Melvin Feller Discusses Ways for Renters to Become Homeowners.

Melvin Feller Discusses Ways for Renters to Become Homeowners.

Melvin Feller Business Ministries Group in Burkburnett and Dallas Texas and Lawton Oklahoma. Our mission is to call and equip a generation of Christian entrepreneurs to do business as ministry. We provide workshops and resources that help companies discover how to do business God’s way. When the heart of a business is service rather than self it can be transformed into a fruitful business ministry earning a profit and being of service to the community and their customers. Melvin Feller is currently pursuing another graduate degree in business organizations.

Ways for Renters to Become Homeowners by Melvin Feller

The arrival of spring signals the start of home buying season, and many young apartment renters are wondering if they can afford a house.


Home ownership has risen steadily in recent years because mortgages have been available at relatively low interest rates, currently about 7 percent for a fixed-rate loan. Nearly 68 percent of all

American families own their own homes, according to U.S. Census data.
Still, qualifying for a mortgage can be daunting. However, there are ways that first-time buyers — or even repeat buyers — can make the borrowing process easier, experts say.

Ways for Renters to Become Homeowners by Melvin Feller

It may seem obvious, but would-be buyers should consider whether purchasing a home is compatible with their lifestyle.


If you are going to be moving a lot with your job or if you don’t want to be bothered with things like maintenance, then it might make sense to continue renting.


One of the much-touted advantages of home ownership is that people can deduct their interest payments and real estate taxes when calculating their income taxes. However, I caution against letting potential tax deductions become the deciding factor in whether to buy.


Tax accountants are always badgering young people to buy something because they can save on income taxes; it is true that you can. Nevertheless, if you have every bit of your money tied up in your house, then you will not have much of a life.’’

Ways for Renters to Become Homeowners by Melvin Feller

Even before you go house hunting, you should educate yourself about the mortgage process. The Internet is loaded with information about how to buy a home and where to get a mortgage. There are also calculators to help people determine how much they can afford to spend.


Besides the Mortgage Bankers’ site at www.mbaa.com, some other good places online to get “how to’’ guidance include the Life Advice topics at www.metlife.com and the “Home Buying 101’’ series at www.homestore.com. For an idea of interest rates available nationwide, check out www.bankrate.com and www.hsh.com.


Two key financial questions must be answered Do you have enough cash to get the process started, and, what is your credit rating?

Ways for Renters to Become Homeowners by Melvin Feller

To qualify for the best interest rates, you generally need to make a cash down payment equal to 10 percent to 20 percent of the purchase price of the house. You will also be required to pay closing costs, averaging about 2 percent of the purchase price, to cover such things as the mortgage loan origination fee, title insurance and the property appraisal.


In addition, most people will want to have additional cash on hand for the post-purchase expenses that most new home buyers incur, such as making necessary plumbing and electrical repairs, painting and purchasing new furniture.
First-time home buyers also need to focus on their personal credit report, your credit score determines what you can do.’’

Ways for Renters to Become Homeowners by Melvin Feller

The most commonly used score is called a “FICO’’ after Fair, Isaac and Co., the San Rafael, Calif., firm that developed the mathematical formula. Consumers can get their scores — along with their credit profiles and some hints on how to improve them — at www.myfico.com.
Lenders generally want to see a FICO score of 640 or above for buyers to qualify for the best rates, experts say.


Melvin Feller suggested young buyers “make sure their credit is in order’’ before they begin the mortgage application process.
“If you have a lot of credit card debt, get that under control. Clean up any problems on the credit report”. “If you are carrying too much debt, it will limit the size of the mortgage you are allowed to have.’’

Ways for Renters to Become Homeowners by Melvin Feller

Assuming you’re got your cash together for a down payment and an acceptable FICO score, just how big a mortgage should you go shopping for?


The rule of thumb is that your mortgage payments, real estate taxes and homeowners insurance should not exceed 28 percent of your gross income. That is, if you earn $4,000 a month, your housing costs should come in at $1,120 or less. In addition, housing costs plus the debt from credit cards, car loans and personal loans, should not exceed 36 percent of your income.

Melvin Feller Business Organization Graduate Candidate, Business Owner and Business Coach

Melvin Feller Business Consultants Ministries Group in Texas and Oklahoma. Melvin Feller founded Melvin Feller Business Consultants Group Ministries in the 1970s to help individuals and organizations achieve their specific Victory. Victory as defined by the individual or organization are achieving strategic objectives, exceeding goals, getting results or desired outcomes. He has extensive experience assisting businesses achieve top and bottom line results. He has broad practical experience creating WINNERS in many organizations and industries. He has hands-on experience in executive leadership, operations, logistics, sales, program management, organizational development, training and customer service. He has coached teams to achieve results in strategic planning, business development, organizational design, sales, and customer response and business process improvement. He has prepared and presented many workshops nationally and internationally.