Interfaith Housing Alliance has a fantastic program called Purchase-Repair Homeownership. The program provides affordable homeownership opportunities to families and individuals that wouldn’t otherwise qualify for a traditional mortgage. Do you fit within that category? Do you feel you are ready to take the steps to homeownership? Please reach out to Carol Riggles at 301-662-4225 to gather more information and set up an appointment with her to discuss how IHA can help you achieve your dream!
In the meantime, there are steps you could be taking to be more successful in the home buying process! Maryland SmartBuy is a popular homeownership program which provides a lot of great tips so individuals can be more successful in the process.
To make a successful contract offer when you find your home, you will need to be prepared to move quickly. Having your finances in order could make the difference in submitting a successful contract offer.
Here are some suggestions to follow to put your financial affairs in order:
Set a budget. Numerous mortgage calculators can help you factor what your monthly payment will be for principal and interest; however, be sure you factor in real estate taxes, homeowners insurance, and mortgage insurance, if applicable. These costs are paid into an escrow account and distributed by your lender. That total will be your monthly payment, and is what you should build your monthly budget around. Best practice: If you are not currently paying rent, start putting that mortgage payment amount aside monthly
Build your savings. From the moment, you begin to think about buying a house—preferably sooner—start saving money. It will help not only with closing costs and other costs associated with buying a home, but with those unexpected costs that always seem come up along the way. And if they don’t come up, you’ll have additional money in your pocket for a bigger down payment\
Pay off small debts. Paying off credit card debts, car loans, and other monthly installments can make a positive difference in your credit score, which will help dramatically when you seek approval for a mortgage loan. If you can’t pay them off, make sure you pay them on time and consistently. Different lenders may have different criterion, but all will look at your financial and payment history
Get pre-approved. Having a lender review your financial documents, income, and other factors will help you understand how much home you can afford. Having pre-approval for financing also helps sellers evaluate how likely you will be able to execute the offer you have made to buy a home, and thereby their willingness to accept your offer
Take a homebuyer education class. The Maryland Mortgage Program requires loan applicants to have take a homebuyer education course, and lists providers of such courses in each county in the state. Take the course early in the process of your search for a home, so it can help you evaluate homes you are considering for purchase.
For more information please visit: mmp.maryland.gov