A home is an investment and a way to build wealth. When you rent, you write your monthly check and that money is gone forever. But when you own your home, you can deduct the cost of your mortgage interest and property taxes from your federal and state income taxes. This will save you a lot each year, because the interest you pay will make up most of your monthly payment for most of the years of your mortgage. In addition, the value of your home may increase over the years, which builds equity (savings). Finally, you'll enjoy having something that's all yours – a piece of the American Dream.

 

 

Well, that depends on a number of factors, including the cost of the house and the type of mortgage you get. In general, you need to come up with enough money to cover four costs:

 

 

When you make an offer on a home, your real estate broker will put your earnest money into an escrow account. If your offer is accepted, the earnest money will be applied to the down payment or closing costs. If your offer is not accepted, your money will be returned to you. The amount of your earnest money varies. For example, if you buy a HUD home, your deposit generally will range from $500 - $2,000.

 

The more money you can put into your down payment, the lower your mortgage payments will be. Some loans require 10-20% of the purchase price. That's why many first-time homebuyers turn to HUD's FHA for help. FHA loans require only 3.5% down.

 

Pre-closing costs can vary dramatically depending on the type of home being purchased. An appraisal and home inspection typically range from $300 to $600 each.

 

Closing costs average 3-4% to 5-6% for a typical first time homebuyer if financing is through a government guaranteed loans program like FHA or CHFA. These costs cover various lender fees and other processing expenses. When you apply for your loan, your lender will give you an estimate of the closing costs, so you won't be caught by surprise. If you buy a HUD home, HUD may pay many of your closing costs.

 

To start, you can use these simple mortgage calculators to see how much mortgage you can afford. If this amount is significantly less than the cost of homes that interest you, then you might want to wait awhile longer before purchasing. But before you give up, why don't you contact one of BNT’s housing counselors for a one-on-one session? We can help you evaluate your loan potential and walk you through the process of getting pre-qualified for a loan. That means you go to a lender and apply for a mortgage before you actually start looking for a home. Then you'll know exactly how much you can afford to spend, and it will speed up the process once you do find the home of your dreams.

 

 

You may walk-in for more information, but homeownership counseling sessions are by appointment only.  Call 203-332-7977 to make an appointment

 

 

No.  Classes are only open to first-time homebuyers which is defined as someone who has not owned a home within the past three years.

 

 

No.  All services are provided free of charge.

 

 

BNT’s comprehensive class will give you information on the homebuying process from “soup to nuts.”  This includes info on budgeting and credit, shopping for a home, purchase contracts, types of first time homebuyer mortgages including CHFA and FHA, down payment and closing cost assistance programs, property inspections, appraisal and insurance, the mortgage closing process, steps to protect your largest asset – your home, foreclosure prevention, and predatory lending.

 

 

No.  However some first time homebuyer loan programs, such as CHFA, along with all Down Payment Assistance Programs, require proof of homebuyer education from a HUD Certified Housing Counseling Agency such as BNT.

 

 

Yes, you can use it to purchase anywhere in Connecticut.  The certificate is good for 1 year.

 

 

We provide classes on Foreclosure Prevention and Predatory Lending, but do not provide one-on-one Foreclosure or Loss Mitigation Counseling for folks who are currently in distressed mortgages.  We refer such inquiries to other housing counseling agencies who have trained foreclosure counselors on staff.