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June is National Homeownership Month, and it's the perfect time to start thinking about what it takes to buy your first home. At Solvay Bank, we’re committed to helping first-time buyers feel confident, informed and ready to take the next step toward homeownership.

Whether you’re just starting to save or preparing to close on your dream home, here are key tips to guide you along the way:

1. Saving for a Down Payment

Saving for a down payment can feel overwhelming, especially with the rising costs of everyday life. On average, first-time buyers put down around 6–7% of a home’s purchase price, according to the National Association of Realtors. Having a clear plan in place can make all the difference. Try these tips:

1. Set a realistic budget
2. Open a separate savings account for your down payment
3. Cut back on non-essential monthly expenses
4. Look into local and state first-time homebuyer assistance programs

To download a helpful tip sheet from the ABA Foundation with more info, click here. 

2. Check in on Your Financial Health

Before applying for a mortgage, it’s important to evaluate your financial health. Lenders will review your credit history, outstanding debts and income to determine your mortgage eligibility. Strengthening your financial foundation now can lead to better loan options and interest rates.

Here are a few smart moves to consider:

1. Check your credit report for errors
2. Pay down existing debt
3. Avoid late payments and keep credit card balances low
4. Don’t close old accounts—even if they’re paid off
5. Work to lower your debt-to-income ratio

Solvay Bank offers a free credit monitoring tool, Credit Partner, to help you track your score and set financial goals, available in Online and Mobile banking. 

Get more tips about financial health from the ABA Foundation.

3. Understanding the Mortgage Loan Process

The mortgage process doesn’t have to be a mystery. Knowing what to expect can make the homebuying journey a lot less stressful. Here’s a simple breakdown of the steps involved:

1. Get preapproved – Understand what you can afford and show sellers you're serious.
2. Submit your loan application – Once your offer is accepted, apply with a lender.
3. Underwriting – Your lender will verify finances and order an appraisal.
4. Prepare for closing – Shop for insurance and get your documents and funds in order.
5. Close and get your keys – Finalize your paperwork and move in!

Read the full ABA Foundation guide here. 

4. Learn Key Mortgage Terms

Homebuying comes with a lot of new vocabulary. Knowing the most common mortgage terms can help you feel more confident during conversations with lenders and real estate professionals. A few to remember:

• Fixed-Rate Mortgage: Same interest rate for the life of the loan.
• Adjustable-Rate Mortgage (ARM): Starts with a lower rate that may change later.
• Closing Costs: Fees due at closing for appraisals, title insurance, and more.
• Escrow: An account that holds money for property taxes and insurance.
• Appraisal: Determines the market value of the home.
• Mortgage Lender: The bank or financial institution that issues the loan.

Explore the full mortgage glossary from the ABA Foundation.

Ready to Get Started?

At Solvay Bank, we’re here to help you every step of the way. Whether you’re saving for your down payment or ready to apply for a mortgage, our team is here to support your homeownership goals.

Contact us today at 315-484-2205 or [email protected].