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Buying a Home

• Glossary of home buying terms
• Tips Towards Establishing a Positive Credit Rating
• Tips for Responsible Spending
• Housing Counseling Services

Adjustable Rate Mortgage (ARM)
A type of mortgage where the monthly mortgage payment may change within certain limits because the interest rate is adjusted periodically based on market conditions.

Closing Costs
The costs that are paid at closing to complete the real estate transaction, in addition to the price of the home.

Credit
The ability of a person to borrow money, or obtain goods with payments over time because a lender has a favorable opinion o the person's financial situation and reliability.

Credit History
A list of individual consumer debts and an indication as to whether these debts were paid in a timely fashion; a record of credit use.

Credit Score
A computer-generated number that summarizes an individual's credit record and predicts the likelihood that a borrower will repay future obligations based on a statistical model.

Down Payment
A percentage of the value of the home or property paid in cash toward the purchase price at the time of the sale; typically range from 0% to 20% of the property's value.

Equity
The value of a home above the amount still owed on the mortgage loan used to buy the home; for example, if a home has a value of $110,000 and $90,000 is still owed on the home's mortgage, the homeowner has $20,000 in equity in the home ($110,000-$90,000)

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• Open a savings account and make regular deposits
• Open and use a checking account
  Always know your balance and avoid "Not Sufficient Funds" checks
• Obtain a limited-use credit card such as a department store card
  Use your card responsibly! Make small purchases and pay the card off every month when the statement arrives. Use our "Tips for Responsible Spending"
• Take out a small loan at a bank or credit union
  You may need some type of collateral, or a co-signer, to get the loan. If you do have a co-signer, make sure the loan is reported in your name to all credit reporting agencies. Put the money from the loan in a savings account and make at least 6 monthly payments on the loan before paying it off in full.
• Always pay bills on time
  Late payments or collection accounts will tarnish your credit record.
• Demonstrate stability
  Stay at least two years at the same job; live at least two years at the same address
• Do not apply for too many lines of credit at one time
  Creditors view an excess of credit applications as a sign of potential risk. They may deny your request for credit due to the number of inquiries on your credit report. Carefully think through the offers of "open a credit account today and receive 15% off your purchases!"! Do you expect to frequent this store often, or is this just a one time discount?
• Close inactive or not needed lines of credit
  Creditors may view open lines of credit as debts, even if you have no balance owed on those accounts
• Get a copy of your credit report from at least one credit reporting agency each year
  Use the report to correct any errors, to take care of any forgotten debts or to close inactive lines of credit

PCCA counselors are here to help you in establishing and repairing credit. Schedule an appointment today!

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Before you buy something, ask yourself these questions:

• Will this purchase help me reach my financial goals?
• Do I really need this item or just WANT it?
• Would I come back tomorrow to buy this?
• Can I really AFFORD it?
• Would I buy it if I had to pay cash for it?
• If I buy it on my credit card, can I pay it off this month?

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Pre-purchase Homebuyer Counseling

Planning to buy a home this year?
PCCA counselors help you plan and qualify for a mortgage in addition to providing you with expert information about the home buying process. PCCA counselors will help you:

Home Buyer Counseling
This service provides first time home buyers with professional individual Housing Counseling sessions on -

• Planning for the purchase of a home
• Review & Evaluation of Credit
• Determining credit readiness for financing
• House Affordability Analysis
• Closing cost Estimations
• Education on the Home buying and Financing processes
• Determining Eligibility for special First Time Home Buyer programs
• Obtaining Grants to assist First Time Homebuyers
• Direct referrals to lenders for loan pre-approvals
• Assistance throughout the Home buying experience up to Settlement
• Settlement representation under special programs.

Credit repair Counseling
This service assists consumers in resolving credit issues and problems.
Counseling includes –

• Review & Evaluation of Credit
• Preparing letters of inquiries to creditors
• Preparing credit investigation request forms for credit repositories
• Developing a Budget designed to correct credit deficiencies and meet lending requirements

Read about Lisa K. who took advantage of PCCA Services
Ms. K is a single mother living on a fixed income. She dreamed of owning a home, and PCCA helped make this dream a reality for her family. Through extensive education and counseling, Ms. K. set realistic goals improved her credit status and became an educated consumer in a competitive real estate market.

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