By Rachael Vancanti, Contributor
Some of the most important things in buying a home are location, good credit, and understanding the process. Mav PRSSA partnered with NeighborWorks Home Solutions to discuss the process of college home-buying with a panel of three experts on Monday.
While this seems like a very daunting task, it can be a very rewarding investment in the long run. Buying a home is important to college students because the younger you are when you purchase a home, the easier it will be to pay it off.
The NeighborWorks Home Solutions panel consisted of: Joe Kueper, President of NeighborWorks Home Solutions, Jennifer Debelin, a mortgage loan originator of American National Bank, and Paula Danker of Heartland Properties, Inc.
NeighborWorks Home Solutions is a national organization, with 250 subsidiaries whose goal is to both make housing affordable, and help people with opportunities to have different housing. The focus group is on anyone whose income is less than 80 percent of the median income, which for a single person is $40,900.
NeighborWorks Home Solutions also work with different neighborhoods. “We work with neighborhood groups who want to improve their surroundings,” Kueper said.
Buying a home is not an easy process, though it can be a fun one. First you should have an initial meeting with a realtor where they sit down with you and explain everything in the process about buying a home. Next you meet with a mortgage lender to review the buying process.
Then comes the fun part: looking at homes. This can range from disastrous to complete fun. Create a list of what you cannot live without, what would be nice to have, and things you absolutely do not want. Look at different neighborhoods. Thanks to the internet, you can now pull up crime statistics on virtually any neighborhood.
Upon deciding to make an offer, the seller has three options: accept it, counter it, or reject it. Simple enough, but when you are waiting it feels like time drags on and on.
Next you have to go through the loan processing and approval. There is a trick to this: have good credit. Get a credit card in college and use it for emergencies. Start building your credit score early. Pay off your balance each month. While you are waiting for your loan, don’t make any big purchases, because it can affect your credit score.
After the loan is approved, the first thing you should do is buy homeowners insurance. You’re putting all this time and effort into buying a house, you should probably invest in some insurance to keep it safe.
Once you pay the closing cost, and the realtor for helping you out through the process, you can actually own the home. When paying your mortgage every month, in the beginning try and pay off more than the required amount. That way you can turn a 30-year loan into something smaller than 30 years.
People are there to help every step of the way, and no question is a stupid question. There are people whose job it is to make sure you understand what you are doing.