Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, May 5, 1990 TAG: 9005080190
SECTION: AMERICAN HOME WEEK PAGE: AH13 EDITION: METRO
SOURCE: BETSY BIESENBACH
DATELINE: LENGTH: Medium
"A home is the biggest investment you can make, but the best one," said Kathryn Bush, a REALTOR with Cummins and Co. "They don't make any more real estate.
"Everybody wants to have something to call their own," she added. Unfortunately, some people just can't afford to buy a house. Sometimes, those who are least capable of affording a home want one the most.
For one reason or another, they fail to quality for a loan.
"It's really tragic when someone calls us and we have to tell them they won't be able to qualify," she said. They may be able to make the monthly mortgage payment, but they have nothing put aside for a down payment or for items such as insurance.
On the other hand, she added, there are plenty of people who are "very anxious to own a home," but think they can't.
The trick to finding out if you qualify, she said, is to learn what it takes to get a loan and then to educate yourself about different types of loans and loan programs.
In observance of American Home Week, the Roanoke Valley Association of REALTORS conducted a seminar that was aimed at helping people get started with buying a first home.
The event featured speakers from the legal, banking, and real estate communities. There also was a question-and-answer period, and Bush, who is coordinating the seminar, said there were REALTORS on hand to consult with people about their home-buying questions.
Similar seminars have been held in other parts of the valley, such as the Arnold R. Burton Technology Center in an attempt to bring information to people where they live in hopes of high attendance.
"We want to give everybody an opportunity to know enough to decide if they can or can't buy a house," Bush said.
The desire to own a home of your own stretches across all economic boundaries, she said. Even people who have little interest in keeping up rental property seem to take pride in home ownership.
"They fix it up, it's safe and secure and it's something to pass on to the children."
Many people, Bush said, are unware that the first step in buying a home is to call a REALTOR. The REALTOR is working for the seller, she said, so his or her services are free to the buyer. REALTORS also have access to the Multiple Listing Service, a comprehensive listing of properties available for sale. Otherwise, prospective home buyers have to comb the classified ads, or drive around for hours to find a home for sale.
The REALTOR also will sit down with the buyers to determine whether they can qualify for a loan, even before it's time to approach the bank.
Both the REALTOR and the bank will look at the buyers' income, debt load, job status and how much they are able to invest in a property.
It's important to have been at the same job for a while, Bush said, no matter what that job may be. "It shows stability."
It's also important, she said, to have some money set aside for a down payment, and to have a good credit history. Judgments and bankruptcies can be cleared up, but many people, Bush said, do not realize that when they co-sign a loan for someone else, that, too, is considered as personal debt when qualifying for a mortgage loan.
If the buyers and the REALTOR determine from information provided by the buyers that the buyers could qualify for a loan, the REALTOR will even accompany the buyers to the bank or mortgage company to help with the loan application process.
They are also present at the closing, and many REALTORS will even check back with buyers a few months after the sale to make sure everything is all right, Bush said.
"We're there from day one and guide them through all the way through closing.
One of the most important features of the seminar, she said, is that it provides information about loans that are available to low-income families as well as programs that offer money for rehabilitation and renovation as well as for the purchase price.
"It's a great benefit for someone to buy a house," she said. Most of the cost of the taxes and mortgage payment interest can be deducted from income taxes, which can make home ownership cheaper than renting.
by CNB