The Hispanic homeownership rate increased to 48.6% in 2022, marking eight years of consistent homeownership growth for the demographic.
Despite a tight housing market and affordability challenges, the Hispanic American community created 349,000 new homeowners last year, marking one of their largest single-year gains over the past decade.
Preparing for Homeownership
Improving Your Credit Score
A borrower’s credit illustrates their payment history and helps lenders predict the chances of them paying on-time in the future, which is why it’s important to aim for as high of a number as possible when it comes to scoring.
Your credit score is made up of these five factors:
- Your payment history
- Your borrowing habits
- Your track record
- Your recent attempts to secure more credit
- Your experience with different credit types
When you’re buying your first home, credit scores open doors. Stronger credit gives access to more mortgage products and lower mortgage rates.
However, it’s important to know that there are a variety of solutions for borrowers with no or low credit scores. Speak with your trusted mortgage professional to determine the best strategy for you and your family today.
Saving for a Down Payment
A down payment is the amount of money a borrower brings to the transaction. While many borrowers believe that they must provide a down payment that is 20% of the purchase price, different loan programs can accommodate down payments as low as 0-3%.
Get Pre-Approved for a Mortgage
A lender will take an in-depth look at your finances to determine the exact amount they can lend you during a mortgage pre-approval.
Secure a Full Credit Approval With Home Buyer’s Edge
Home Buyer’s Edge is the full credit approval program that gives buyers the opportunity to have every aspect of their credit profile verified by a mortgage loan underwriter.
Verifying your income, assets, and credit shows that you’re a more qualified buyer, and you’ll have a competitive advantage over other bidders by providing the strongest offer.
Common Misconceptions About the Mortgage Process
Misconception #1: You Need a 20% Down Payment to Buy a Home
Saving up a 20% down payment is a huge obstacle for many borrowers. FHA and VA loans allow buyers to purchase a home with as little as 0-3.5% down.
Misconception #2: You Need Perfect Credit
While good credit can help you secure more favorable terms on your loan, it’s okay if your credit score isn’t perfect. Your loan officer can help you find realistic ways to improve your credit score while finding loan programs that fit your needs.
Misconception #3: If There’s a Language Barrier, You’re Going to Have a Hard Time Buying a Home
We are proud to assist and empower all of our borrowers during the mortgage process, which is why we’re committed to overcoming any and all communication barriers. Many of our team members are bilingual, so there is no need to worry about any potential language barriers here.
Misconception #4: If You Don’t Have a Social Security Number, You Can’t Buy a House
Some Hispanic borrowers may not have a Social Security number. With an Individual Taxpayer Identification Number (ITIN), borrowers are eligible to apply for certain loan products without a Social Security number.
Speak with your trusted loan officer today to determine the best loan products and solutions for you and your family.
Closing Thoughts
The Hispanic American community will remain critical drivers to U.S. homeownership growth, given their labor force participation and growing population rate.
Purchasing a home is one of the biggest financial commitments anyone can make. Taking the time to become familiar with the mortgage process while working with a professional you can trust will always ensure a successful transition to homeownership. Give us a call or visit us online to take the first steps towards purchasing a home for you and your family today.