High Plains CDC’s approved housing counseling center offers services to help first time
homebuyers:
* Homebuyer Education
-an educational workshop designed for anyone considering buying a home.
-Topics to be discussed
-Class schedules vary. Please contact Janelle Polet at 308.432.4346 ext. 8
Budgeting and good credit are the first steps towards homeownership. Many times credit and debt need some attention before talking to a lender or
house hunting.
This could mean the difference in thousands of dollars paid to a higher interest
rate.
Learn how to improve your score, dispute inaccurate information, and develop a
realistic payment plan.
High Plains provides free counseling and offers a credit report review. Anyone can access a free credit report at 1.877.322.8228 or online at www.annualcreditreport.com. High Plains can pull your credit report and score for only $23.50, the cost of
the report from the three bureaus.
Buying a home is the largest investment most families ever make. There are many great reasons to own a home:
* You’ll have a place that is yours! - You’ll own it, have a place to raise your children and become a part of your
community. You can pass your home down to your children, and their children, creating
security for generations to come.
* You may pay less to own a home than you would to rent - and it’s yours at the end! - Homeownership can reduce
the federal income taxes you pay. You can deduct the interest on your mortgage and property taxes that you pay on
your
home on the tax returns you file each year. These savings partially reduce, or offset somewhat the actual cost of
owning your home.
* Your monthly payments won’t ever go up if you choose a fixed-rate mortgage! - If you choose a mortgage with a
fixed-interest rate (one that stays the same for the life of the loan, say 30
years), you
’ll pay the same mortgage payment
each month for the entire 30 years of the loan.
* You build a good nest egg! - Owning a home is the single greatest source of financial security and
independence for the
majority of people who have taken this step.
What is predatory lending? Predatory lending can be many things:
* Selling property for more than it is worth using false appraisals.
* Encouraging borrowers to lie about income, expenses, or cash available for
down payments in order to get a loan.
* Knowingly lending more money than a borrower can afford to repay.
* Charging higher interest rates to borrowers based on their race or national
origin and not on their credit history.
* Charging fees for unnecessary or nonexistent products and services.
* Pressuring borrowers to accept higher-risk loans such as balloon loans,
interest only payments, and steep
pre-payment penalties.
* The loan officer or lender intentionally puts the borrower into a loan with
worse terms or higher cost than similarly
qualified borrowers.
It’s a good idea to have an inspection before you sign a written offer, because
once the sale is finalized you have bought the home as is.
A home inspector checks the condition and safety of your potential new home. Generally, an inspector checks: structure, construction, mechanical systems,
electrical systems, plumbing, waste disposal, water heater, insulation,
ventilation, foundation, doors, windows, ceilings, walls, floors, and the roof.
High Plains has a Certified Home Inspector on staff and can provide a home
inspection for an affordable fee.
First get your loan Pre-Approved - Most homebuyers have their first contact with a lender before they start
looking for a
house to find out how much they can afford to spend. Once you find the right product, visit a lender and get pre-approved.
Prequalification is the process lenders use to calculate how much mortgage you
can afford, based on unverified
information. It is not a guarantee. Pre-approval guarantees that the lender will loan you a certain amount of money
for
which you are qualified. There may be a fee for a pre-approval, but it helps you shop with confidence.
Apply for a mortgage - Once the seller has accepted your offer and you have a satisfactory home
inspection, you should
apply for a mortgage loan. Once you decide on a lender, you will complete a formal loan application at the
lender
’s office.
The lender takes your application; your request for credit is processed and
underwritten.
Comparing and examining many homes on the market. Most people shop for homes working with a real estate agent. It is important to find a home that fits your need and budget. Your agent can also protect you throughout the sale by explaining all the steps
in the purchase process.
Once you narrow your choices to a few houses, take a closer look.
Between the time the seller accepts your offer and the time the sale closes,
your contract is in escrow.
Many things happen in escrow to close the sale by the date agreed to in the
contract.
You will have to complete some tasks and the professionals you hire will help
you complete others.
You will have to obtain homeowners insurance and the lender will order an
appraisal.
Also during escrow, a title company or attorney will conduct a title search to
verify proof of ownership of the property you are buying.
A title insurance policy will be issued to protect the lender against defects in
the title.
* Title Insurance Officer: Title is another word for ownership of property. The title insurance officer works for a title
insurance company that sells insurance to guarantee that the title report is
accurate and that you can rely on it.
This
officer will research the chain of title and give you a history of who owned
your home so you can be sure that the
person selling you the house really has the right. They also research public records and issues a title report that
shows the ownership. Title insurance protects the lender and owner if there is an error in the title
report.
* Homeowners Insurance Agent: The agent will insure your home to protect it from casuality and liability. This should
be for the replacement value, the cost to actually rebuild and replace your new
home and its contents.
The closing or settlement is the date on which the seller receives the check and
the buyer receives the deed to their property.
In some areas, the closing is a formal meeting in which both the buyer and
seller sign the many papers that are required for sale.
Generally, the seller moves out and turns the keys over to the buyer on the
closing day.
Housing Counseling provides a one day class designed to offer new homeowners an
opportunity to learn skills to better manage their most important asset - their
home.
By the end of this one day class you should be able to:
* Develop knowledge, understanding, and skills to improve financial management.
* Understand how your involvement in your community can enhance your investment.
* Learn how to avoid predatory lenders, when and if to refinance, and how to
avoid foreclosure on your home,
should that become a real threat.
Foreclosure is a legal term and action taken by your mortgage lender to
repossess your home.
This can happen if you fall behind in your payments and do not work out a plan
with your lender to restore the delinquent payments.
There are alternatives to foreclosure, to explore your options contact us.
Are you interested in purchasing a home, but do not have the funds for down
payment and closing costs?
If you are thinking of living in Box Butte, Dawes, Sheridan, or Sioux Counties,
you are a first time homebuyer, and
purchasing a home, not a duplex or condo, you may qualify for up to $3,200 in
closing cost assistance through a
High Plains Community Development grant.
Guidelines are available by contacting Janelle Polet 308.432.4346 ext 8 or Rita
Horse 308.432.4346 ext 1
130 E. Second St. Chadron, NE 69337
Phone: 308.432.4346 or toll free 1.866.432.4346
Fax: 308.432.4655
Quick Facts about Reverse Mortgages:
* All borrowers must be 62 years of age or older
* Borrowers retain ownership and must occupy the home
* No monthly mortgage payments
* Repayment is not made until the home is sold, the last borrower moves out or
passes away
* You will never owe more than the fair market value of your home at the time
the loan comes due
* No income qualification
* Interest is paid at the time the loan is paid
* When the loan is due, your heirs have choices
* Social Security benefits and Medicare are generally not affected by a Reverse
Mortgage
* Closing costs and fees incurred can be financed as part of the loan
If you would like to learn more or have other questions please call Rita Horse
at 308.432.4346 ext. 1 or 866.432.4346 ext. 1
