Family Life Credit Services is a non profit organization. I have been teaching first time homebuyer classes with FLCS for about 3 years and here are some important things everyone should know when looking to buy a house and seeking First Time Home buyer education.
It is a debt repayment program that is not a loan. It takes your unsecured debt such as credit cards, hospital, clinic & dental bills, store cards, personal loans, etc. & combines them into one simple payment each month.
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Why would I send my payment to you?
Family Life Credit Services (FLCS) over its 20 year history has established excellent relationships with creditors. We negotiate with these creditors to eliminate late fees, over limit fees as well as reduce and sometimes even eliminate interest rates. We have trained Certified Financial Counselors that will review your income, expenses, all your bills and then assemble a personalized budget with a livable repayment plan that is specialized to your needs.
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Why can't I pay off my creditors on my own?
You certainly can! But if you find that you are not making any progress paying minimum payments and are beginning to accrue late fees, over limit fees and higher interest rates, you may want to consider a less stressful solution by allowing Family Life Credit Services to handle your creditors for you.
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Why won't creditors lower interest rates for me?
They see Famliy Life Credit Services as often a ‘last ditch' effort for you to pay your debt before it is sent to a collection agency or you file bankruptcy. They recognize that part of our program is education and budgeting which makes you a better candidate to keep your commitment to make your monthly payment.
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How long will it be before my debts are paid?
Most clients on Family Life Credit Services' program are able to pay their debt off in 3 to 5 years. If you continue to pay only the minimum payments that are due your creditors it can take you from 10 to 30 years to pay off your debt and will cost you thousands in interest. With Family Life Credit Services you make one fixed payment each month. As smaller creditors are paid off, your monthly payment stays the same with the difference added to larger high interest creditors, thereby helping you pay them off sooner.
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How will this program affect my credit report?
We do not report to the credit bureaus. Most people starting a debt management program do so because they are overextended financially and their credit score has already been affected or will be soon. Some creditors do report that you are on a debt management program.
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What kind of fees will I be charged for Family Life Credit Services' debt management program?
Your credit counseling is free. Depending on where you live, if you decide to begin the debt management program there may be a one time set-up fee never to exceed $50. There is then a monthly administrative fee based on what you can afford never to exceed $50 - no matter how much debt you have nor how many creditors.
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Can I still keep my credit cards while on this program?
None of the cards you include in this program can be used. They will be considered inactive. Creditors do not allow new debt to be added while on this program. You are allowed to keep one card off the program.
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You can start with us several different ways. You may use the internet and fill out the initial forms. Then email or regular mail them to us. A counselor will contact you to begin the process. You can call us toll-free at 1-800-747-9307 and speak with a counselor right away or you may stop into our office and meet with a counselor in person. All information is kept strictly confidential.
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for Homebuyer Education
How Do I Know If I'm Ready To Buy A Home?
You can find out by asking yourself some questions:
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Do I have a steady source of income (usually a job)? Have I been employed on a regular basis for the last 2-3 years? Is my current income reliable?
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Do I have a good record of paying my bills?
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Do I have few outstanding long-term debts, like car payments?
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Do I have money saved for a down payment?
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Do I have the ability to pay a mortgage every month, plus additional costs?
If you can answer "yes" to these questions, you are probably ready to buy your own home.
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How Do I Begin The Process Of Buying A Home?
We would encourage you to first talk with a housing counseling agency. They will work with you or answer questions such as: Are you ready to buy a home? How much can you afford in a monthly mortgage payment (see Question 4 for help)? How much space do you need? What areas of town do you like?
After you answer these questions, make a to-do list and start doing casual research. Talk to friends and family, drive through neighborhoods, and look in the "Homes" section of the newspaper.
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How Does Purchasing A Home Compare With Renting?
The two don't really compare at all. The one advantage of renting is being generally free of most maintenance responsibilities. But by renting, you lose the chance to build equity, take advantage of tax benefits, and protect yourself against rent increases. Also, you may not be free to decorate without permission and may be at the mercy of the landlord for housing.
Owning a home has many benefits. When you make a mortgage payment, you are building equity. And that's an investment. Owning a home also qualifies you for tax breaks that assist you in dealing with your new financial responsibilities- like insurance, real estate taxes, and upkeep- which can be substantial. But given the freedom, stability, and security of owning your own home, they are worth it.
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How Does The Lender Decide The Maximum Loan Amount That I Can Afford?
The lender considers your debt-to-income ratio, which is a comparison of your gross (pre-tax) income to housing and non-housing expenses. Non-housing expenses include such long-term debts as car or student loan payments, alimony, or child support.
According to the FHA, monthly mortgage payments should be no more than 29% of gross income, while the mortgage payment, combined with non-housing expenses, 4 should total no more than 41% of income. The lender also considers cash available for down payment and closing costs, credit history, etc. when determining your maximum loan amount.
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How Do I Select The Right Real Estate Agent?
Start by asking family and friends if they can recommend an agent. Compile a list of several agents and talk to each before choosing one. Look for an agent who listens well and understands your needs, and whose judgment you trust. The ideal agent knows the local area well and has resources and contacts to help you in your search. Overall, you want to choose an agent that makes you feel comfortable and can provide all the knowledge and services you need.
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How Can I Determine My Housing Needs Before I Begin The Search?
Your home should fit way you live, with spaces and features that appeal to the whole family. Before you begin looking at homes, make a list of your priorities - things like location and size. Should the house be close to certain schools? your job? to public transportation? How large should the house be? What type of lot do you prefer? What kinds of amenities are you looking for? Establish a set of minimum requirements and a ‘wish list."
Minimum requirements are things that a house must have for you to consider it, while a "wish list" covers things that you'd like to have but aren't essential.
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What Should I Look For When Deciding On A Community?
Select a community that will allow you to best live your daily life. Many people choose communities based on schools. Do you want access to shopping and public transportation? Is access to local facilities like libraries and museums important to you? Or do you prefer the peace and quiet of a rural community? When you find places that you like, talk to people that live there. They know the most about the area and will be your future neighbors. More than anything, you want a neighborhood where you feel comfortable in.
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What Should I Do If I'm Feeling Excluded From Certain Neighborhoods?
Immediately contact the U.S. Department of Housing and Urban Development (HUD) if you ever feel excluded from a neighborhood or particular house. Also, contact HUD if you believe you are being discriminated against on the basis of race, color, religion, sex, nationality, familial status, or disability.
HUD's Office of Fair Housing has a hotline for reporting incidents of discrimination: 1-800-669-9777 (and 1-800-927-9275 for the hearing impaired).
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How Can I Find Out About Local Schools?
You can get information about school systems by contacting the city or county school board or the local schools. Your real estate agent may also be knowledgeable about schools in the area.
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How Can I Find Out About Community Resources?
Contact the local chamber of commerce for promotional literature or talk to your real estate agent about welcome kits, maps, and other information. You may also want to visit the local library. It can be an excellent source for information on local events and resources, and the librarians will probably be able to answer many of the questions you have.
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