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PRESS RELEASE
Tuesday, June 8, 2010
CCCS of Greater Dallas Recognizes Homeownership Month in June with Free Webinars and Classes on Preparing for Homeownership and Avoiding Foreclosure
Nonprofit Agency Offers Free Education to Consumers Online and In-person
Dallas - June 8, 2010 - Consumer Credit Counseling Service of Greater Dallas (CCCS of Greater Dallas), a nonprofit provider of financial education and a HUD-accredited counseling agency, is educating consumers with a series of free homeownership classes in-person and on the Web. Its popular classes, "So You Want to be a Homeowner" and "How Do I Save My Home from Foreclosure", are now available online throughout the month of June.
CCCS of Greater Dallas' free seminars and webinars teach consumers to take a realistic look at what to expect from homeownership and include details on everything from financial preparation and qualifying for a mortgage, to home inspection and maintenance and avoiding foreclosure. The agency also offers a one-on-one pre-purchase counseling session that reviews the basics of budgeting and credit, as well as understanding how much mortgage is appropriate based on income.
"We've seen a steep rise in requests for housing counseling due to the prolonging real estate crisis and recession," said Todd Mark, vice president of education for CCCS of Greater Dallas. "For those fortunate enough to take advantage of lower home prices and interest rates, we want to make sure they are making a smart purchase to avoid the possibility of their own housing crisis down the road."
Some of the tips from CCCS of Greater Dallas' popular "So You Want to be a Homeowner," include:
Determine the right time for homeownership. 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? There are fewer options available in today's lending environment. Before calling or meeting with real estate professionals or potential lenders, be sure to have all the 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.
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. The higher your score, the better chance you have of getting a lower interest rate.
Be realistic about maintenance and HOA 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, taxes and insurance, as well as costs like utilities and maintenance. Several new homes also require a homeowner association fee that can range anywhere from a couple of hundred to a thousand dollars each year. And don't forget the cost of home furnishings, both indoors and out.
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 that is 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, proximity to retail, restaurants and extracurricular activities. It's good to think about environmental and utility factors, neighborhood and school zones and other non-physical preferences.
Research the neighborhood. To find the right home, check as many leads as possible. Drive through neighborhoods you're interested in to make sure the community keeps up its landscaping and home repairs, etc. It's also smart to look up foreclosures in those neighborhoods. Several foreclosures could affect your future home value. Be sure to look up crime rates as well.
Shop for a mortgage that's best for you. Select a mortgage and loan terms that are most favorable to your financial situation. Banks are lending to only the safest borrowers right now, and fewer types of loans are available. CCCS of Greater Dallas recommends a 30- or 15-year fixed mortgage, but be sure you know the differences in all 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). In today's economy, you might get the best deal from a financial institution where you already have a financial relationship. Remember to limit your mortgage shopping to a two-week period. Several lenders pulling your credit report could show up negatively if you extend the shopping beyond this time period.
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 you 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 www.cccs.net.
For more information on homeownership classes or information on free budget and credit counseling and financial education, visit www.cccs.net or call 1-800-249-2227.
About CCCS of Greater Dallas
Consumer Credit Counseling Service of Greater Dallas, Inc. is a nonprofit, community based credit counseling and debt management service. Established in 1974, CCCS of Greater Dallas and its affiliate offices provide financial education and counseling to consumers in-person, by phone, or Internet at more than 20 locations in four states. CCCS of Greater Dallas is a HUD-approved housing counseling multi-state organization and serves as one of eight counseling agencies supporting the 888-995-HOPE Hotline. The agency is also a member of the National Foundation for Credit Counseling (NFCC), the nation's largest and longest serving national non-profit credit counseling network. To learn more about CCCS of Greater Dallas' free seminars or the agency's services www.cccs.net.
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