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ONLINE WORKSHOP
Getting Started…
Achieving Homeownership
At the end of this workshop, you will understand:
1. Advantages of Homeownership
2. Factors to consider when evaluating your readiness for homeownership
3. How to obtain your credit report
4. How to correct errors that may be on the credit report
5. The homeownership process
6. How to obtain additional information
MAKING THE DECISION
Advantages of Homeownership?
A place of your own
- Financial Incentives
- Equity
- Stable housing costs
- Appreciation
- Tax Benefits
Making the Decision
Possible Drawbacks of Homeownership?
Additional costs
Property taxes, homeowner’s insurance, utilities and upkeep expenses
- Decreased mobility
- Possibility of foreclosure
- Repairs and maintenance
Making the Decision
Qualifying for a Mortgage
Have you?
- Maintained a steady job history and income?
- Paid your bills on time?
- Established a credit record?
- Saved money for a down payment?
- Limited your outstanding debt?
Making the Decision
Costs to be paid when buying a home:
- Upfront Costs
- Down payment
- Closing costs
- Escrow and prepaid
- Settling in costs
- Appraisal
- Credit report
- Loan approval fees
- Inspections
Ongoing Costs
- Monthly mortgage payment: PITI (Principal, interest, taxes and insurance)
- Utilities and maintenance costs
Making the Decision
Factors the Lender will consider:
- Capital
- Money available for upfront costs
- Capacity
- Pay monthly mortgage payment and other bills
- Income
- Employment history
- Credit History
- Past credit, credit report, and credit scores
- Collateral
- Appraised value for condition of the house you are buying
Making the Decision
How Much House Can I Afford?
- Pre-qualification
- Estimated amount of money the lender will let you borrow
- Price of the house you should shop for
- Based on estimated loan amount
- How much down payment you will need
- Amount of your monthly payments
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