GETTING READY TO BUY A HOUSE

Sooner or later you'll get the "buying bug." It may hit you suddenly and you'll wish you'd done some advance planning.

The HOUSING INFO LINE is a non-profit agency offering counseling to anyone who wants to explore ownership. Call us while you're in the early planning stages for guidance on how to "get ready" to buy. We refer people to lending programs for low-to-moderate incomes in Tennessee and Georgia.

If you are in doubt about qualifying for a mortgage loan, do a confidential "dry run" with us before talking with a lender! All services are by phone and free-of-charge. Housing Info Line is funded through the City of Chattaanooga and Chattanooga Neighborhood Enterprise.

Call 267-5223.

Renters with low/moderate incomes should do these things to prepare for qualifying for a loan:

• Open a special savings account for your down payment. If you buy inside the city limits and borrow through Chattanooga Neighborhood Enterprise, you'll need $850 in cash. Aim for $1200. Lenders look for a pattern of regular deposits and few withdrawals.
• Get a copy of your credit report and make written arrangements to pay off collection accounts. Stick with your agreement! You can't make a mortgage loan otherwise.
• Make rent payments on time because the lender will check with your landlords. Pay by check or money order and save receipts.
• Pay bills on time. Show no "slow pays" for at least a year .
• Stick with that job! Most lenders require two years in the same job or field.
• Reduce debt! Payments on borrowed money should take no more than 12% of your gross monthly income, no matter how much you make.
• Raise household income to at least $15,000 per year. Income from part-time jobs or child support will be counted if it's been regular for two years.
• Don't bankrupt! See the Consumer Credit Counseling Service for debt management help. Bankruptcy is a formidable barrier to home ownership unless it was occasioned by a medical disaster!
• Call the Housing Info Line for confidential counseling session by phone. The interest rate on mortgage loans has been at its lowest point in thirty years. With rent rates escalating in this area, it just makes sense for most families to "own their own"!