Home/Auto Buying Assistance - Are You Prepared?

Homeownership Counseling

Sometimes it’s difficult to know where to start when you’re looking to purchasing a home. Given the bewildering array of mortgage products available and the potential for falling victim to predatory lenders, there is a clear need for pre-purchase homeownership counseling that will help families successfully navigate the mortgage market.

Finding a home you like is just the beginning. Homebuyer education and pre-purchase counseling help prepare the first-time homebuyer for the home purchase process and their responsibilities of homeownership. Our Housing Counselors specialize in preparing people in advance to learn the necessary steps involved in becoming a homeowner. This process will save you time, unnecessary worry and money.

Our Counselors will help you:

• Understand homeownership and prepare a home purchase plan
• Analyze your financial situation to determine how much house you can afford
• Discuss advantages and disadvantages of renting vs. owning a home
• Determine creditworthiness – credit scoring
• Help prevent predatory lending practices

The Eight Steps to Homeownership:

We encourage you to follow these eight steps in order, and as completely as possible, to ensure that your loan and home are the best possible fit for you and your family and that your homebuying experience is positive and without stress.

• Education - Attend a homebuyer education seminar.
• Credit History - Obtain a copy of your credit report. Address any issues and correct any errors in the report as necessary.
• Budget - Do a personal budget and determine how large a monthly payment you can afford and comfortably pay.
• Research - Research first-time homebuyer and down payment assistance programs that you may qualify for.
• Pre-Approval - Interview various lenders that offer the assistance programs that you might qualify for.
• Your Priorities - Set realistic priorities for your new home including the neighborhood, number and type of rooms, size of house, etc.
• The Search - Interview experienced real estate professionals that have experience working with first-time homebuyers and decide who to work with.
• Welcome Home - Select and purchase your new home. Start creating wonderful memories in your new home.

Auto Buying

What is it about the thought of visiting a car dealer's showroom that summons up fear and anxiety? Is it the fast-talking salesperson or the negotiation process? When you're looking to purchase your next car, our Auto Buying Assistance Program will help you learn the "tricks of the trade" in the car-buying process. When you overspend on transportation, you have less money available for saving and wealth-building. If you get to the dealership and feel overwhelmed or confused - leave the office immediately and call us. You can even call us right from the dealership if you need any advice or information. Our certified Counselors will work with you to help eliminate the guesswork and confusion when it comes to purchasing a car.

Our Counselors will help you:

• Decide how much you can afford to spend on your new car purchase
• Understand the pros and cons of both buying and leasing
• Learn how to comparison shop and avoid rip-offs
• Find out the history of a vehicle
• Learn buying tips and negotiation strategies to get the best deal
• Determine your used car trade-in value
• Calculate taxes, insurance, and state registration fees

Before Visiting the Dealership:

• Based on your needs and budget, determine a realistic price range for the auto you are thinking of buying.
• Know the difference between buying and leasing an auto.
• Know your credit record and that it may affect the finance rate you are able to secure.
• Compare annual percentage rates and financing terms from multiple sources such as banks, finance companies, and credit unions.

Trading in or Selling Your Car:

Before you put your car up for sale:
• Be sure to do some research first. Prospective buyers may try to give you less money for your car than it is actually worth.
• Know your car’s value, which is the standard market price you can expect it to be worth if you sold it privately. This is commonly called the blue book value. To find your car’s blue book value, you can buy a blue book for used vehicles at most bookstores or visit www.kbb.com.
• Have your car detailed and make sure any major mechanical problems have been repaired. Prospective buyers will be willing to pay more for cars that are in better condition.
• Have your records in order. This shows prospective buyers that you have taken care of your car and are prepared.
• Be ready to negotiate. Most buyers will start out with a low offer on principle. If they see that you have done your homework and are knowledgeable about your car, however, they may be willing to raise their offer.

Before you trade your care in for a newer vehicle:
• Be sure to do some research first. The dealership may try to give you less money for your car than it is actually worth.
• Know your car’s value, which is the standard market price you can expect it to be worth. This is commonly called the blue book value. To find your car’s blue book value, you can buy a blue book for used vehicles at most bookstores or visit www.kbb.com.
• Have your car detailed and make sure any major mechanical problems have been repaired. Dealers will be willing to offer more for cars that are in better condition.
• Have your records in order. This shows the dealer that you have taken care of your car and are prepared.
• Be ready to negotiate. Most dealers will start out with a low offer on principle. If they see that you have done your homework and are knowledgeable about your car, however, they may be willing to raise their offer.

When Shopping for an Auto at the Dealership:

• Stay within the price range you can afford.
• Negotiate your finance arrangements and terms.
• Understand the value and price of optional products such as extended service contracts, credit insurance, or guaranteed auto protection. If you don’t want these products, don’t sign for them.
• Read the contract carefully before you sign it.

After completing the auto purchase or lease:

• Make your payments on time. Late or missed payments incur late fees and appear on your credit report, which can impact your ability to get credit in the future.
• If you financed the auto, be aware that the dealership (or a bank, finance company or credit union that purchases the contract from the dealership) holds a lien on the auto title (and in some cases the actual title) until you have paid the contract in full.
• The dealership may retain your finance contract, but usually sells it to a third party, such as a bank, finance company or credit union, at a wholesale rate (often called the "buy rate"). The bank, finance company or credit union that buys your contract will service the account and collect payments.

  Call our Counseling Center at 1-800-351-4195 for assistance.