Are you a First Time Home Buyer ready to purchase your new home? If so, congratulations, you have made the first step by reading this blog. My name is Jenny Lopez-Martinez and I am a Financial and Housing Coach for Easter Seals Greater Houston. I would like to invite you to our virtual Homebuyers Education Classes where you will learn the tools needed to become a homeowner. We will discuss various ways to budget; every participant will receive a budget sheet at the end of session 1. The budget sheet is a tool used to help participants create and reach their financial goal. The class will also discuss the importance of having a savings especially if you are buying a home. The class will introduce the steps on how to pull your credit report, review your credit report and rebuild your credit. We will also review the mortgage loans products, the down payment assistance programs, and every participant will receive additional resources from Freddie Mac. This is a U.S. Department of Housing and Urban Development (HUD) approve course and open to anyone who is ready to buy their first home. Since the classes are virtual, we are providing the classes in session 1 and session 2. At the end of session 2 or once both classes are completed, you will receive a certificate for your participation. We welcome you to learn more about and participate in our upcoming Homebuyer Education Classes.
Tag Archives: Home Owner
Set any New Year’s Resolutions to help build and maintain better credit? We can help! Take advantage of our webinar series with Easterseals and Freddie Mac – build and maintain better credit, and prepare for successful long-term home ownership!
Did you know that Veterans are more likely to have credit card challenges? We meet countless Veterans and military families facing difficult situations, which is why we’ve created more resources and options for military members looking to achieve financial wellness. Check out our video series below!
Over 3 years ago, Heather packed up her 2 young daughters Zoe then 6 weeks old and Riley 2, left an abusive relationship and everything that didn’t fit in her car and began a search for a home to raise her family. After living in a succession of marginal rental situations – at one point living out of her car, Heather and her two young daughters moved in to their 3-bedroom home, close to family and work, and in the preferred school district.
It had not been easy, but Heather was determined and was quick to point out that it could not have been possible without the support of a team of housing professionals.
In January, she submitted an application to a housing counselor with Easter Seals Greater Houston for $14,500 of down payment assistance through the Montgomery County HOME Fund program and was approved.
With the down payment assured, she began working with Terry with Storehouse Mortgage to qualify for the mortgage loan. Their budget was tight as she began paying down debt and building assets, but as Heather remarked, both Riley and Zoe understood that finding a permanent home was important and they all came together as a family to make it happen.
Heather began working with her realtor, Mike with Realty Solutions to find a property suitable for her family, proving to be a challenge. Homes in her price range of $135,000 – 185,000 are the fastest to sell, and home-buyers like Heather even with committed financing must compete with cash buyers purchasing properties within the same day of listing. Over the next several months, Mike presented multiple offers on homes with no success. Finally in March Heather’s contract on a home was accepted, beating out eight other offers made the same day of listing. She would move from a ‘trailer’ home in an unsafe neighborhood for a home in a beautiful family-friendly neighborhood, with a mortgage payment $200+ less than her rent payment. She pointed out that even her utility bills in the new home have been $200+ less.
The transition from renter to homeowner for families like Heather’s could not be possible without the support of Easter Seals Greater Houston and their Financial Literacy, Home Buyers Education, FinTech and Case Management programming.
On the local level, housing professionals such as lenders and realtors like Terry and Mike, and the Easter Seals HUD-certified housing counselors work to ensure that families like Heather’s secure sustainable mortgage products with all the financial support available. County agencies such as Montgomery County Community Development provide a number of programs such as the down payment assistance to help home-buyers purchase their first home.
On the macro level, NSEs such as our partner, Freddie Mac help people in the military, veteran and care-giving communities, as well as those with disabilities, obtain affordable housing through renting or buying a home. They also constantly search for innovative ways to support affordable housing opportunities, such as their webinar series and other online resources.
It has been quite a journey for Heather and her daughters, but as she looks around her home, you can see the pride in her eyes at what they have accomplished. Now she would be proud for her children to invite friends over for sleepovers, and they can walk safely to the neighborhood park for birthday parties.
As Heather looked around her home filled with toys and the backyard filled with swings and wading pool, she remarked, “This feels like home.”
Katy Thorstenberg, Easter Seals Greater Houston, Housing Coordinator
Clients attending Easter Seals Greater Houston’s Homebuyer Education Classes often ask what is the key to success in purchasing a home. As part of our curriculum, we go over the importance of credit, manageable debt, and household assets, but perhaps the answer is much more simple – PERSEVERANCE!!!
A few weeks ago, a single mother of six young daughters purchased a home in Montgomery County – her first home- after over a year and a half of working hard to improve her credit, paying down her debts, and increasing assets. This hardworking mother, Ashlee, took on a second job as a home health professional and began building up a savings account towards a down payment. On April 30, at 5:00 pm, she signed the closing disclosure, collected her keys, and walked out of closing as a homeowner. At times, her goal had seemed impossible, but she persevered and now she lives down the street from one of her clients and they are now making this house their HOME.
Katy Thorstenberg, Home of Your Own Montgomery County Home Fund Program, Easter Seals Greater Houston
If the headlines are to be believed, it’s been a tough few years for the first-time homebuyer. Reports circulate of homes listed in the morning and under contract by the evening. Interest rates are inching up, credit scores are tightening, and those pesky student loans mixed in with car loans and credit card debt are creating a debt-burdened buyer with little wiggle room to take on an additional mortgage.
Yet despite the unfriendly market, attendees of our Down Payment Assistance Workshop given by Easter Seals Greater Houston in The Woodlands, continue to realize their homeownership goals. As class settles in Saturday mornings, and we begin to discuss available down payment assistance programs, the conversation around the table always seem to return to two main concerns: where am I going to get the money for down payment, and how do I dare add a mortgage payment to my already hefty debt load.
I’m happy to say that the first question has a simple answer. There are a variety of down payment programs designed for the homebuyer lacking the out-of-pocket funds for a home purchase which may be combined with a number of great mortgage loan products.
To the second question, there is no simple answer. Creating a realistic budget which controls spending and reduces debt continues to be the subject of scrutiny from social scientists to behavioral economists, with agreement as to the need, but little consensus as to what constitutes a successful plan.
In our present-day digital world, the proliferation of budgeting and spending apps designed for your mobile device of choice has been overwhelming. Mint.com, the ‘Cadillac’ of apps, with a reported 20 million users to date, set the standard in app technology for linking all financial accounts, and with one stroke, allowed a user to monitor the flow of dollars in, dollars out.
Pocketsmith.com, referred to as a crystal ball for your bank accounts, generates what ifs scenarios through delightful images of your future if you stick to your budget – key word here being if.
YNAB.com, You Need a Budget app, preaches zero sum game approach, with every dollar assigned a ‘job’. As the app says, you are in effect, the ‘maestro’ in charge of sending every dollar to its pre-determined role; i.e., savings, vacation, credit card debt, etc., before buying that impulse item. The thinking here is that if every dollar coming in is already pledged to some expenditure, then you are less prone to splurge on that fun spur of the moment experience not included in your master plan.
As software designers have become more bold, recent apps have devised more and more ingenious ways to move dollars from the ‘to be spent’ column to savings. For example, Acorns.com focuses on your pennies by rounding up your expenses to the next dollar and investing in a pre-determined investment portfolio.
Digit.com app takes an even bolder approach to policing your disposable income by sifting out anywhere from $5 to $50 of your fun money and stashing it safely away in a savings account. Their website states that this dollar round-up is accomplished so surreptitiously, that “you should never notice its missing”. (Somehow, I think I would notice!)
Yet despite all these sophisticated apps, we still struggle to control our spending. For most of us, the recommended emergency fund of 3-6 months of living expenses remains a pipedream, and paycheck to paycheck living is far too common.
Maybe the problem is that budgeting apps have not gone far enough in making spending so unpleasant, that we are forced to become a nation of savers. If we look outside the app world of money management, you find some pretty extreme versions of self-help strategies conceived to reach your goals.
For those people who renew their New Year’s pledge every year to exercise on a regular basis, Equinox, a health club chain, has designed a chatbot that reaches out to members weekly to “encourage” them to stay on track with their exercise regime. (I think the word “encourage” here could be a euphemism for nag or hassle.)
For those people who struggle to wake up mornings, there is a very annoying alarm clock called Clocky on the market which doesn’t just beep you awake, but actually jumps off your bedside table and runs off to the far corners of your room. Needless to say, if you want to turn off Clocky’s beep, you have to get out of bed and chase it around the room. You would start your day on schedule, but probably not in a very good mood – always trade-offs! Do we really want or need to design budgeting apps with similarly irritating functions to help us reach our financial goals?
I suggest that there are other approaches to achieving a financial stability that opens the door to homeownership. Easter Seals Greater Houston offers a variety of classes focused on credit building and debt reduction through our HUD-certified Homebuyer Education Classes. As a great first step towards homeownership, our Down Payment Assistance Workshop covers a range of assistance programs, mortgage products, and income/debt ratios review in determining how much house you can afford. The combination of peer-support group classes and one-on-one counseling is invaluable in helping you create a realistic action plan that moves you forward to your goals.
The proper money management app can serve as a great budgeting tool for individuals working towards specific financial goals, but are only part of the equation. The Easter Seals housing staff is here to provide you with comprehensive counseling services to ensure that your financial plan will take you where you want to go.
It is Saturday, not yet 9—an early morning in The Woodlands with the promise of heat and humidity as people begin to arrive for the monthly Easter Seals Greater Houston‘s Homebuyer and Financial Literacy class/Down Payment assistance workshop. Zip codes filling up the sign-in sheets speak of distance traveled that morning: Harris, Ft. Bend, Brazoria, Waller, Walker Galveston, and Chambers. They come from neighborhoods from rural to urban, big city and small town, over a multi-county stretch. They represent many different income, cultural, and ethnic backgrounds, but all with the same purpose – qualifying for the down payment assistance program that will allow them to purchase a home.
Over coffee and doughnuts, the individual stories take shape. A widowed grandmother talks about the apartment complex where she has lived comfortably for the last 15 years but has struggled to pay the rapidly increasing rent over the last few years. Living on a fixed income with little assets, meeting her monthly rent payments had become unsustainable, and homeownership seemed to be a pipe dream without some kind of assistance.
A young couple with 2 young children spoke of their need for space, a backyard, and safe sidewalks where their kids could bike to neighbors or area parks.
One single Mom of 2 children, who had survived on rental assistance through the county, proudly talked of her now stable job with the expectation of finally owning her own home close to her children’s school. Without down payment assistance that dream of homeownership would remain just that – a dream, as even with good credit and little debt, qualifying for a home she could afford on her income would be impossible without some down payment assistance.
Over the course of the morning, all the local, state and federal down payment assistance programs were reviewed. Mortgage guidelines were discussed and the steps towards homeownership were outlined. Each of these families left class that day with a plan before them, and some months later, all are now proud property owners of a home of their choice.
Homeownership is not for everyone, nor is it something that happens over night; however, with the help of the Easter Seals Greater Houston housing team, commitment to your financial goals, and perseverance, it is attainable.
Whether this is your first home or a move back into homeownership after years of renting, the homebuyer class/ Down Payment assistance workshop is a great first step towards one of the most important purchases of your life.
It’s back-to-school time! And even for those of us that are well past our school days, it can be really easy to relax our routines over the summer. That means that this time of year can be a perfect time to re-establish some good habits and get back on track toward achieving financial goals.
Here in the Easter Seals Greater Houston Housing Initiative, we love to remind our clients that small steps can help us reach big goals. Getting ready to purchase a home starts with small steps and good habits, such as making and sticking to a budget. There are lots of easy ways to make a household budget; you can put pen to paper, make yourself an Excel spreadsheet, or use one of the many cool new apps out there for your phone, like Mint. Whichever method you choose, get started right away! With back-to-school shopping out of the way, September is the perfect month to start and stick to your budget; just make it part of your new routine, just like getting to bed early, packing lunches, and all the other good habits that come with getting back into the school swing!
Still not sure that a household budget will make a difference? Just ask Easter Seals Greater Houston’s client Laura! She came in for an appointment with a coach and worked out a household budget so that she and her husband could pay off some debt and start saving for a house. Three short months later she had paid off two outstanding bills, paid off her vehicle, and started saving toward a down payment for a house! She and her husband hope to purchase by the end of the year.
Another Easter Seals client, Christine, used her household budget to determine how she could pay more than her minimums on her credit cards plus save a little money each month on a very fixed income. With her new budget in place, she received a windfall in the form of a monetary gift from her brother, and since she already had her financial plan in place, she knew just what to do with that money. She opened a high-yield savings account with it and is now on her way to paying off her debt without sacrificing her ability to save for a “rainy day!”
If you’d like help making your budget, give Easter Seals Greater Houston a call! We have lots of great tips and tricks to get you back on track toward your financial goals, whether that means buying a house, increasing your savings, or improving your credit scores. Check out our calendar so you can join us for a class or come in for an appointment!