Dreaming of owning a home? Here's how to get started
Edu-Series can take away the mystery of the home buying journey and provide you with actionable guidance. The free series, available in English and Spanish, reviews topics from preparing your finances to making an offer on a home to applying for a mortgage. In the series, you'll hear from a firsttime homebuyer as he shares his experience with using down payment and closing costs programs to help him realize the dream of homeownership.
Answer the Question: Are You Ready To Buy?
First-time homebuyers may be holding off for the "right time," but there is no such thing because home buying is such a personal decision. While there is no secret formula to assessing emotional and financial readiness, these resources can help you determine how close you are to becoming a homeowner and equip you to move forward. After all, the more informed you are about the home buying process, the better prepared you are to find the best options.
Assess Your Finances
Not sure where to start? The Homebuyer Insights found 80 percent of firsttime homebuyers needed help understanding what they could afford. Begin by asking yourself, "How much should I borrow?" instead of, "How much could I borrow?" This helps you focus on the amount that comfortably fits your budget. Then, a general rule of thumb is to multiply your monthly income before taxes by 28 percent or use an online affordability calculator to do the math. The resulting dollar amount is typically how much a manageable monthly payment might be, including taxes, insurance, and private mortgage insurance.
Research Affordability Resources and Programs
If you're concerned that you may struggle with the upfront costs, be sure to do your homework to find programs and resources which provide financial support and guidance for affordable and sustainable homeownership. For example, Bank of America's Community Homeownership
Commitment offers specific solutions for modest-income and first-time homebuyers, including affordable mortgages, grant programs, resources and expertise.
Thanks to low interest rates and lending programs tailor-made for lowand moderate-income and first-time buyers, homeownership may be well within your grasp. Take time now to check out your options and determine whether Bank of America's mortgage programs could help you realize your dream of becoming a homeowner.
* Qualified borrowers must meet eligibility requirements including, but not limited to, being owner occupants, meeting certain qualifying income limitations and purchasing a home within a certain geographical area. Minimum combined loan-to-value must be greater than or equal to 80%. The America's Home Grant Program is a lender credit. Program funds can only be used for nonrecurring closing costs including title insurance, recording fees, and in certain situations, discount points may be used to lower the interest rate. The grant cannot be applied toward down payment, prepaid items or recurring costs, such as property taxes and insurance. Borrowers cannot receive program funds as cash back. Maximum income and loan amount limits apply. The home loan must fund with Bank of America. Bank of America may change or discontinue the America's Home Grant Program or any portion of it without notice. Not available with all loan products, please ask for details.