Categories: Rev. Dr. Charles Butler,
The question that remains in the hearts and minds of many prospective first-time home buyers is can they afford to buy a home in Harlem? I have been pondering over this question for several months now. I have yet to find an acceptable answer. I have asked local politicians, members from financial institutions, and community developers. They all have a similar response; the housing market is difficult, but not impossible. You must have an adequate income, good credit, and substantial savings. So, it does appear that homeownership is reserved for buyers with middle to upper incomes.
However, for many low- to-moderate first-time buyers these requirements will provide an enormous challenge. These facts, coupled with the current market value of homes in Harlem and the competitive but yet slightly higher interest rates we are experiencing make the task of homeownership becomes more undaunting. But with faith and perseverance you can still successfully complete the home buying process.
For those of you who have been trying to purchase a home for years but up to now could not complete the process, now you realize how difficult it is to buy a home in Harlem. Indeed, 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 give up, do not throw in the towel and quit. Make it your goal to achieve your dream of homeownership this year.
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. Push yourself to increase your savings goal.
Also, you must maintain a healthy credit history. Keep your account balances at or below 35% of the credit limit. Pay your bills on time. 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 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 a great deal of hard work. 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.
