TheAmerican Dream

Are you financially prepared to buy a home?Do you understand lending criteria?What should you know prior to closing?

PRESENTED BY GREENPATH

Jane DoeCertified Consumer Credit Counselor

How Much Can You Afford?

Annual Income X 2.5

The smallest mortgage possible

How Much Can You Afford?

How Much Can You Afford?

Annual Income X 2.5

The smallest mortgage possible

Spending Guidelines

35%

25%15%

15%10%

Housing Living ExpensesTransportationDebtSavings

Cash Funds Required

• Down Payment• Earnest Money Deposit• Closing / Settlement Costs• Post-Purchase Reserve Funds• And…

What are some costs of homeownership

that people typically forget?

• Homeowner’s Insurance• Property Taxes• Commuting Costs• Home maintenance• Utilities• Furniture

Do you know the difference between a

front-end and back-end ratio?

Debt Ratios

• Front End Ratio• Back End Ratio

Turn to page 5 in your workbook for an example of ratios.

What’s the difference between a dream

and a goal?

SpecificMeasurableAttainableRealisticTimely

S M A R TGoal Setting

Take a moment to fill out some goals of your own!

Develop Your Budget

This chart is also on page 4 of your workbook.

Visit www.greenpath.com/university/resources for free budgeting worksheets

Resources

Do you know the difference between

pre-qualification and pre-approval?

Getting Ready to Shop

Turn to page 6 in your workbook.

• Pre-Qualification• Pre-Approval

Needs vs. Wants

What are your top 3 needs in a

home?Turn to page 7 in your workbook and fill in the blanks.

Negotiating the Deal

• New Home Inspection• Selling Your Present House• Appraisal• Closing Costs

Shopping for Your Loan

Conventional

Shopping for Your Loan

Government Financed / Insured

Mortgage Specifics

Fixed Rate

Mortgage Specifics

ARMHybrid / Convertible

Mortgage Specifics

EscrowPMI

Comparing Lenders

• Down Payment• Discount Points• APR

Do you know the criteria lenders use to determine eligibility

for loans?

Evaluation Criteria

• Stability of Income• Adequacy of Income• Sufficient Money to Close• Creditworthiness

Closing TipsReview HUD-1

View House

Be CourageousRead

Ask Questions

Turn to page 13 in your workbook to see the documents received at closing.

Don’t Forget

Consult with the Prior Owner

Don’t ForgetReview the Home Inspection Report

Don’t Forget

Save for Maintenance

Don’t Forget

Get Sufficient Homeowner’s Insurance

Don’t Forget

Be a Good Neighbor

Questions?

GET IN TOUCHCONTACT US

We’d love to chat more!GreenPath is a not for profit consumer credit counseling agency and HUD approved housing counseling agency with offices around the country.

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THANK YOUJane DoeCertified Consumer Credit Counselorjdoe@greenpath.com