1. Developing A Plan For Homeownership

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Thomas J. Fox

Community Outreach Director at Cambridge Credit Counseling Corp.

3. AFCPE Accredited Financial Counselor 4. IFL Certified Educator in Personal Finance 5. NCHECCertified Housing Counselor 6. Radio Talk Show Host,Money AmericaThe Republican Newspaper (MA), By William Burke, April 27, 2009
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7. Having The Right Mindset
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Is your employer and your position within the company reliable?
How is your credit?
Have you saved for a down payment?
8. Homeownership Done Right
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Owning a home provides not only a place to raise your family and call your own, but an investment in your future.
Preparing to take on the American dream often comes with work and sacrifice, but the advantages can outweigh the disadvantages.
Do it right by researching and knowing exactly what youre getting into before buying a home.
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Overcoming Homeownership Learning Barriers
Financial Problems
Time Issues
Negative Perceptions
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10. Resources For Getting Started
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Own It, Keep It! (ownitkeepit.org)
Connecticut Association of Realtors (ctrealtor.com)
HUD Certified Housing Counseling (hud.gov)
Connecticut Housing Finance Authority (chfa.org)
The United Ways 211 (infoline.org)
11. Advantages
Disadvantages
Stable Housing Costs
Tax Benefits
Equity
Control Over Your Environment
Stability
Monthly Costs
No Guarantees
Maintenance and Repairs
Decreased Mobility
Fewer Features Included
Things To Consider About Homeownership
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12. The people you will encounter on your way to owning, and keeping, your home
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Who You Will Work With
13. Housing Counselor
Trained to assist prospective buyers and homeowners on variety of homeownership issues. Provide educational classes or one-on-one sessions to educate individuals on how to become homeowners and maintain homeownership.
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Real Estate Agent
There are different types of agents you must be aware of.First there is the listing agent who has a contract with the seller of the home to represent the sellers best interests . A buyer's agent works for the purchaser.They're also agentswho work with both the buyer and the seller, this is referred to as dual agency and is prohibited in some states.
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15. Home Inspector
Individual who validates the structure and mechanical aspects of a property.The inspector details his findings in a report discussing major areas of concern.
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Lender
Lenders are banks, savings associations, credit unions, mortgage companies and brokers, governmental agencies and other institutions who lend money to homebuyers in need of financial assistance in securing property.
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17. Appraiser
Appraiser is hired by the mortgage lender to estimate the value of the property to be financed.The appraiser works to determine the fair market value of the house by comparing it with similar onessold in the community.
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Insurance Agent
When financing a home, most lenders will require the homeowner to secure insurance on the property.Your insurance professional will be able to advise you on the proper coverage for your home.
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19. Attorney
Attorneys specializing in real estate law provide invaluable advice regarding your homeownership options.These individuals can be especially helpful in the creation of real estate contracts, title searches and the closing process.
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20. The costs of Homeownership
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Financial Aspects of Homeownership
21. Individual
Household
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How Much Home Can You Afford?
22. Importance Of A Plan
The most important financial step an individual can take!
Directed by goals and financial resources.
Reviewing spending habits ensures youre on the right path to achieve your goals.
Provides direction as you manage all aspects of your finances -- spending, credit, savings, and investments.
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23. Gross Income
$1312 Gross Income
Gross income represents a persons income before taxes and other deductions are taken out.
Does not offer a true representation of your finances.
Net incomerepresents the money you actually control.
Gross Vs. Net Income
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24. Ordering Your Credit Reports
Online: www.annualcreditreport.com
Telephone: 877-322-8228
Mail: Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Your must download form from www.ftc.gov/credit
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25. Check Your Credit Reports
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26. Dealing with foreclosure
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Keeping Your Home
27. What Happens With Foreclosure?
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When a homeowner loses the ability to make ongoing mortgage payments, the lender can legally take ownership of the home
Lender can sell the property to cover the outstanding debt
In some states lenders can pursue a deficiency judgment if the home is worth less than the amount owed
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What Are Types Of Foreclosure?
Judicial foreclosure involves a court action
Non-judicial foreclosure can be completed outside the court system, however the lender is unable to get a deficiency judgment.
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29. Avoiding Foreclosure
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Foreclosure prevention counseling services are provided free of charge by nonprofit housing counseling agencies
These agencies are funded, in part, by HUD and NeighborWorks America. There is no need to pay a private company for these services

HUD-approved housing counseling agencies are available to provide you with the information and assistance you need to avoid foreclosure
If you are eligible for the loan modification or refinance program, the counselor will work with you and your servicer.
30. There Is Help, But You Have To Ask!
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Many people avoid calling their lender when they have money troubles.
Foreclosure is expensive for lenders, mortgage insurers and investors.
HUD/FHA, as well as private mortgage insurance companies and investors like Freddie Mac and Fannie Mae, require lenders to work with borrowers.
31. Workout Programs
Lenders have workout options to help homeowners; however, these options work best when the loan is only one or two payments behind.
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32. Questions?
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