Preparation is the most important step in the home buying process. Are you ready to purchase a home? Consider the advantages and disadvantages of purchasing a home. Assess your readiness. Go over your budget, or create one if you don’t have one. Determine how much you can afford to pay monthly. How is your credit? If you have not done so, get a copy of your credit report. If there are errors, contact the credit bureaus to correct them. Do you have large debts or collections to resolve before applying for a loan? If so, contact a credit counselor to get advice and create a plan. Attend a homeownership education seminar to learn about the process.
After you complete Step 1, contact the Affordable Housing Clearinghouse to see what you qualify for. Have readily available your gross household income, a list of your monthly debt payments, and how much cash you have to contribute toward your home purchase. It is extremely important that we have accurate information so that we can tell you which programs you are eligible for and what purchase price you can qualify for. After you are prequalified, you can do some research to see what homes are available in your price range.
After you have researched available homes in your prequalification price range, and you have decided to move forward with the process, then you need to get pre-approved. This means that you need to submit a full loan application, and we will run your credit. Because this step happens before you make an offer to purchase a property, you can leave the property section of the application blank. It is not necessary to get pre-approved until you are ready to shop for a home. You will receive an approval with conditions.
The same loan application is used for all programs. Loan applications may be submitted in person or by delivery. For your protection, we suggest that applications be sent using a method that allows for tracking of the delivery.
Once you receive a conditional approval, you can work with a real estate agent to find a home to purchase. If you find a home you would like to purchase, work with your agent to submit an offer. After your offer is accepted, call the Affordable Housing Clearinghouse to let us know, and we will let you know what we need to continue processing the loan for final approval.
There are several advantages to homeownership, but there are also some disadvantages. Review some of the pros and cons below to decide whether homeownership is right for you.
|Equity Investment||Mortgage Debt|
|Tax Deductibility of Interest Payments||Market Risk|
|Tax Deductibility of Property Tax Payments||Property Tax|
|Stable Housing Costs||High Cost of Homeownership|
|Freedom and Control||Decreased Mobility|
|Repairs and Maintenance|
Affordable Housing Clearinghouse is a non-profit organization that provides financing for affordable housing and homeownership.