Financial Guidance Center aids new homeowners

Michele Johnson, president and CEO of Las Vegas-based Financial Guidance Center, said though home prices are increasing in the valley, homeownership is one of main draws for people moving to Clark County.

“Home prices, though rising, are still affordable and the number of new folks moving into Clark County is again increasing,” she said. “And a certain percentage of those new consumers are interested in homeownership.”

The Financial Guidance Center, which is at 2650 S. Jones Blvd., provides education, resources and grants for new homebuyers.

Every month, the center offers an eight-hour, pre-purchase education class in English and Spanish during weekdays, evenings and Saturdays to discuss topics such as budgeting, credit, the costs of homeownership, what to look for in a Realtor, the closing process and how to maintain a home.

“I highly recommend potential new homeowners contribute eight hours of their time for what will most likely be the largest purchase of their life,” Johnson said. “It offers a basic understanding of what it entails when you’re considering home ownership.”

Johnson suggests potential new homeowners track their expenses for at least 30 days in order to get a sense of their spending habits.

“Track every penny for 30 days including the things we don’t plan for or think about such as coffee stops in order to grasp where your money is going,” she said. “It’ll help you adjust your budget to save toward a down payment if needed.”

The Financial Guidance Center also offers grants for first-time homebuyers, those who haven’t owned a home in the past three years, to help with down payment and closing costs.

Johnson said the funds are intended for households at or below 80 percent area median income, which is $50,000 for a family of four in Clark County.

“One of the grants is designed for the buyer-ready household and they can contribute a maximum of $5,000 and be matched with up to $15,000, depending on need,” she said. “For the buyer who may not yet be credit ready or have sufficient funds to purchase, our Individual Development Account allows for a buyer to save up to $5,000 over a minimum of 10 months and be matched with up to $15,000, depending on need.”

Johnson added that the grants are forgiven over a five-year period.

Educating yourself, Johnson said, is one of the most important parts of home ownership.

“If you’re going to stay in town and are not anticipating moving in the next year, if you have the financial wherewithal to put down those solid roots that will keep you in one spot for potentially an extended period of time, it might be time to consider home ownership,” she said.

“But don’t be impulsive. Take the time to make sure you’re making the right decision for you and your family.”

Before someone moves into their new home, Johnson suggests having sufficient savings for at least 90 days in case an emergency such as an illness or job loss occurs.

“It’s important to have savings in place if something catastrophic takes place,” she said. “Continuing to add to that savings is also really important because of the extra added expenses of owning a home.”

Johnson said new homeowners have to be comfortable with making sacrifices once they’ve moved in.

“A potential buyer could be house poor for a bit at the beginning so they’ve got to be willing to not eat out as much or buy new cars for a while,” she said. “Homeownership is like having kids; you might never be ready but you’ve got to know the expenses, obligations and responsibilities of owning a home.”

Contact reporter Ann Friedman at afriedman@reviewjournal.com or 702-380-4588. Follow @AnnFriedmanRJ on Twitter.