If you think that you may be eligible for one of HHP’s projects, there are several important things to do to get ready to apply for one of HHP’s homeownership opportunities. Even if you don’t think you’re eligible for one of HHP’s homes, some of this information will still be helpful.
- Start holding on to your income documentation. That means don’t throw out W2s, bank statements, or paycheck stubs. These are things that both HHP and a mortgage lender will require you to provide.
- Run your credit report and learn your credit score. You are entitled to a free credit report from all three (3) bureaus annually. You can visit annualcreditreport.com to access your credit report. You can also work with a credit-counseling agency, such as Clearpoint Credit Counseling to access and understand your credit report and score.
- If you have a lot of debt or a low credit score, start working to address these. These are factors that a mortgage lender will use to determine whether or not you can receive mortgage loan financing and they may also affect the interest rate you are offered. Clearpoint Credit Counseling also provides credit counseling and debt management education.
- If you have minimal debt or a good credit score, don’t make any big purchases or open new credit lines if you plan to apply for a mortgage loan in the near future. These can negatively impact your credit score and debt profile.
- Be aware that if you have large sums of money going in and out of your bank account you will be asked by HHP and by your lender to account for these. If you are receiving gift funds for a down payment from family or friends, it is better to have them write a gift letter and wire the money directly at close of escrow.
- Complete a first-time homebuyer counseling course. HHP’s buyers are required to complete a live or virtual, HUD approved, 8-hour counseling course, but we recommend this to anyone considering homeownership. This is a wonderful opportunity to learn about the home buying process from start to finish. The below providers offer these courses for no to minimal cost: