::
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 |
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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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