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Press Release
Wednesday, June 20, 2007
CCCS of Greater Dallas Marks June as National Homeownership Month
Dallas - June 19, 2007 Recognizing that with some careful planning, realistic goal-setting and a clear understanding of the costs involved, homeownership can be an achievable dream for tens of thousands of Americans. Consumer Credit Counseling Service of Greater Dallas (CCCS Dallas) is marking June as Homeownership Month by helping consumers to take a realistic look at what to expect from homeownership.
"CCCS is dedicated to providing quality education to consumers. Through our free homeownership classes in each of our office locations, individuals are fully prepared to buy a home without getting taken advantage of. We educate individuals on the basics of homeownership so that we can prevent that from happening," said Ray Hooper, housing director for CCCS Dallas.
Everyday, CCCS Dallas helps homebuyers navigate the overwhelming amount of available information so the home-buying process isn't stressful or intimidating. Through educational classes and literature, CCCS Dallas can help take out the guesswork by educating and preparing Americans to achieve the dream of owning a home.
To that end, CCCS Dallas suggests the following tips for potential homebuyers when exploring homeownership opportunities:
Determine the right time for homeownership. If you know you want to own a home, whether it's today or in a few years, you first should determine if you can afford to buy a home and what kind of home. How much money will you be able to borrow? What types of mortgages are available and which mortgage is best for you? Before calling or meeting with real estate professionals or potential lenders, be sure to have these answers to these questions.
Analyze how much money you have saved. There will be up-front costs associated with buying a home, such as a down payment, home inspection, appraisal, and closing costs that can range from three to six percent of the cost of the house. Don't forget additional costs such as movers and/or repairs.
Be realistic about increased maintenance costs. Compare your current expenses to the ongoing costs of a home purchase. How does your current rent or mortgage compare to the new monthly mortgage payment? Don't forget that if you're now renting, with home ownership you acquire taxes and insurance, as well as costs like utilities and maintenance. It is likely that you'll need more furnishings, both indoors and out. And once you're the proud owner, responsibilities such as plumbing and roofing fall to you.
Examine your credit report and credit score. Before shopping for the dream house or meeting with the mortgage lender, obtain a free copy of your credit report at www.annualcreditreport.com or by calling (877) 322-8228. Your credit report is used extensively by potential lenders to evaluate your credit worthiness. Your credit score can impact your interest rate and costs for other items such as homeowner's insurance and private mortgage insurance. Often times the higher your score, the better chance you have of getting a lower interest rate.
Decide what type of home you want. Not everyone wants the white picket fence. Prior to house shopping, a prepared homebuyer will develop a checklist of "must have" versus "would like" features to compare properties. When creating the checklist, consider the following: how much space your family needs; the style and layout you prefer; a specific part of the city more convenient for your lifestyle; and what amenities are "must haves" such as a garage, large backyard, appliances, etc. Also consider distance from work and family, environmental and utility factors, neighborhood and school zones and other non-physical preferences.
Do some "window shopping." To find the right home, check as many leads as possible. Let your friends and acquaintances know you are looking to buy. Drive through neighborhoods and check out the "for sale" signs and then look them up on the Internet. Newspapers and shoppers' guides are full of listings.
Shop for a mortgage that's best for you. Select a mortgage and loan terms that are most favorable to your financial situation. Mortgages are available from a number of sources including savings and loan associations, commercial banks, mortgage companies, federal credit unions and financial companies. Research the many types of mortgages including fixed-rate, adjustable-rate mortgage (ARM) and federal government-insured loans from the Federal Housing Administration (FHA), Department of Veterans Affairs (VA) and Rural Housing Service (RHA). Shop around for the best deal, which may begin with a financial institution where you already have a financial relationship, such as a checking or savings account, or from friends, family, co-workers and real estate professionals.
Be prepared for your first meeting with a lender. To save time, gather the following items in advance of your meeting: bank information such as account number, branch address, latest bank statement; pay stubs, W2 forms for the past two years, or other proof of employment and salary; information about debts, including loan and credit card numbers and creditor contact information; and evidence of mortgage or rental payments such as canceled checks or money order receipts. If you are self-employed, collect balance sheets, tax returns for the past two years and a year-to-date profit and loss statement.
Sign up for a free or low-cost homeownership session. To find out if homeownership is right for you, determine how much home you can get with your money, what mortgage lenders look for in approving a loan, and how first-time homebuyers and low- and moderate-income households can stretch your borrowing power. Owning a home can be within reach for educated homebuyers. For more information about becoming a homeowner, call CCCS Dallas at (800) 249-2227 or visit www.cccs.net.
About CCCS of Greater Dallas
Consumer Credit Counseling Service of Greater Dallas, Inc.(CCCS Dallas) is a non-profit, community based credit and debt management service. Established in 1974, CCCS Dallas and its affiliate offices provide financial education and counseling to consumers in-person, by phone, or Internet through their 24 locations in four states. CCCS Dallas is a member of the National Foundation for Credit Counseling (NFCC), the nation's largest and longest serving national non-profit credit counseling network. For more information, visit www.cccs.net.
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