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How Can Agents Help Low Income Buyers
Buying a home shouldn’t be a distant dream. If you want to buy a home for your family or even for yourself, there are options available if you have a low income. Royal Canadian Realty knows how to help you reach for those home-owning dreams and here are some things you can do, and an agent can do, to help low-income buyers successfully get a new home.
Saving up for a down payment is often the first obstacle to overcome. This is usually because a low income doesn’t leave much left over after paying bills on time. It can be difficult to keep your credit good and have a low enough debt-to-income ratio to qualify for a good loan.
What can you do?
Pay off your debt: This is usually the hardest thing to do. You may be able to consolidate your debt to make payments easier. Doing this usually gives you a lower-interest loan with payments that are easier to make.
Get a co-signer: A co-signer can be helpful because the co-signer’s financial information is taken into consideration as well as yours. Your co-signer will be expected to make payments on your mortgage if you begin to miss payments or become unable to pay.
Have a budget: Make a budget. Remember to include home owning costs like repairs and maintenance in the month budget. It is important to know how much you can afford each other for our home, and not take on a mortgage that is too big. Having a budget will also help you save for a down payment.
Work on having a good credit score: improving your credit score will save you some money when you get a mortgage, as you will be offered better rates on interest. You should try to have a score of as least 580-620. Mortgage approval is easier when you have a good credit score. Try to pay bills on time, as that will help your score.
Look at available assistance programs: Your lender and agent should be able to suggest some programs available to low-income homebuyers. There are even government programs available.
So, what can an agent do?
Use experience: An agent should have experience finding qualifying homes in the price range comfortable for low-income clients. The agent’s experience will be reflected in the creativity and resourcefulness when finding lenders and homes, as well as encouraging homebuyers to consider options they may not have done yet.
Know programs available: An agent who is experienced, and sensitive to buyers in this situation, will have knowledge of opportunities, government-mandated, and payment assistance programs. These programs were designed to help low-income buyers achieve the dream of owning a home. The programs are designed to offer payment and interest rates that are usually below market. There are discounts on mortgage insurance and low to no down payment options, with down payment assistance sometimes available. There may be requirements for these programs, such as the buyer must live in the home.
Find the right broker: An agent should know the budget of their client and if the client can qualify for a loan. The agent can then find the right lender or broker to work with the client, saving time and money for all. Lenders have resources to help low to medium income buyers able to buy a home.
Know the market: knowing market trends for housing for low-income buyers is important. An agent who knows the local market will be able to answer questions honestly and fully, allowing their clients to make the best choices.
The agents at Royal Canadian Realty welcome all homebuyers to contact us and ask questions. Let us set you on the path to home ownership with the confidence and experience of our realty. Become a home owner today.