage rates can change from day to day and affect what you can comfortably afford. Check today’s mortgage rates to get a sense of the market. Once you’re preapproved and have found a home, your loan officer can explain your rate-lock options and help you choose what works for your timeline.
Fixed-rate or adjustable-rate mortgage?
Deciding on a mortgage depends on your budget, timeline and comfort with future payment changes. Here’s a quick look at the two main options:
Fixed-rate mortgage: Your interest rate stays the same for the life of the loan, making your principal and interest payment predictable.
Adjustable-rate mortgage (ARM): Your rate stays fixed for an initial period, then may change over time. An ARM may start with a lower rate, but your future payment could go up or down.
Not sure which option fits your needs? >> Compare current rates and educational terms
Complete a secure online application to verify your borrowing capacity and receive an official preapproval letter.
Step 3: Build your homebuying team
When to start: 2–3 months before you begin shopping
Who can help me buy a home?
You don’t have to figure it all out on your own. A buyer’s real estate agent can help with your search and offer, while our local mortgage loan officers can help you understand your budget, closing costs and loan options. UW Credit Union’s mortgage team is here to answer questions and guide you through each step.
Step 4: Start your home search
Typical timeline: 1–3 months, though every search is different
How do I narrow down my search?
Start with your must-haves, such as location, number of bedrooms and overall condition. Then make a separate list of features you’d like but could change over time. Keeping those lists distinct can make it easier to spot a home that fits your needs and budget—even if it isn’t perfect on day one.
What costs should I plan for beyond the mortgage?
Your monthly mortgage payment is only part of the cost of owning a home. Remember to budget for:
Property taxes: Costs vary based on your local municipality and school district—even between nearby communities.
Homeowners insurance: Your premium may depend on factors such as the home’s age, condition and location. Flood insurance may also be required in some areas.
HOA fees: Some communities charge monthly or quarterly dues for shared spaces and services. Ask about the rules and whether special assessments are planned.
Maintenance and repairs: A common guideline is to set aside 1%–2% of the home’s value each year. Your actual costs will depend on the home, but building a repair fund can help you handle expenses as they come up. If you’re planning a larger renovation down the road, a home equity line or personal loan may be worth exploring.
Get in Touch
We want you to feel at home with your home loan. That's why our local experts are always ready to answer your questions, understand your goals and help you take a smart step forward.
Phone Number
Already started an application? Pick up where you left off.
ITIN Lending - UW Credit Union is proud to accept ITIN for mortgage lending applications.
Are you a realtor? Explore our Realtor Resource Center and discover why we’re a top Wisconsin lender.