Categories: Rev. Dr. Charles Butler,
Rev. Dr. Charles Butler
An unfortunate truth of home buying for prospective first-time buyers today is facing the harsh reality of not earning enough money to afford to purchase a home at today’s prices.
I mentioned to some friends how I could not afford to buy my home at its current market value. You cannot allow any more time to pass by. If you are ever going to successfully complete the home buying process, you must first start the process.
However, too many prospective first-time home buyers appear to be so discouraged over this situation that they are ready to forgo their dream of homeownership altogether, and just be happy with renting. But you must understand the rents will continue to increase significantly and will soon be unaffordable for many Harlem residents.
I want to encourage you not to give up your dream; homeownership is still a reality. Push past your anxieties. Home buying requires you to have faith that you can succeed. The Apostle Paul reminded his son in ministry, “God did not give us a spirit of fear, but power, love, and a sound mind,” 2nd Timothy 1:7.
Here are a few helpful tips to assist you in completing the process: (1) Attend the home buyer education workshop with Harlem Congregations for Community Improvement, Inc. (HCCI).
This program will equip you with knowledge and provide step-by-step instructions. You will gain the confidence needed to complete the home buying process. You will learn how to assemble your home buying team from industry professionals. You will receive the knowledge of the home buying process that will enable you to make better decisions.
(2) Create a monthly household budget and aggressively save as much money as possible.
Avoid all wasteful spending. The home buying process is extremely expensive. You will need lots of money to cover the minimum down payment, closing costs, and other fees associated with purchasing a home. Most lenders will require at least 3-4 months of mortgage payments in the same account after you close on the property.
(3) Create a personal purchasing plan. If you fail to plan, you plan to fail. Detail exactly what steps you need to take to successfully complete the home-buying process, including your savings, the type of property you can afford, and the projected purchase date in your plan.
(4) Use credit responsibly. Lenders want to see 24 months’ clean credit history with at least 3-4 active credit accounts. Pay your debts on time. Pay more each month than the minimum amount. Avoid late fees, penalties, and additional interest payments. By staying on top of your credit debt, you will increase your monthly savings. The biggest reasons mortgage applications are denied are poor credit history and high credit debt.
If you are interested in attending the HCCI workshop or have questions regarding the home buying process, contact Rev. Dr. Charles Butler at (212) 281 4887 ext. 231 or email cbutler@hcci.org.
