Pathway to Homeownership: Preparing to Make Owning a Home a Reality

Through our partnership with local organizations, financial institutions and corporations, we provide tools and resources to equip individuals with the knowledge needed to purchase a home.

According to the 2023 Snapshot of Race and Home Buying in America, the U.S. homeownership rate increased to 65.5% in 2021, the rate among Black Americans lags significantly (44%), has only increased 0.4% in the last 10 years and is nearly 29 percentage points less than White Americans (72.7%), representing the largest Black-White homeownership rate gap in a decade.

Black homeowners and renters are more cost-burdened than any other racial group. Less than 10% of Black renters can afford to buy the typical home. What are the basics before buying a home ?

What are the basics before buying a home ?

Buying a home involves several key steps: determine your budget by considering your financial situation and securing mortgage pre-approval; research neighborhoods and property types to find a suitable location and home that meets your needs; hire a real estate agent to help with the search and negotiation process; make an offer based on the property's value and condition, including contingencies like home inspections; secure financing and complete the mortgage application process; go through the closing process, which includes signing documents and paying closing costs; and finally, take possession of your new home and begin homeownership, budgeting for ongoing expenses like property taxes, insurance, and maintenance.

What are things to consider before buying a home?

Before buying a home, consider your financial readiness by assessing your budget, including down payment and ongoing expenses like property taxes and maintenance costs. Evaluate the location, neighborhood, and property type that align with your lifestyle, work, and family needs. Conduct extensive research on property values and market trends to make an informed decision. Prioritize a thorough home inspection to uncover any potential structural or maintenance issues. Secure mortgage pre-approval to understand your borrowing capacity and increase your credibility as a buyer. Think about your long-term goals and whether the property suits your plans for the future, including potential for property appreciation. Additionally, factor in your ability to handle unexpected expenses, like repairs or emergencies, to ensure responsible homeownership.

Furthermore, consider the emotional and lifestyle aspects of homeownership, as it's not just a financial investment but a place where you'll live and create memories. Assess whether buying a home aligns with your personal and family goals, and be prepared for the responsibilities that come with it, such as ongoing maintenance and potential changes in your life circumstances.