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Categories: Rev. Dr. Charles Butler,
If current economic predictions are accurate, home values and interest rates will remain high for the upcoming year. This is great news for homeowners looking to sell, but extremely bad news for prospective first-time buyers. The question remains the same: can anyone afford to buy a home in Harlem?
The answer is yes. Homeowner, you must be financially prepared by having an adequate amount of money saved for the down payment and closing costs. You must also have a strong credit history with at least 3-4 active accounts and no delinquencies over the last two years. Most lenders will want you to have a minimum of two years of consistent work experience in the same occupation. Yes, this may seem like an impossible task, but if you have the desire, discipline, and determination, homeownership is definitely attainable.
The first step in the home buying process is to attend an approved housing counseling program. Harlem Congregations for Community Improvement, Inc. (HCCI) offers a free monthly virtual seminar series. The program meets on Thursday evenings from 7–9:30 pm. To register, go to our website – www.hcci.org – at the top of the homepage, click on the tab for programs and services, and then home buyer education. Once you complete the registration form, you will receive an auto-response email confirmation and a link for the workshop. We have an open enrollment policy, which allows you to start at any point in the cycle.
The workshop is designed to help you understand the steps in the home-buying process, how to assemble your home buying team of professionals to assist you through the process, and provide you with the terminology used in the industry.You will learn to calculate your debt-to-income ratio (DTI), the various mortgage products, FHA, SONYMA, Conventional, and Veterans. The workshop will provide you with websites to use in conducting research on potential properties. You will learn how to negotiate an offer and learn about the different types of properties, from single to multi-family homes to cooperative and condominium units.
Start now by creating a monthly household budget. This is the primary tool that will help you with this calculation. The bank will determine your pre-approval amount based on your gross monthly income, but your budget is based on net income. Your other monthly living expenses will also have to be factored into the equation. These are crucial steps in the home buying process because you want to ensure that you can meet your monthly mortgage obligation and these other expenses.
Your budget is the primary tool in the home buying process; it will tell you how much you can save, how much you can afford, and how soon you can buy. This again emphasizes the importance of saving as much money as possible to buy in Harlem successfully.
For more information on the home buying process, contact Rev. Dr. Charles Butler at (212) 281-4887 ext. 231 or email cbutler@hcci.org.
