Buying a home is one of the most significant financial commitments consumers make. The process can seem complicated, but the joys of owning a home changes the lives of people and enhances the communities that make up our cities.
But housing costs have increased faster than incomes, making it difficult for our firemen, nurses, teachers, police officers and retail workers to find safe, quality, affordable housing near their jobs. And in addition to today’s economic and housing recession, there are more families being cautious about buying a home. Many of these first-time homebuyers face much stricter guidelines than those used in recent years. Credit scores, down payments and credit requirements have been increased as lenders tighten access to credit and implement stiffer lending restrictions.
For families who are struggling with credit issues, large amounts of debts or the potential loss of a job, buying a home is a scary situation. Many of these families will be asked to deal with credit, savings and money management before they can enter into the home buying process.
Learning good financial management skills is essential to rebuilding credit and managing debts and an important step before proceeding with a home purchase.
Several non-profit, HUD-certified counseling agencies currently offer financial education in the areas of credit counseling, debt reduction and budgeting. Finding out your credit score is the first step towards buying a home of your own. Paying your bills on time is another aspect of your credit and a good payment history can help lenders decide if you can afford to buy a home.
The North Texas Housing Coalition (NTHC) offers potential homebuyers and anyone interested in repairing their credit to contact creditors and dispute information on their credit report. These homebuyer financial education classes are designed to equip consumers with the tools necessary to purchase a home and access various homeownership programs.
First-time homebuyer workshops are available to help those families and individuals who are interested in purchasing a home learn the ABC's of buying a home by giving them the tools they need before they purchase a home. These workshops empower consumers to take control of their financial situations as well as helping them to better understand their spending habits.
The NTHC offers several first-time homebuyers workshops throughout the year. These eight-week comprehensive workshops feature information on topics such as:
· Renting versus owning
· Budgeting and credit repair (2 week-session)
· How to create a homeownership plan that will work for you
· How to choose the right lender for you
· The mortgage process
· What to do after you purchase a home - how to avoid foreclosure
· Work with a lender, realtor and insurance agent to get results
· Home maintenance and do it yourself repairs
· Resources available from local, state and federal programs to help with home financing
The Homeownership Center, part of the NTHC, is a community resource that provides comprehensive counseling, training and education. It is the place to go for consumers who want to become financially fit, achieve homeownership or prevent foreclosure.
For more information, please visit our website at www.nthcinc.org. Join us on February 20 for the 8-weeks to Homeownership class.
To identify available resources in your community, including a HUD-approved housing counselor, dial 2-1-1 or go online to 211 Texas, the statewide referral network for health and human services.
Albert Martin is the executive director for the North Texas Housing Coalition
The North Texas Housing Coalition is a nonprofit organization comprising more than 300 organizations and individuals working to improve and increase affordable housing in the region.
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