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What is on my credit report? Before agreeing to lend money for a home, a Homeownership Counselor will review your credit report to see whether you pay your other bills and loans on time. You can obtain one free copy of your credit report by calling 1-800-288-7408 or writing to:
Do I have a steady job that I can count on? Most lenders require you to have been employed continuously for at least two years. Do I have any major expenditures I need to make in the next few years? You will need to weigh how other major expenditures, such as a new car or college tuition, will affect your ability to manage a house payment and upkeep expenses. Can I count on staying in the area during the next five years? Owning a home decreases your mobility since, unlike renters, you cannot simply give notice to the landlord and move. If you sell your home within the first five years, you may lose the money that you have invested in it. It makes sense to evaluate whether your employer, future job opportunities, and personal needs are likely to keep you in the area for at least the next five years. Am I committed to preparing and following a budget? Because homeowners must pay property taxes, homeowners' insurance, utilities, and upkeep expenses, you can expect to pay more for housing costs when you buy a home. Homeowners need to develop a budget and stick to it, or risk losing the asset they worked so hard to obtain. |