Capitol Monitor ....
Congressman J. Randy Forbes, Fourth District of Virginia 

June 24,  2005

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In this Issue

1. The ABC's of Homeownership

2.  Stories from Our Hometown

 

 

::  Point of View  ::

Why is it that owning a home is called “the American Dream?” Of all the things that make this country a place where dreams can become reality, why is it that homeownership tops our wish list? Perhaps it’s because owning a home has historically been the best opportunity most families have to create financial security and neighborhood stability.

There are plenty of people who work hard, living paycheck-to-paycheck and earning just enough to make ends meet and perhaps a little more for an occasional vacation. Can families who have always rented ever hope for their share of this dream? Absolutely.

June is National Homeownership Month, a time for folks dreaming about owning a home to take some concrete steps toward making this dream come true. So, for those hoping to say goodbye to a landlord, here are some brief ABCs of buying your first home from the Department of Housing and Urban Development.

First, check your credit. The moment you apply for a home loan, your credit history becomes an open book. It’s a good idea to examine your own credit score before your banker or broker does. If there is a mistake or a blemish on your record, you have a chance to repair it so that when the time does come for you to seek financing, you’ll be on firm financial footing. The three major credit-reporting agencies are: Equifax, www.equifax.com, 888-202-4025; Experian, www.experian.com, 888-397-3742; and, TransUnion, www.transunion.com, 800-916-8800. Start by calling them, getting a copy of your credit report and examining it closely.

Second, start collecting all the documents your lender or mortgage broker will ask you to provide them. Wage statements, tax returns, employment history and a summary of your monthly expenses are a good start.

Third, determine how much home you can afford given your income and other monthly expenses. Provided your credit is in good shape, the general rule of thumb is you can afford a home that costs about two-and-a-half times your annual income. If your family income is $50,000, you could look at homes selling for $125,000.

When you have found that perfect house that you would like to call home – the one that you can afford to purchase as long as everything lines up just right and you have found the right mortgage broker and collected all of the relevant information to be approved for your home loan, make sure that you understand what your “closing” and settlement costs for your new home will be before you meet to sign the papers. To make sure that you are prepared for your closing and for more information about this part of the process go to http://www.hud.gov/offices/hsg/sfh/res/sfhrestc.cfm.

At most closings today, you will be required to have a title insurance policy by your lending institution. Do not assume this policy protects you. It may only protect the lending institution. Ask your closing agent what protection you have for your property. Often, for only a small additional premium, you can obtain an “Owner’s Policy” that will insure the title to your home for you, as well as for the lending institution. Always ask what is covered and what is not. This could be the largest investment you will ever make for your family – it is no time to be bashful.
Finally, don’t be afraid to ask questions of the pros. Buying your first home is an exciting thing, but the prospect of taking on the biggest debt of your lifetime can intimidate the best of us. Consult the experts. HUD has a list of approved housing counselors who can walk you through this process step-by-step. You can find a counselor near you by visiting www.hud.gov.

Owning your own home, your own piece of land, is part of the American Dream. There is just something that resonates within us that likes having a place to hang our hat at night and call our own. By owning your home, you are investing in your future and establishing a bond with the community. Homeownership is not as illusive as it may seem. Take advantage of the resources available and you can be one step closer to making this part of the American Dream a reality.
 

:: "Super Saturday" in Petersburg ::

Nearly 400 Petersburg Public School (PPS) students gave up their Saturday play time this spring to participate in Super Saturdays, where they studied intensively to prepare them for the upcoming SOL tests. As a reward, the last "Super Saturday" was a carnival. Eighteen new bicycles, donated by community residents, were given away, along with cash and other prizes. Businesses, churches, PPS staff and many individuals donated time, money and effort to make this event a success. --- Cliff Davis, PPS Public Information Officer.
 

If you have a positive story, I invite you to take a moment, write it in 300 words or less and email it to me via my website www.house.gov/forbes. We’re looking forward to sharing good news from your hometown!


Send your "Hometown" stories to:
Office of Congressman J. Randy Forbes

307 Cannon House Office Building

Washington, DC 20515

Phone 202-225-6365

Fax 202-226-1170

ON THE HILL ....

Current Floor Proceedings

Bills Coming Up This Week

Monthly Whip Calendar

OFFICE LOCATIONS ....

307 Cannon House Office Building
Washington, DC 20515
202.225.6365

505 Independence Pkwy, Suite 104
Chesapeake, VA 23320
757.382.0080

2903 Boulevard, Suite B
Colonial Heights, VA 23834
804.526.4969

425 H. South Main Street
Emporia, VA 23847
434.634.5575

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