The month of June has been designated as homeownership month, a time when we recognize the importance of homeownership in strengthening our communities. Owning a home is an essential part of the American dream, and homeownership provides families with economic security by building wealth over time. For this reason, it is one of my priorities to ensure that families across Southwest Virginia have access to the resources which assist them to achieve and maintain homeownership.

The theme of Homeownership Month this year is “Back to Basics.” In this time of uncertainty in the housing market, the Federal Housing Administration suggests that potential homebuyers go back to the basics to better understand the home buying process and to become informed of the resources available to assist homeowners.

The U.S. Department of Housing and Urban Development suggests nine basic steps to buying a home:
• Figure out how much you can afford. You should take your income, monthly expenses, down payment and the interest rate into consideration. A calculator tool to help you figure out how much you can afford to spend on a home is available at www.hud.gov/buying.
• Know your rights: In order to avoid predatory lending, you should read up on your rights as a borrower, such as your right to question the lender about additional fees and charges.
• Shop for a loan: You can save money by doing your homework. Investigating the options with several lenders, comparing costs and interest rates, and negotiating can help you get a better deal.
• Learn about home buying programs: The Federal Housing Administration and the Virginia Housing Development Authority offer loan programs for first-time home buyers.
• Shop for a home: Consider several options before deciding on which home to buy.
• Make an offer: Consult with a real estate agent and do not be afraid to negotiate with the seller.
• Get a home inspection: Make your offer contingent on a home inspection. An inspection will inform you of the condition of the home and help you avoid buying a home that will need major repair work.
• Shop for homeowners insurance: Most lenders require that you have homeowners insurance. Be sure to compare several different insurance providers for the coverage that best meets your needs.
• Sign the papers: Be sure to read every document before you sign.
Last month, the U.S. House of Representatives approved comprehensive housing legislation which will assist families facing foreclosure in keeping their homes, assist families avoid future foreclosures, and assist first time home buyers purchase homes successfully. The measure includes $11 billion in tax benefits, one of which is a tax credit for first time home buyers, and expands the mortgage refinancing resources available to those in danger of losing their home.
More information on the resources available for Southwest Virginia homeowners, including information on programs to assist homeowners maintain and improve their homes, is available at www.hud.gov. Additionally, the Virginia Housing Development Authority, the Commonwealth’s mortgage finance agency, provides resources to help low and moderate income Virginians attain quality affordable housing. More information can be found at www.vhda.com.

Rick Boucher is Congressman for the 9th District of Virginia, which includes the New River Valley. You can catch his Capitol Commentary regularly on newrivervoice.com.