Would it be beneficial for me to open a savings account with a bank or credit union from which I plan to obtain a mortgage?

Question

As a first-time homebuyer with limited information or experience in the field, I'm planning to purchase my first home in winter 2024 or spring 2025. Currently, I have approximately $50,000 in my checking account, and I intend to increase this amount to $100,000 to $150,000 by then. I'm curious if there are any banks, credit unions, or special programs where transferring my funds could potentially ease the process of qualifying for a home mortgage or secure a more favorable deal?

P.S.: I plan to opt for a conventional loan with a 10-20% down payment, but I'm unsure if there are any better opportunities available for first-time homebuyers?

P.S.: I plan to buy a single family house in San Francisco Bay area.

Answer 1

I'm curious if there are any banks, credit unions, or special programs where transferring my funds could potentially ease the process of qualifying for a home mortgage or secure a more favorable deal?

Many credit unions will not give loans to non-members. You would have to check on how long you must have funds deposited in the credit union before they will give you a loan.

Currently, I have approximately $50,000 in my checking account, and I intend to increase this amount to $100,000 to $150,000 by then.

While it is good that you don't have the money you are saving for a down payment invested in the stock market, make sure that you are getting some interest on those funds. It would seem to be easy to get 4 or 5% via a high interest account, CD or even Treasury bills.

The problem you will have is that the financial institution with the best deal today, might not be the best one a year from now. You could move your funds and then never get a loan from that bank.

I plan to opt for a conventional loan with a 10-20% down payment, but I'm unsure if there are any better opportunities available for first-time homebuyers?

Sometime the state or a city might have a first time home buyer program. You will have to see what it takes to qualify regarding income, down payment; and what interest rate reduction is available.