Categories: Rev. Dr. Charles Butler,
For several years I have asked the question, “Where are the affordable properties in Harlem?” Our local politicians, financial service institutions, and community developers have not satisfactorily answered this question. They all seem to afford the issue and offer the same response; the housing market is complex, but it is possible provided you have adequate income, good credit, and adequate savings. So, on paper, at least it appears that homeownership is attainable but still only for middle to upper incomes households.
But meeting these criteria for the low to moderate prospective buyers is an insurmountable challenge. Although this challenge is not impossible, the reality is that it will be very difficult to complete the home buying process. The market value of homes in Harlem will alone bear out this fact and, coupled with the current interest rates the task of completing the homeownership process becomes more undaunting.
For those of you who have been trying to purchase a home this year but could not complete the process, now you realize just how difficult it can be to buy a home in Harlem. The home buying process is nerve racking. It can be extremely emotionally as well as financially draining and very time-consuming. But I encourage despite these challenges do not to give up, do not throw in the towel and quit. You must continue to push hard to achieve your dream of homeownership. You can make it a reality.
Now that you have a better understanding of the amount of money required to successfully complete the home buying process, your primary goal is to increase your income and your monthly savings. Start now by making changes in your spending habits. Create a monthly household budget to identify any wasteful spending. Each month you want to aggressively save as much money as possible. Save your change at the end of each day. Challenge yourself to increase your savings goal.
At the same time, strive to maintain a strong credit history. Keep your account balances at or below 30% of the credit limit. Pay your bills on time to avoid late fees. Open new accounts only as needed. Never close any existing accounts because that will have an adverse impact on your credit history. Most mortgage lenders will want to see 3-4 active credit accounts with at least 24 months’ clean credit history. However, a State of New York Mortgage Agency (SONYMA) loan will require only a 12 month credit history and one year employment history.
The important thing is to stay focused on completing the home buying process. Buying a home in Harlem can be accomplished, but it will take making some personal sacrifices. However, if you have the desire, discipline, determination, and dedication; you can do it.
If you are interested in attending the workshop or have questions regarding the home buying process, contact Rev. Dr. Charles Butler at (212) 281 4887 ext. 231or email at cbutler@hcci.org.
