A homeownership workshop, sponsored by the WHATT (Workforce Housing Association of Truckee Tahoe), was held May 10. The workshop focused on how to build good credit and how to become an informed homebuyer.
Representatives from Wells Fargo Bank conducted the workshop, which was free and open to the public. Only five people attended the meeting, which made the atmosphere informal, but still comprehensive. There was a Spanish workshop planned for May 7, but no one attended.
In order to buy properties, you have to be an informed homebuyer, said Harris Warren, Wells Fargo Home Mortgage Consultant. As many people know, loan qualifications are made based on your credit score. Maybe less known, it’s the last two years that are most important when applying for a loan, Warren said. But remember, if you do not pay your debts, it counts against your credit score for seven years.
As a guideline for what price range fits your budget, Warren said only a half or less than a half of your total monthly earnings should be spent on house payments, car bills and credit card bills; or all debt payments.
Also he said good use of a credit card could help a potential homebuyer to have a good score in his/her credit. Not exceeding fifty percent more than the limit of the card helps build good credit.
Advantages of being a homeowner, Warren said, include wealth building, tax benefits, self esteem, privacy, and a sense of community. Some of the disadvantages include paying high property taxes, fluctuating home values, and homeowner association requirements.
On many occasions during the evening, the presenters mentioned the importance of reading and understanding any loan documents before signing, and the fact that your credit counselors should offer all alternatives available for your particular transaction. ‘As a homeowner you have financial commitment,’ said Warren. You better make sure you know what it is.
WHATT plans to host similar community education workshops regularly, every six weeks.
Housing Opportunity List
WHATT wants to add families and individuals interested in owning or renting workforce housing to its Workforce Housing Opportunity List. With contact and income information, WHATT will notify those on the list of housing opportunities as they become available. To sign up, contact Tom Ballou at 530-587-7567 or tom@whatt.org.
