NeighborWorks America Offers Five Tips as New Homebuying Season Begins

WASHINGTON, DC--(Marketwire - Mar 21, 2012) - NeighborWorks® America, one of the largest community development corporations in the U.S. and a leading provider of homebuyer education and advisory services that helped more than 13,000 people become homeowners in 2011, today released a list of top-five things a potential homebuyer should consider as the 2012 home buying season begins.

"Mortgage rates are near record lows and home prices may be within reach of many consumers who want to buy in today's market," said NeighborWorks America Director of Homeownership and Lending Marietta Rodriguez. "But there are more things to consider than low mortgage rates and home prices when your plan is to be a successful long-term homeowner."

1. Get mortgage ready. When searching for a home, whether you're a first-time homebuyer or a repeat purchaser, make sure that your credit is as strong as it could be. Looking for a mortgage with weak credit could result in a higher than anticipated mortgage cost. Working with a homeownership advisor from a NeighborWorks HomeOwnership Center or other NeighborWorks organization is a good way to start the homeownership process. A list of NeighborWorks HomeOwnership Centers and NeighborWorks organizations can be found at www.nw.org/homeownership. Homeownership advice from NeighborWorks is provided free or at very minimal cost, typically less than $50.

2. Cost isn't just the mortgage payment. A mortgage is just one part of a homeowner's monthly housing budget. Being aware of utility, maintenance and transportation costs is also important when deciding whether a home is affordable. A NeighborWorks HomeOwnership Center advisor or other NeighborWorks organization staff can help prepare a realistic and sustainable budget that helps to make homeownership successful over the long-run.

3. Not all mortgages are created equal. NeighborWorks organizations helped homebuyers obtain more than $2 billion of home financing in 2011, so they're expert at helping a consumer obtain a mortgage. Fixed-rate mortgages offer payment certainty, while adjustable rate mortgages frequently provide lower initial monthly payments, which could rise considerably over time. Work with a trained homeownership advisor to help get the right mortgage loan.

4. Get a Realtor who knows the market. Searching for a home over the Internet is one thing, actually going through the process and closing on a home without professional assistance is another. Professional advisors in NeighborWorks HomeOwnership Centers help homebuyers everyday connect with Realtors who know the local market and want to help consumers get the right home. In fact, several NeighborWorks organizations have in-house real estate services.

5. Don't rush. Buying a home is not a race. Moving too quickly because the "dream home" just came on the market could be the first of many mistakes. Take the time to obtain a home inspection, look over the neighborhood and investigate the school district. As with many of the steps to home buying, work with a homeownership advisor.