Applicant Page 3: Important Considerations

Hey, page 3 already -- Nice Work!

The items on this page will take a little more of your time, but are important for ensuring homeownership is right for you. This page also includes the first program document that you will work on and will upload to a digital file when completed.

3.1. Important Considerations

How good or bad is owning a home for your financial future? We've all been told over and over how owning a home is a wise investment, and as a result we often assume that owning is good, matter the cost and without consideration for our current situation.

Homebuyers are required to read through the Important Considerations Handout, with special attention to the following concepts:
- Costs involved with purchasing a home;
- Home equity and actual growth of your asset;
- Commitment to successful term (years) of ownership.

3.2. Loan Amortization

A loan amortization schedule shows the amount of your monthly payment that is applied to the reduction of your borrowed loan (the loan principal), versus the amount that applied to pay loan interest and other costs.

As explained in the previous Important Considerations Handout, very little of your early payments actually help build equity for you due to the large portion of the payment that is applied to your loan interest.

Take a look at the Amortization Schedule for a small $63,000 loan. This schedule only includes payments to the lender for the loan principal and interest, and does include additional borrower payment obligations including property taxes and home insurance.

3.3 Home Maintenance Costs

Home mortgage payments are often less than what monthly rent is. But often homebuyers fail to recognize the major costs involved in maintaining a home, from replacement of old appliances to major building repairs that can cost thousands of dollars.

Review the Home Maintenance Costs handout, which provides a brief introduction to the costs of home maintenance. Note the savings commitment required by homebuyers in our program. This topic is reviewed in greater depth later in the process.

3.4. Initial Processing Checklist

Head's up! This section includes a document that you will complete and turn in.

Download the Homebuyer Initial Processing Checklist form. You can either print this form or complete digitally. This form will be submitted to the Winnebago Homebuyer Program upon completion of the first four (4) Homebuyer Applicant Digital pages, affirming that you have reviewed the key documents and requirements outlined in these initial pages.

Use the information found on the pages you have already completed, as well as Applicant Page 4 to answer the questions with the Homebuyer Initial Processing Checklist form.

After you have completed page 4 and have filled out the Homebuyer Initial Processing Checklist form, save this document to your digital file.

If you do not have a digital file yet, email the Winnebago Homebuyer Program for directions. Digital files are typically set up within 10 days of receipt and confirmation of a homebuyer application, with directions emailed to you.

Next up - you're going to start uploading your documentation to enable a review of your income eligibility: Page 4 - homebuyer documents.

Photo by Javier Allegue Barros