Categories: Rev. Dr. Charles Butler,
Ok, so as we go into this new year one thing is certain becoming a first-time home buyer is going to be a challenging endeavor. That does not mean that it is impossible. But it will take a great deal of perseverance, discipline, determination, desire, and dedication to successfully complete the process.
Start with attending Harlem Congregations for Community Improvement, Inc. (HCCI) virtual’s home buyer education seminar 4-part series on Thursday evenings from 7:00 – 9:30 p.m.
This is the first step in your quest to successfully become a first-time homeowner. In the workshop you will learn how to navigate and avoid dangerous obstacles while completing the home buying process. You will learn how to assemble your home buying team of professionals to assist you all the way to closing on your home.
In addition to learning industry terminology, you will learn the criteria lenders are using to approve your mortgage application. Most lenders will pre-approve you for about 3-4 times your annual income. They will require a minimum of 2 consecutive years’ employment experience, and a minimum of 24 months clean credit history with at least 3-4 active lines of credit.
You will create your own personal purchasing plan. This will essentially become your roadmap to completing the process. That old adage is true, “If you fail to plan, you plan to fail.” You must have a plan in place using the SMART goals – strategic, measurable, attainable, realistic, and timely. Since this is your personal plan, you can revise it as necessary. It must work for you and your financial situation. Your plan will help you determine your timeframe and when you will become ‘mortgage ready.’
Money management is a huge concern for first-time home buyers. You must exercise extreme caution and care in managing your money and monthly living expenses. So, you will learn that creating a monthly household budget is the primary tool for success in becoming a first-time homeowner.
Your budget will reveal to you three important factors related to homeownership – (1) how much you can save each month. You want to aggressively save as much money as possible. You want to identify and eliminate all wasteful spending; (2) how much you can comfortably afford to spend on a home – this will include monthly mortgage payments, utilities, maintenance or homeowner association fees, and taxes. You must also include in your calculation monthly living expenses such as food, transportation, cell phone, cable, laundry, personal expenses etc.; and (3) how soon you will be ready to buy. You might need to use somewhere between 5-10% of your savings for the downpayment.
You must start now if you are to make homeownership a reality this year. HCCI’s home buyer education workshop seminar series is the best place to start the process. Don’t delay any longer.
For more information on the home buying process contact Rev. Dr. Charles Butler at (212) 281-4887 ext. 231 or email cbutler@hcci.org.
