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GREENPATH DEBT SOLUTIONS OFFERS COST-SAVINGS TIPS FOR
FUTURE AND CURRENT HOMEOWNERS IN RECOGNITION OF
NATIONAL HOMEOWNERSHIP MONTH
Farmington Hills, Mich. June 12, 2003 - GreenPath Debt Solutions offers money and credit management tips to future and current homeowners in recognition of June as National Homeownership Month 2003. Last year, GreenPath conducted 1,058 presentations and 29,552 housing counseling sessions to current homeowners, including delinquent and default advice and reverse equity mortgage information.
"A home often serves as the foundation on which many family memories are constructed," said Jane McNamara, GreenPath, Inc. president and CEO. "Accordingly, GreenPath works diligently to assist consumers to navigate through economic turbulence, helping future and current homeowners pursue and preserve their piece of the American Dream."
GreenPath Debt Solutions has been a HUD-certified housing counseling agency since 1967. GreenPath counselors are experts at helping consumers resolve financial problems and negotiating forbearance agreements with their creditors to prevent home foreclosure.
GreenPath offers tips to help individuals and families maintain financial stability and credit worthiness whether purchasing or maintaining a home.
Money and Credit Management Tips for Homebuyers:
· Check credit reports and verify accuracy. Obtain a copy of your credit report from major credit bureaus at least once a year through: Equifax, www.equifax.com; Trans Union, www.transunion.com; Experian, www.experian.com. Credit reports and credit scores can also be obtained and reviewed through GreenPath at www.greenpath.com.
· Establish a good payment history. Pay all bills on time for six to 12 months - preferably two years - to qualify for a mortgage. Late payments of any bills, including utility bills, can disqualify you from some loan programs and increase the interest rate on others.
· Lower your debt load. Lenders compare your debt-to-income ratio to determine the amount of money you can borrow for a loan. Excessive debt will lower your credit score and reduce your buying power.
· Build a savings account. Up-front costs associated with buying a home typically include a down payment of at least 3 to 5 percent. Also consider costs for closing fees, moving and furnishing. It's better to overestimate these costs than to underestimate them.
· Consider attending a homebuyer education seminar. Understanding the home-buying process can make purchasing a home less stressful. Learning about different home-buyer programs, loan programs, and required versus unnecessary fees could save you money. A GreenPath counselor can help answer these types of questions.
Money Saving Tips for Homeowners
· Update your monthly budget. New homeowners can expect to have more, and sometimes higher, monthly bills, such as insurance, taxes, mortgage, utility bills, lawn care and unexpected repairs. Take a moment to ensure that all new expenses are being documented in your monthly budget plan with other debt obligations. Compare spending needs with your monthly income to avoid over-estimating your ability to pay under-budgeted debts.
· Look for utility cost savings. Call or check the website of your local utility companies for tips to cut down on utility bills or schedule an energy efficient home audit with your utility company to get first-hand advice on improving home efficiencies and reducing expenses. Be sure to ask about "budget plans" that allow customers to spread fixed utility payments over a year.
· Save for home furnishings. When planning for window treatments, wall coverings, new furniture or appliances, you may be tempted to overextend credit. Instead, add these household items to your budget plan. Then save for each purchase and shop around for sales or the best buys. If credit card use is necessary, limit your charges to one or two cards and pay off card balances in full or as quickly as possible to minimize interest charges and fees.
· Take advantage of annual income-tax credits. Many first-time homeowners are eligible for tax credits or exemptions sponsored by state and local governments. All homeowners can benefit from mortgage interest and tax credits sponsored by the federal government. To review your eligibility, contact a certified public accountant or tax professional. You can also visit websites for Tax and Revenue offices of your local and state governments for their requirements. For federal tax offerings visit the Internal Revenue Services (IRS) website at: www.IRS.gov or the HUD website at: www.hud.gov.
Seek help when you begin to experience financial difficulties. Trying to solve your credit and financial problems alone can be overwhelming, but help is available through GreenPath which offers free and affordable assistance. Whether seeking housing counseling or financial management assistance, GreenPath offers certified counselors trained in money management services who will examine ways to solve current and future financial problems.
Established in 1961, GreenPath Debt Solutions is also known as Consumer Credit Counseling Service. With 38 branch offices, the non-profit company provides customer-focused debt management solutions and financial education programs, enabling people to enjoy a better quality of life. GreenPath is fully accredited by the Council on Accreditation and is a member of the National Foundation of Credit Counseling. For more information, visit GreenPath's web site at www.greenpath.com or call 866-648-8122.
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