Don't Get the Cart Before the Horse!

Manytimes potential homeowner's get caught up in the excitement of finding their dream home only to find they can't afford it. You can imagine their disappointment finding they can't qualify for the mortgage on the home they have spent weeks and months looking for.

A similar situation arises when potential buyers find a home and then ask the question -- "Is financial assistance available?" If a buyer is looking for financial assistance, the time to do it is PRIOR to finding the home.

Typically qualifying for financial assistance involves several steps.....approval of the person, approval of the property, and awarding of the grant. The person needs to apply for the assistance, have their eligibility verified, attend training of some sort, and finally approval. The process may take a couple of months. Then the property has to qualify --- the price must be within certain guidelines, it must pass inspection(s), and finally the assistance is provided.

In short, it is best to determine the level and type of financing you qualify for before the home purchase. If you qualify for $175,000, you won't be wasting your time looking for homes which are more than that amount. You can also see what your monthly payments will be and have time to see if you are comfortable with that level of monthly expense toward housing.