June is Home Ownership Month.

I would like to take this opportunity to wish everybody a Happy Home Ownership Month. That is right - June is homeownership month and celebrated across the country. If  home ownership is your dream - stay encouraged and continue to working toward that dream.

As a reminder of a previous post I did - 24 months to homeownership.

• Home ownership is a decision and consideration should be given in advance. You shouldn't wake up one day and say I want to buy a home tomorrow.

• Save. Establish a savings pattern. There are down payment, closing costs and upfront housing expenses that you want to have funding set aside for. With the changing market, lenders are also wanting to see more "reserves" - assets still in your possession after closing. You should not leave the closing table with nothing to your name - except that deed and mortgage. While there are sill low down payment programs and 100% financing available  -  all effort should be made to save.

• Employment. Make sure your employment is steady or increasing in the 24 month period. Lenders like consistency in employment and like to see consistency or advancement if there are job changes within the 2 year period prior to your purchase.

• Credit. Establish it. Use it sparingly. Pay off balances or keep them low. Remember your credit history is important and it is used as an indicator to how you will pay your mortgage. No lender wants to pull a report and see a series of collections, judgments and pay-offs. This increases your risk level - and YOUR interest rate.

• Rental History. As a first time buyer, your housing history is your rental history. If you pay rent, make sure it is documented. Have an audit trail - in other words do not pay in cash. First time buyers can have excellent rental histories with no way to show it because they paid in cash to a private landlord. For first time buyers with light credit - rental history can often be used as a compensating factor or additional trade line.

• Participate in a home ownership class - These are free and housing providers can be found on HUD. Classes are free or offered at a very low cost. Learn about the true costs to own a home and make sure you are on track with budgeting.

• Have a positive outlook and be realistic. Your first home -I s just that. It is a starter home and can be used as stepping stone your dream home.

Once again...Happy Home Ownership Month from The Mortgage Oasis!

Have a Question....Just Ask The Mortgage Oasis.