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FINANCIAL COUNSELING Western Catskills Community Revitalization Council Inc. will administer the homeowner-counseling program from their offices located in Stamford, New York. Western Catskills is a 501 C-3 Not for Profit Corporation with over 15 years experience providing funding for and managing 1st time homeowner programs for the low and moderate-income residents, Western Catskills is a HUD Recognized Counseling Agency. Western Catskills has a certified counselor on staff, who has completed certification courses for home ownership counseling and homebuyers education. Western Catskills homeowner-counseling program will be broken into four sessions running for 1˝ hour each with additional time available for individual sessions. The Counseling Program will cover all of the topics listed below. Additionally each applicant will have a one on one session with Western Catskills personnel to discuss individual/personal matters before attending the formal training sessions. The one on one session will be a minimum of one hour to an hour and a half session. 1. Financial Planning for home ownership This will cover determining the affordable price range for the home and the associated costs. A review of the applicants credit history including obtaining a credit report and discussing the various methods of cleaning up outstanding bad credit and enhancing current personal credit record. We will assist each applicant to determine the appropriate level of regular savings and help them to establish the dedicated savings account. 2. Housing Affordability This will cover the process of looking for and selecting a home, negotiating with the Realtor/homeowner and making the formal offer to purchase. 3. Contract of Sale This will cover discussing the purchase contract and the rights and responsibilities of the buyer and the seller. We will discuss the contingencies, which may be a part of the purchase contract and the good faith deposit (binder) that will be required as a part of signing the purchase contract. Additionally we will discuss the benefits to the buyer of having a professional home inspection done by an independent contractor. 4. Budgeting This will cover all aspects of budgeting for home ownership, budgeting for costs associated with the mortgage payment as well as planning a monthly budget to include provisions for continuing a savings plan. 5. Mortgage Loan Application This will cover a review of the mortgage loan application and approval process. We will discuss the credit report and its significance; we will explain the importance of accurate income disclosure and income verification. We will discuss in detail gifted money including gift letters. 6. Down Payment and Closing Costs This will cover discussing the down payment requirements and fees paid at closing to include but not limited to discount points, legal fees, fuel and tax adjustments, escrow accounts, the home owners insurance and mortgage insurance if required, brokerage fees if applicable, application fees, and appraisal fee. 7. The Closing and Closing Documents This will cover an explanation of the closing documents and the obligations of the borrower and will include in depth discussions relative to the preparations for the day of the closing. We will discuss the role of the attorney for the lender, seller, and the borrower, and will discuss the settlement statement in detail to include an explanation of the various fees paid by the seller and the borrower. 8. Mortgage Payment versus Rent This will cover an explanation of the benefits associated with a mortgage payment versus a rent payment, developing equity in the home, becoming a part of the community, the potential tax savings associated with mortgage/interest payments. We will cover the schedule for mortgage payments and the importance of making the payments on time, penalties for late payments and possible foreclosure as consequences of frequently missing payments. 9. Life as a Homeowner This will cover explanations of the importance of proper and timely maintenance of the home including an explanation of the borrowers responsibility to the mortgage holder for such maintenance. Additionally we will discuss methods and procedures for cost accounting/record keeping as relates to the potential for tax consequences and or savings (capital gains tax). 10. Post Costing “Keeping Your Home and Managing Your Finances” - Protecting Your Investment - Getting to know your Home - Home Safety - Saving Energy and Money - Preventive maintenance - Remodeling and Major Repairs - Investing in Your Neighborhood 11. Open Forum This will cover any housing related topics of interest to the applicant/participants and will be conducted as an open forum. We will discuss that counseling will be available on an ongoing basis as individuals needs may arise to include assistance with refinance to consolidate debt, or to take advantage of lower interest rates, and if necessary assistance through our office to mitigate. |
Home Ownership |
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Western Catskills |
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125 Main Street Stamford NY 12167 |
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To contact us: |
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Phone: 607.652.2823 Fax: 607.652.2825 Email: info@westerncatskills.org |
