By Gordon Chavez, financial advisor
Have you ever thought about buying a home? It may seem overwhelming and is certainly a big step and a long-term commitment.
Many consider owning real estate the best way to start to build wealth. It can also be a great way to start building a foundation for generational wealth. If you or your parents are immigrants, you probably understand the idea of making big decisions for the benefit of future generations. Although you don’t even have to be a citizen to buy a home, there can be factors working against the Latino community, such as financial barriers, discrimination, and cultural aspects. Still, more and more Latino families are becoming homeowners. The National Association of Realtors reports that Hispanic homeownership rate reached 51.1% in 2022.
Owning a home may seem like a pipedream, especially if your parents weren’t homeowners, like in Oscarin Ortega’s case. “The conversation of home buying is not normal in my family, so I never thought it could be possible,” he says. “With the right guidance and plan, I was able to buy my first home under an FHA loan, proving that dreams are reachable.”
Even though it seemed impossible, he went for it, and now he is a proud homeowner. Guidance was key for him. You want to make sure that you’re working with reputable agents who will help you through the process.
According to Housing Wire, in the United States in 2023, 450,000 Latino households took on home ownership. The National Association of Hispanic Real Estate Professionals (NAHREP) notes that these homebuyers are more likely to trust professionals from their own communities who understand their cultural and financial behaviors. Consider these factors when deciding on a real estate agent. Believe you can do it and get prepared.
You will need
- Down payment and closing costs
- A lender/mortgage professional
- A real estate agent
- Your credit score
- Your debt-to-income ratio
- Preapproval for a loan, which is not the same as being prequalified
