The Voice of Southwest Louisiana June 2019 Issue

SWLA nonprofit
Purchasing a
Home Does
Not Have to
be Scary
Homeownership is a big
step with many variables
to consider. Most of us will
have to finance our home with a
mortgage, and that can make the goal of
purchasing a home seem daunting and
unattainable, but just like any other goal
approached with a solid plan of action,
homeownership is achievable. Here are
a few things to consider as you plan to
purchase a home.
1. Know and understand your
financial status
A typical budget strategy suggested
by many financial planners is an
after-tax 50/30/20 split: 50% needs
(housing, bills, food, car, health);
30% wants (shopping, dining out,
hobbies); 20% savings & debt
payment. It is important to know
where you stand financially prior
to purchasing a home. Be aware of
your FICO credit score, know the
percentage of your income needed
to pay monthly debt, and what
you need to have saved for a down
payment.
2. Prioritize, and know the difference
between, “needs” and “wants”
It is easy to get caught up in the
latest and greatest trends being
showcased in magazines and home
improvement programs, so define
and list your needs and wants,
determine the compromises you
are willing to consider, and visit
scheduled open house events to
choose between the two.
3. Look at ALL costs associated with
your monthly payment
No more than 28% of your income
should be allocated to home costs
- including all costs associated with
your home (mortgage payment,
insurance, property taxes)! Consider
utility costs, and saving for future
repairs or changes. Be aware of
your monthly finances, and budget
accordingly, to ensure the home you
are purchasing is the right home for
your budget.
4. Ask questions
You will not know everything, so
work with someone you trust and
feel comfortable asking questions
with. Conduct your own research,
take a home buyer education class,
or visit with an entity that offers
credit counseling services. Set
yourself up early in the process for
success!
5. Be patient
Lenders need to know that you are
reliable and stable. A consistent
employment history is important,
but no major bank changes, large
purchases or large debt incurment
prior to the home purchase are
important factors, too.
PROJECT
BUILD
A FUTURE
Building Hope by Building Homes
2306 Third St. • Lake Charles, LA 70601
Through financial literacy classes and a home buyer
counseling program, Project Build a Future has
helped 100+ families in 18 years purchase a
quality, affordable home. Our staff would be
happy to speak with you to determine if and how you
can achieve the goal of homeownership. Stop by our
office, or call us today, for more information.
Call For An Application: 337-439-7191
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June 2019 WWW.THEVOICEOFSOUTHWESTLA.COM Volume 6 • Number 11