Seminar offers home buying and ownership tips

By: John Kozlowicz
Staff Writer

Held February 27^th at Majestic Pines Hotel, a Homebuyer Information Seminar coordinated by the Ho-Chunk Housing Authority first-time buyers and current owners information regarding all aspects of home ownership.

Explaining, “that it’s easier to purchase a home than to get a credit card” and “you don’t have to be making a lot of money,” Justine Rufas, a Rural Development Specialist with USDA, took those attending through a step-by-step explanation of the home ownership process.  She explained that throughout the process decisions have to be made and it is important that the buyer have the information needed to make the best decision.

The first question that a potential buyer needs to ask is, “am I ready?”  For most people buying a home is the largest purchase of their lives and Rufus stressed the need to “be honest with yourself” in judging whether or not home ownership is attractable and affordable.  If the answer is “yes”, she said, “don’t let anyone tell you what you can afford.”  She offered some tips that once the decision is made, can make the process run a little smoother.

She stressed the importance of having good credit.  Noting that a bad credit rating would not eliminate the chances of owning a home but could result in having to pay a higher interest rate, she suggested that everyone pull a credit rating on himself or herself at least once a year.  Some ratings are free on the Internet, others can cost between $25-30.  Because sometimes these ratings list bills that have already been paid, Rufus stated it is necessary to check the rating and clean up any discrepancies.  For those with no credit history, she suggests taking out small loans and repaying them as a means of establishing good credit.

Rufus advises when the decision to buy a home has been made, the buyer contact lenders before looking at homes.  Aware that most buyers find a home and then seek a lender, Rufus said that there are 200 types of home loans available and a buyer needs to take the time to research what type of loan is best for them.  Because no lender can offer every loan product, she said, “they will try to sell you what they sell.”  If an offer has been accepted and the buyer needs to obtain immediate financing, Rufus warns, “that you may not get the best deal.”  As a means of “comparison shopping,” she urges that the buyer ask about the total cost of the loan; including closing costs, points, appraisal fees and other costs.  Though lenders are required by law to reveal the total costs, Rufus explained that there are still many things that people don’t know and she stressed the importance of learning and asking questions prior to signing a contract.

After agreeing on a price and securing a loan, Rufus stated it is important to have an independent inspector check the home before closing.  For $250-300 a 3^rd party inspector will examine the home, sometimes finding major problems that cause a buyer to change his mind, or minor deficiencies that when working with the seller cost result in a lower selling price.

Just before closing, she advises taking one last look at the home to make sure that everything the seller agreed to leave is left, and just as important, that unwanted items are taking away.  “Why should you pay to have an unwanted appliance left by the seller taken away?” she asks.

Once in the home, she stated that it was important to take care of and upgrade the home when needed.  Often overlooked but critical is the need to “upgrade your insurance regularly.”  Because most home values rise with inflation, Rufus stated it is important that should a disaster strike, “insurance covers at today’s costs, not yesterday’s value.”

Noting, “that everyone deserves to own a home,” she concluded that if a buyer takes the time and does the work needed to protect him or her, the entire process really isn’t so difficult.

Following lunch local lenders met one-on-one with participants, taking questions on what they have available.