For those homebuyers who are ready to purchase a home right away, your Home Purchase Advisor will provide you with a Buyer Ready Certificate that shows important information that will guide you in your home search – information such as your purchasing power, the mortgage program and interest rate for which you qualify, and any homebuyer assistance for which you are eligible. If you are not already working with a Realtor, your Home Purchase Advisor can introduce you to a Homewise Realtor who can help you with your home search.  

For those homebuyers who still have work to do to qualify for financing, your Home Purchase Advisor will work with you to develop an action plan of next steps that will help you qualify for a good mortgage and, if necessary, increase your purchasing power needed to afford a home that meets your needs. Typically, the next steps outlined in the action plan will include at least one of the following: 

Credit For many people, the key to qualifying for a good mortgage (one with a good interest rate and no add-on costs such as mortgage insurance) is the need to address credit issues. Sometimes this means one’s credit rating is not high enough. Other times, it means you do not have a credit history and need to establish one. Homewise Home Purchase Advisors are adept at helping people improve their credit scores or establish a credit history, whichever is needed. For example, last year the typical Homewise client who had a credit score below 640 when they started working with a Homewise Advisor, improved their score by 30-50 by the time they purchased a home. 

Debt People’s current debt (credit cards, auto loans, etc.) can affect their ability to purchase a home. Reducing current debt can improve your credit rating and help you qualify for a good mortgage. Reducing debt can also increase your home purchasing power, giving you more options on the homes you can purchase. This is because the mortgage approval process takes into account your overall debt load – less current debt means you can borrow more for a home. Homewise Home Purchase Advisors know how to help you pursue a debt reduction plan. Last year the typical Homewise homebuyer reduced their monthly debt load an average of $200.

Savings While Homewise offers mortgage with low downpayment requirements, a homebuyer still needs some savings. The typical Homewise buyer needs to save a total of about 2% of the home purchase price for their portion of the down payment and closing costs. (In contrast FHA mortgages require 3.5% for the down payment plus the closing costs, which could be another 2-3% of the purchase price.) Given the high cost of rent and other expenses, it is common for many households to have no or very little savings. Your Home Purchase Advisor can also help you work on a savings plan that effectively increases your savings often times a lot faster than you would expect. Some buyers may also qualify for a matched savings program in which the amount you save each month is matched by an equal amount (up to certain limits).

Free Classes Your Home Purchase Advisor will also be glad to sign you up for one of Homewise’s free Homebuyer Education or Financial Fitness for Life classes, depending on which makes the most sense for you at the time.