Each June, National Homeownership Month is observed nationwide to highlight the value of homeownership and support those preparing to buy a home. It’s an ideal time especially for first-time buyers to learn the steps, costs, and key decisions involved in the process.
A Brief History of National Homeownership Month
National Homeownership Month is recognized annually in June and evolved from National Homeownership Week, first introduced in 1995. In 2002, it was expanded into a month-long observance to emphasize the importance of homeownership in strengthening families, communities, and financial well-being.
Today, it serves as a reminder of the value of responsible homeownership while promoting education, accessibility, and resources for those looking to purchase a home particularly first-time buyers.
Why Homeownership Matters
Owning a home can provide both personal and financial benefits, including:
- Building equity over time
- Greater stability compared to renting
- Potential tax advantages
- A stronger sense of community
For many families, homeownership is also a long-term investment in their future.
What First-Time Home Buyers Should Know
Buying your first home can feel overwhelming, but understanding the process step by step can make it more manageable.
1. Start with Financial Preparation
Before you begin your home search:
- Review your credit score: A score of 620 or higher works for most loans; 720+ may qualify you for the best rates
- Save for a down payment: Typically 3–20% depending on the loan
- Plan for closing costs: Usually 2–5% of the purchase price
Preparing early helps position you for success.
2. Know the Difference: Pre-Qualification vs. Pre-Approval
- Pre-qualification
- A quick estimate based on information you provide
- Helpful for budgeting
- Not a guarantee of financing
- Pre-approval
- Requires verified financial documents
- Provides a formal loan amount
- Shows sellers you are a serious buyer
Pre-approval can give you a competitive advantage when making an offer.
3. Work with Trusted Professionals
An experienced local real estate agent can:
- Help you understand market conditions
- Guide negotiations
- Identify potential issues with properties
4. Define Your Priorities
Before touring homes, create a list of:
- Must-haves
- Nice-to-haves
As you view homes, pay attention to:
- Location and commute time
- School districts
- Property taxes and HOA fees
- Overall condition of the home
5. Make a Strong Offer
When you find the right home, your offer may include:
- Purchase price
- Earnest money deposit (typically 1–3%)
- Contingencies (inspection, appraisal, financing)
Always include a mortgage contingency for added protection.
6. Complete the Loan Process
After your offer is accepted, you’ll:
- Submit documents (pay stubs, W-2s, tax returns)
- Finalize your application and disclosures
- Secure homeowners insurance
During underwriting, your lender verifies your financial and property information. Once approved, you’ll receive a clear to close.
7. Prepare for Closing Day
Before closing, you’ll complete a final walkthrough to confirm the home’s condition.
On closing day:
- Bring two forms of ID
- Provide your cash to close
- Sign all final documents
Then you receive your keys.
8. Take Care of Post-Closing Details
After moving in, remember to:
- Set up utilities
- Change locks
- Update your address (USPS, bank, accounts)
- Update your driver’s license
- Keep your closing documents organized
How Self Reliance Financial Federal Credit Union Can Help
Self Reliance Financial Federal Credit Union is here to guide you every step of the way from pre-approval through closing. With competitive mortgage options and personalized support, we’re committed to helping you navigate the homebuying process with confidence.
Final Thoughts
National Homeownership Month is more than a celebration it’s an opportunity to learn and take the first steps toward homeownership. With the right preparation and support, owning a home is within reach.
If you’re ready to begin your journey, Self Reliance Financial Federal Credit Union is here to help you get started.