Pre-Purchase FAQ

Frequently Asked Questions

How much is a home Pre-Purchase Counseling?

ClearPoint currently has funding from the Department of Housing and Urban Development (HUD) which allows us to offer this service free of charge.

With so many people losing their homes, will your counseling help me to keep the home I purchase?

At ClearPoint Credit Counseling Solutions, we recognize that it is far worse to lose a home than to delay the purchase of a home until one is truly in a position to afford it.  Many of the foreclosures today are a result of consumers taking on more home than they could reasonably afford at the time.

While it is unfeasible to plan for every possible contingency, our Housing Specialists help clients assess their readiness for home purchase with an eye toward long-term stability. Just because a lender has approved you for a loan does not necessarily mean you can actually afford it.  Home ownership alone is not the goal of the counseling session.  The goal of ClearPoint’s Pre-Purchase Counseling is homeownership and home retention.

I’m interested in purchasing a home, but I know my credit score is too low.  Would I still benefit from a counseling session?

Definitely.  As part of your personalized counseling session, your Housing Specialist will pull and review your credit report, highlighting the areas which may be preventing you from obtaining financing. We’ll offer recommendations for rehabilitating your credit in preparation for home ownership.

How is my debt-to-income ratio determined?

You can use ClearPoint’s debt-to-income calculator to estimate your ratio comparing the amount of debt you carry to your overall income. When you know and improve your ratio, you’ll increase your odds of qualifying for lower-interest mortgages, auto loans and credit card rates.

Financial advisors suggest keeping that number below 36%–a threshold lenders often use when determining how much they’ll lend you.

How can I tell how much home I can comfortably afford?

It depends on your income and expenses. Different lenders have different debt-to-income ratio requirments. Lenders will often grant you a loan for more than you’ll be comfortable with in the long run. Attending a Pre-Purchase Counseling will give you an analysis of your budget, a overall financial picture, so you can determine how much of a home you can really afford.