The Ohio Heroes Homebuying Checklist: Steps to Take Before Applying

For Ohioans who serve their communities through qualifying public-service careers, the Ohio Heroes program can provide an opportunity to secure a discounted mortgage interest rate through the Ohio Housing Finance Agency (OHFA). But finding out that you may qualify is just the beginning. Taking time to prepare your finances and understand the mortgage process can make the application process much smoother.

If you’re exploring mortgages for nurses, researching homes for heroes, or trying to determine whether the Ohio Heroes program could benefit you, this checklist from First Union Home Finance can help you get organized before you apply.

1. Find Out If Your Career Qualifies

Before planning around the Ohio Heroes program, confirm that your profession meets the program’s eligibility requirements. Qualified Ohio Heroes may include veterans and active-duty military personnel, police officers, firefighters, emergency medical technicians and certain healthcare and education professionals.

However, professional eligibility is only one piece of the puzzle. OHFA also establishes requirements involving factors such as household income, property purchase price, credit, debt-to-income ratio and the home being purchased.

Review the current program guidelines and speak with an OHFA-approved lender to determine how those requirements apply to your circumstances.

2. Know Where Your Credit Stands

Your credit profile plays an important role in the mortgage process. Before you begin an application, review your credit reports and make sure the information they contain is accurate.

If there are outstanding issues, consider addressing them before moving ahead with your home purchase. Consistently making payments on time, paying down revolving debt and being cautious about opening new accounts may help you improve your overall credit profile.

Because OHFA programs have minimum credit score requirements, knowing your score ahead of time can help you identify whether you’re ready to pursue a mortgage or whether additional preparation makes sense.

3. Add Up Your Existing Debt

Your income tells a lender how much you earn, but your existing financial obligations help determine how much of that income is already spoken for.

Make a list of your recurring debts, including student loans, auto payments, credit card balances and other loans. Understanding your debt-to-income ratio can help you and your lender determine how a potential mortgage payment could fit into your monthly budget.

This step is especially important for renters preparing to become homeowners. In addition to your mortgage, remember to account for expenses such as property taxes, homeowners insurance, maintenance and utilities when considering your overall housing budget.

4. Figure Out Your Available Cash

The amount you can comfortably spend on a home isn’t determined solely by your potential mortgage payment. You’ll also need to plan for expenses that arise before and at closing.

Depending on your circumstances, those costs can include your down payment, closing costs, home inspection, appraisal and other purchase-related expenses.

Eligible Ohio Heroes may also have access to OHFA down payment assistance, depending on the applicable program and qualification requirements. Exploring those options early can help you understand how much money you may need to bring to the table.

5. Get Your Paperwork in Order

A mortgage application requires documentation that gives your lender a clear picture of your financial situation. Preparing these documents ahead of time can help reduce delays once you’re ready to apply.

Commonly requested information may include recent pay stubs, W-2s, tax returns, bank statements and documentation of current debts and assets.

You may also need documentation confirming your eligibility for the Ohio Heroes program. Having employment or service-related documentation ready can make it easier to establish your eligibility when you begin the application process.

6. Review the Latest OHFA Guidelines

Mortgage programs aren’t static. OHFA requirements, income limits, purchase-price limits and other program details can change, so it’s important to rely on current information when planning your purchase.

Requirements may also differ depending on which type of mortgage you use.

Rather than relying on information from an older article, previous home purchase or someone else’s experience, review the current OHFA guidelines and discuss your situation with an approved lender. That can help you avoid making assumptions about your eligibility.

7. Complete Any Required Homebuyer Education

Homebuyer education may be required depending on the OHFA program and your individual circumstances.

Even if you’ve purchased a home before, education can be a useful opportunity to review important aspects of the process, including budgeting, credit, financing, inspections, insurance and the ongoing responsibilities of homeownership.

If education is required for your loan, completing it early can help you avoid unnecessary delays later in the process.

8. Connect With an OHFA-Approved Lender

Once you’ve reviewed your finances and have your documentation together, talk with an OHFA-approved lender about your options.

First Union Home Finance can help you determine whether you may qualify for Ohio Heroes, review the mortgage programs available to you and explain how potential down payment assistance could fit into your home financing strategy.

A conversation with a lender can also help turn a general idea of what you can afford into a more specific understanding of your potential loan options.

Start Preparing for Your Ohio Heroes Mortgage

The Ohio Heroes program can offer valuable mortgage assistance to eligible Ohio public-service professionals, but preparation is an important part of taking advantage of the opportunity. Reviewing your credit, understanding your debt, organizing your finances and learning the current program requirements can put you in a better position when you’re ready to apply.

Whether you’re researching mortgages for nurses, exploring homes for heroes, or simply want to understand what Ohio Heroes could mean for your homebuying plans, First Union Home Finance can help you explore your options.

Ready to take the next step? Contact First Union Home Finance to learn more about the Ohio Heroes program and discuss your home financing options with our team.