Home ownership. It’s the American dream. But is it just a dream? According to industry experts, making that dream a reality may be easier than you think. Think you don’t qualify for a loan? Think again. Flexible down payment and credit repair programs are helping buyers who never thought they’d be able to acquire financing.

“The biggest obstacle for renters and first time homebuyers is the fear of rejection,” says Matt Embroski, sales manager of First Home Builders. “If a buyer is very young, has bad credit or no credit, they assume they’ll get turned down for financing. However there are many options that can help them overcome their financial difficulties.”

As their name implies, First Home Builders specializes in building homes and arranging financing for first time homebuyers. It’s what has made them so successful as evidenced by their ranking as the number one builder in Lee County for two years in a row. According to Embroski, there are several tips buyers can follow to make their first home purchase as easy as possible.

Finding a contractor

If you decide to build your own home, there are several things to look for to make sure your builder is reputable. All builders should be licensed and insured through the city or the county. This information is public record, so check it out before making any decisions.

Visit a potential builder’s facilities – they tell a lot about the kind of operation the company runs. The office doesn’t have to be very large, but neat and professional are recommended. It’s also important to consider the length of time a company is in business.

Find out how many homes your builder has constructed within your price range. Check references and ask for a list of customers who have had the company build similar homes to the one you are considering.

Financing Tips:

1. Pre-qualification – Embroski recommends that all first time buyers visit a lender prior to home shopping to find out what they are able to afford. This is usually a free service available from most lenders. Nothing can be more discouraging than test driving a Cadillac and finding out you can only afford a Focus. Learn your limit and refuse to look at homes outside of your price range.
2. Qualification – Anyone who is age 18 or older can qualify for a loan if they meet the following criteria:
   · $600/week combined income (no restrictions on the number of borrowers)
   · Six months at the same job, or if being transferred from another state, two years employment in the same line of work. The best advice is to stay on the job and make all payments on time. Job-hopping is frowned upon in the mortgage industry.
   · If buyers are 18 and have just graduated from high school, they must have a job and provide high school transcripts.
   · 3 percent down payment (FHA requirement) – if buyers do not have enough capital on hand, there are special programs that allow you to build the down payment into the purchase price or use a gift source.
3. Credit issues – Those with no credit or bad credit can still qualify in many cases. With no traditional credit, alternative credit sources, such as consistently paid utility bills, can be used. In the case of bad credit, assistance from a credit counselor can often turn bad debt into good debt within six months or a year.
4. Mortgage approval – The length of time between application and approval varies. Most lenders will supply a list of necessary documentation. Complete preparation of documents will result in a quicker turn around. Mortgage approval can occur in as little as 24 hours or as long as 30 days.

Building your home

After all of the researching and credit approvals, construction can begin. Although building a home is an exciting venture, understanding the potential delays helps buyers set reasonable expectations. Embroski cautions first time buyers to be patient and not become discouraged with delays.

“It can be frustrating when you’re waiting for a lot to be cleared,” he says. “There are government regulations and paperwork that are required before the first bulldozer can enter the site. This step is just as important as pouring the foundation, but if the buyer doesn’t know what’s happening, it seems like nothing is being done.”

After permits are issued and construction begins, most buyers understand if there is bad weather. It’s obvious that construction can’t continue during a major thunderstorm, but what is less obvious is weather outside of the area. Major snow storms, hurricanes or tornadoes that occur where supplies are manufactured will delay delivery. For instance, if drywall is typically shipped from Indiana and a major storm shuts down the roads and airports, the drywall can not reach its final destination on time. Holidays also play a role in the final completion time of a project.

Be assured that builders do not like delays either and will do everything possible to keep the job moving. Communication and understanding the delays is most important.

Certificate of Occupancy
According to Embroski, one of the most misunderstood issues is the Certificate of Occupancy (CO). A house can appear completed, but until it receives CO, buyers can not move in because builders can not provide proper documentation to lenders to allow the property to close. The CO is issued after all inspections have taken place. There is no guarantee regarding the length of time it will take for CO, so Embroski advises buyers to have adequate plans for accommodations.

“I always tell customers not to cancel rental agreements until a closing date is given by the builder,” he says. “Often customers see a finished house and tell landlords that they’ll be out by the end of the month. If the CO isn’t issued by the County or City, the buyer can not move in.”

One thing that Embroski strongly advises is to ask questions. Don’t ever be afraid to ask if you don’t understand something. Builders are the experts in their industry and they may not realize that they’ve used jargon or that the buyer isn’t aware of everything that is happening. It’s important to never leave a meeting with unanswered questions. Consistent communication will make your first time home building experience enjoyable.