welcome to… your own home orientation sponsored by:
TRANSCRIPT
You Will Know
• Who we are•The benefits and pitfalls of renting versus owning • How to determine your readiness to buy a home • Different mortgage programs• Basic terms used in the mortgage process• Documentation you need to gather
NeighborWorks® Anchorage We’re here to help
• Over 1000 homebuyers have become homeowners
• Nearly 2000 individuals have received pre-purchase counseling
• We guide people of all incomes through the home buying process
EVERYONE DESERVES A PLACE TO CALL HOME
We make this possible through quality• COUNSELING, EDUCATION AND
AFFORDABLE LOAN PRODUCTS
• COMMUNITY LEADERSHIP
• AFFORDABLE RENTAL HOUSING
NEIGHBORWORKS® ANCHORAGE IS…
• A private non-profit organization• HUD-certified housing counseling agency• Member of a national homeownership network• A non-profit mortgage lender providing
affordable loan products to Alaskans• An affordable housing provider in Anchorage • An affordable housing developer• A community builder and organizer
WHY PARTNER WITH A TRUSTED RESOURCE…
• Buying your first home is usually the biggest financial investment in your life
• The home buying process is complicated and there are many important choices to be made
• Getting into your first home is a big accomplishment-staying there is equally important
Meet Robyn and the girls…
In 2000 Robyn was supporting her 3 daughters by herself. She has obtained a bachelors degree and is now working toward her masters. After many years of sacrifice, she became a homeowner in 2009 by using a NeighborWorks® Anchorage affordable loan program.
Meet Rachel and the boys…Rachel is a disabled mother of three. Though many years of hard work, attending homebuyer education classes and counseling, Rachel was able to purchase a home through a partnership with NeighborWorks® Anchorage, Alaska Housing Finance Agency and the Municipality of Anchorage.
Renting• No property maintenance
• You are under contract for one year or less
• You do not have the costs of taxes and insurance, it is included in the rent
Owning a Home
•You can build equity
•Your home usually appreciates in value
•The home is yours
•Your mortgage interest is tax deductible at this time
•Provides stability and empowerment
Am I Ready to Buy a Home?
• Do I have a steady source of income?• Have I been employed on a regular basis for 2 years?• Is my income reliable?• Do I have a good credit history?• Am I able to pay my bills and other debts?• Do I have the ability to make the mortgage payment every month, plus handle the maintenance and repairs?• Do I have money saved for downpayment?
Your Mortgage Payment• P=Principle. The amount applied to the
outstanding balance of the loan.• I=Interest. The amount the lender charges for
borrowing money.• T=Taxes. 1/12th of the estimated annual real
estate taxes• I=Insurance. 1/12th of the annual homeowner’s
insurance premium. Includes flood insurance and private mortgage insurance (PMI), if required.
How Much Mortgage Can I afford?
Housing or Front – End Ratio• Monthly housing expenses as a percentage of
income.• Typically no more than 33% of your gross
monthly income.
Total debt ratio or Back – End Ratio• Monthly housing expenses plus other debt.• Typically no more than 41% of your gross
monthly income.
Preparing for Homeownership
• Gather your documentation• Attend Alaska Housing’s Home Choice
Class• Get pre-qualified by your lender• Compare loan programs• Save money• Prepare a budget• Do not take on new debt• Don’t change employment without
discussing with your lender
Documentation to gather• Most recent 3 years tax returns and
W2’s• Most recent pay stubs for past 30
days• Documentation of all income such
as Social Security, Adult Public Assistance, Rental Income, Self Employment Income
• Most recent 3 month’s bank statements from all accounts
• Address history for past 2 years with landlord’s name, address and phone number
• Driver’s license or other photo ID
Loan Programs• AHFC First Time Homebuyer (Tax Exempt)
• AHFC First Time Homebuyer (Taxable)
• AHFC Veterans Mortgage Program (VMP)
• AHFC Rural Owner Occupied Loan
Program
Loan Programs Continued• Conventional (Fannie Mae or Freddie Mac)
• FHA Insured Loan
• VA Guarantee Loan (Veterans Only)
• Rural Development(outside metropolitan areas)
•HUD 184 (specific to Alaska Natives and Native Americans)
Down Payment Assistance Programs
• Home$tart• Anchorage Neighborhood Housing Services, Inc.
dba NeighborWorks® Anchorage• Cook Inlet Lending Center
Other Down payment Sources• Gift from family member, church or employer• Sale of an asset• Borrowing from a retirement account or against
an asset
Shopping for a mortgage
• Shop for a lender– Is the lender willing and able to answer all of
your questions
• Compare rates, fees and terms
• Compare loan types
• Where will the loan be serviced
• Read and understand all the documents
• Don’t sign blank documents
WHERE DO I START?
• Attend the Alaska Housing Home Choice Class
• Complete the Homebuyer Assessment form
• If you are already working with a lender and they have pulled your credit report, please note on the top of the assessment form who the lender is and “Do Not Pull Credit and provide a copy of the report with the assessment form
Next Steps…
• We’ll run your credit report and complete your assessment
• You will be assigned a HomeBuying Specialist who will guide you through the process
• We will call you to schedule your initial appointment Due to the high volume of registrations it may take up to 5-7 business days to complete your Homebuyer Assessment. Our staff will contact you as soon as it is completed.