It is important to emphasize that there has been significant growth in the number of Latino immigrants purchasing their first homes in recent years. According to the US Census Bureau, as of 2021, Latino homeowner households in the United States reached a historical figure of 8,805,000, with an average property purchase price of $657,000. Furthermore, the report indicates that in 2021, 40.8% of Latino adults aged 45 years or younger were ready to buy a house in the United States. If you have some savings in your account and are considering investing in real estate, you might wonder how to start the process and what steps you need to take.
In this article, we will answer the six most frequently asked questions among Latinos in the United States about how to buy a house:
- What is the first step I should take to buy a house?
- What is a real estate agent, and where can I find one?
- What is a home loan?
- Are there government assistance programs for first-time homebuyers?
- What are my rights as a homebuyer in the USA?
- Where can I get help to start the process as a first-time buyer?
What is the first step I should take to buy a house?
According to the US Department of Housing and Urban Development, if you want to buy your first house, the first thing you should do is organize your ideas about what you are looking for in your first purchase and what is best for you, your family, and your budget. At that moment, you should ask yourself the following questions:
- What am I looking for in a house?
- What should the house have?
- How many bedrooms should the house have?
- Where do I want to have my first house?
- How much money do I have available?
- What is my budget?
These and other questions will help you have a better idea to present to your real estate agent.
What is a real estate agent, and where can I find one?
After organizing your ideas, you should look for a real estate agent. A real estate agent will assist you with home-buying, including finding a property that fits your preferences and budget. Additionally, they will help you by referring you to different banks to start the home loan process if necessary.
To find a real estate agent, visit Realtor.com by clicking HERE. You can search for an agent in your area from various companies.
Important: If you are uncomfortable with an agent or dissatisfied with their assistance, you can look for another one. Only settle for an agent if you feel at ease with them.
What is a home loan?
A home loan is the option banks offer to individuals interested in buying a home but don’t have the necessary amount of money. Banks provide these loans with options for monthly payments, called mortgages. When agreeing with a lender to purchase your house, it is important to have these points clear, according to the Consumer Financial Protection Bureau:
- The loan amount
- The interest rate and associated points
- Loan closing costs, including lender fees
- The Annual Percentage Rate (APR)
- The type of interest rate and whether it can change (Is it fixed or adjustable?)
- The loan term or the time you have to repay it
- If the loan has other risk features, such as prepayment penalties, balloon payment features, interest-only features, or negative amortization
Furthermore, you should understand that banks often offer a higher loan amount than you can realistically afford. Therefore, before accepting the loan, it’s important to consider what you can truly afford to pay monthly. In your budget, don’t forget to include expenses for home insurance, state taxes, and repair costs in case anything gets damaged in the house.
Are there government assistance programs for first-time homebuyers?
Yes, there are government assistance programs for first-time home buyers. Most of the time, your lender will help you find any available assistance programs that you can benefit from to make the purchase. If your lender does not show interest in helping you access these programs, you always have the option to look for another one.One of these programs, backed by the Federal Housing Administration (FHA), are “FHA Loans,” which provides mortgage credit to certain buyers. Click HERE for more information.
What are my rights as a homebuyer in the USA?
It is important to know that your rights as a homebuyer are protected by the Fair Housing Act (FHA). This law applies to all residential real estate transactions, including loans to buy, build, repair, or remodel homes.
The Fair Housing Act makes discrimination illegal based on race, color, religion, sex, national origin/nationality, disability, or family status. Family status refers to your family composition, including whether your household includes minors under 18 years old or pregnant women.
Therefore, as a Latino or Hispanic of any race or color, you cannot be discriminated against when you buy a house. For more information, click HERE.
Where can I get help to start the process as a first-time buyer?
If you need more help to start your process as a first-time buyer, call 888-995-HOPE (4673). The Making Home Affordable information page has a phone line with bilingual experts who can answer your questions.
Additionally, you can call the Department of Housing and Urban Development (HUD) toll-free line at 1-800-569-4287.Â
Buying a house in the United States may sound intimidating, but it’s essential to know that there are programs that can help make the process easier. Follow these steps and leave behind any fears or myths you may have heard about home buying. Remember that it’s always important to educate yourself, ask questions, and only sign any documents after reading and consulting with a trusted expert. With these tips, I’m sure you’ll be able to become a homeowner in the United States in less time than you think.
