Home Buying in Harlem Be Prepared to Buy Now By Rev. Dr. Charles Butler

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Home Buying in Harlem
Be Prepared to Buy Now
By Rev. Dr. Charles Butler

This home buying process is not for the faint of heart. You cannot be timid if you want to achieve your goal of becoming a first-time homeowner.
You must be confident in knowing you can successfully reach your goal. You must have an aggressive mindset when submitting an offer on a prospective property. Refrain from becoming intimated by the rising home values. Just understand it will take determination and a strong desire if you are going to complete the home buying process in this highly competitive market successfully.

A profile of my successful home buyers can provide you with a key to what will be required from you: (1) They had adequate savings. This should not come as a surprise. Depending on what type of property you are buying, you will need approximately $25 -35K or more for the down payment and closing costs.

You must have the personal discipline to eliminate all wasteful spending. Stick to your budget; this is your primary tool in the home buying process. Review your budget to determine what expenses can be either eliminated or reduced. Prepare to make some financial sacrifices. For example, consider taking a 2- or 3-day vacation rather than two weeks.

They also had a stable and solid source of income. This is now extremely important because most banks only lend about 3 – 4 times your annual income. So, the more money you
make, the more you will be able to afford. However, for low to moderate-income buyers, you may have to put an even larger amount down, in some cases 30-40% of the purchase price!

(2) They had a solid credit history. In today’s market, very few lenders will offer you a mortgage with a weak credit score. Most banks require a minimum score of 680 or higher. Remember, the higher your score, the better interest rate you will be able to get.
As you prepare for homeownership, continue using your credit wisely. If you have high outstanding credit balances, this can severely reduce your loan amount. Your bank will calculate your debt-to-income ratio (DTI) and usually, both your housing and monthly minimum credit debt cannot exceed 43% of your monthly gross income.

(3) They had a trusted and experienced team of professionals assisting them through the process. Start assembling your team to work with you. Take your time getting referrals from friends and your housing counselor. Put together a solid plan of action and stick to it. That old adage is true; if you fail to plan, you plan to fail. You must create a detailed personal purchasing plan outlining your strategy for moving through each step of the home buying process. Start by attending a home buyer workshop.

If you are interested in attending a 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.



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