Home Ownership: Advice From Your Local Mortgage Advisor
By Courtney Johnson and Kimberly McCloud
Thinking about buying your first home, but don’t know where to start? Buying a home is one of the most important financial decisions a person can make, and the path to homeownership can seem overwhelming for many first-time homebuyers. Fortunately, this is not mandatory. Chase Bank can help you navigate the home buying process, so getting the keys to your first home may be closer than you think.
Homeownership is more than a dream for many Americans. In the Chase Home Lending New Home Buyers Study, 69% of respondents said they viewed homeownership as an important part of building wealth. The survey covered more than 1,100 consumers who indicated that they are looking to buy a home and are actively preparing to buy it.
For black communities, which have a significantly lower homeownership rate than other groups, the 2008 housing crisis and COVID-19 pandemic continue to wreak havoc. That’s why Chase is taking steps to take an active role in creating opportunities for minority communities, including providing affordable and low-cost down payment options with products and programs designed for Black families in the process. of home ownership.
Dive in and find out what you need to know about buying your first home, and how Chase can help make your dream come true.
Work with a mortgage advisor
Chase’s mortgage advisors are responsible for helping you prepare for home ownership, find the financing solutions that suit your needs, and secure any down payment / housing assistance you may be in. eligible. Home loan advisors work closely with many first-time home buyers, helping them navigate this process for the first time. They also help clients who are looking to refinance or who might expand or reduce their current home. Chase and his mortgage team begin by reviewing each client’s full financial situation to make the best recommendation for your path to homeownership. From prequalification to closing, we’re here to offer advice, support and expertise throughout the process.
Apply for a mortgage
Here are some basic things first-time home buyers should understand before starting this process:
- Prepare your finances: Buying a home can be a big financial undertaking, which is why keeping your finances in good health will be important. This involves things like continuing to pay bills on time, not taking on new debt, and building up your credit score, which can help you get a lower interest rate on your home loan. Chase makes it easier for clients to improve their credit rating by supporting Project REACh, a program that increases the chances of approval for applicants who traditionally don’t have access, so they can take that very first step.
- Plan your deposit: It is a well known fact that you will probably have to put some money up front to buy a house. However, it is a myth that you have to put 20% down. Every case is different, and there are a variety of mortgages available that can require as little as 3% down payment, such as the Chase DreaMaker. There may also be local programs that could help with down payments and closing costs. It’s always a good idea to start saving, but it’s also important to familiarize yourself with the products and support that may be available to you. You can connect with a mortgage advisor to get started.
- Be pre-qualified: At the start of your home buying journey, you need to know in advance how much you can afford to buy a home. Getting prequalified through a lender like Chase lets you see what you might qualify for, and it also shows sellers and real estate agents that you are a serious and competitive buyer.
Recognition of the resources at your disposal
Chase’s Homebuyer Grants Program offers up to $ 5,000 to eligible clients to help with closing costs and down payment assistance when buying a home in over 6,700. minority communities nationwide. The Chase DreaMaker Mortgage offers down payments as low as 3% and reduced mortgage insurance.
Chase has also developed a new role called âCommunity Mortgage Loan Advisor,â which is designed to be in minority and low to moderate income communities. They are experts focused on local housing and down payment programs and working closely with local non-profit housing agencies and other community organizations. To date, Chase has hired over 100 community loan counselors nationwide and will continue to grow.
For those just starting their homeownership journey, Chase’s Financial Goal Center is a great place to start. You start by choosing a goal, which can be saving or building credit, and explore tips, offers, and tools to help you reach and achieve it. The Grow your savings The page, for example, features an interactive calculator that sets a timeline for meeting savings goals and highlights how the auto-record tool can help you manage a regular savings schedule to stay on track. and achieve your goals. There are also other great resources, such as budget spreadsheets to monitor and track monthly expenses, tips on using the Credit Journey tool to create and protect credit, and account information. Low cost streams designed for those who have had difficulty obtaining or maintaining an account in the past.
Know when to buy
Buying a home can be exciting, but it can also come with a lot of stress. Learning as much as possible about the home buying process is the best thing you can do before you start looking for properties or comparing mortgage options. Other questions you should consider before buying a home include:
- Do you have a stable income to rely on?
- How many houses can you afford?
- Have you chosen a place where you want to stay for the long term?
- Are you comfortable managing your debts?
If you think you are ready to take the next step in buying a home, contact us to learn more about the tools, resources and capital available to help you achieve your dream of home ownership.
Courtney Johnson Kennedy and Kimberly McCloud are the Milwaukee Community Managers for Chase.
Sponsored content from JPMorgan Chase & Co.