The Phelps achieved the American Dream of homeownership, but after several years of living in their home, they made the decision that it was time to move. Their home was in need of some repairs, and they decided instead of investing money in their current home, they would put their efforts into purchasing a new home.
After researching homeownership programs, the Phelps completed an application to purchase a new home. They found a house they were interested in and waited patiently for their application to be approved. They felt a new home is what their family of five needed and deserved. They worked hard at their jobs and wanted to provide this for their children.
The Phelps received notification that their application was DENIED due to negative credit and insufficient savings. It was also recommended that they seek financial education counseling. They had no idea their financial situation was in a negative status because, after all, they were homeowners and they were both employed.
Although this was a devastating realization for the Phelps, they became determined to improve their financial situation and seek financial education. The Phelps met with a financial education counselor at FHAS and explained their situation and what they wanted to accomplish. The counselor reviewed their credit report, documented their household income and together they developed a financial action plan. The action plan required the Phelps to live on a strict but realistic budget that allowed all the bills to be paid on time and money deposited into a savings account every month. This plan also required that the Phelps not take on any new debt.
The Phelps understood that in order for the action plan to work, the entire family had to be committed and dedicated to the process. They wanted their children to know they were planning for the future and establishing positive financial trends for the family.
After several months of following the action plan and meeting with their counselor regularly, they have improved their credit status and now have a much improved savings account. Currently, the Phelps have decided to continue to save and pay for the needed repairs to their home as their budget allows and put off purchasing a new home.
The Phelps are definitely changing their family’s financial dynamic for the better, and that is why the Phelps Family is a great example of Financial Trendsetters.
The Homeownership Workshop provided three days (12 full hours) of valuable information on the entire home buying process, showing me how to educate myself and shop for the right mortgage, inspections and insurance. Your guest speakers were excellent in showing us how to negotiate with lenders and real estate agents. As a result of your class, I've also developed great budgeting skills!
I really didn't want to be taken advantage of and end up hurting my family instead of helping. I took the Homeowners Workshop, read and re-read the manual, took it with me to look at houses, got back from looking and went back through to answer the newest questions I had. The course and the manual helped me make good decisions. Now I have a home that is great! Neil was great. There were no "stupid" questions as far as he was concerned. I also received a letter that they can help if I need them in the future. That's great, not that plan on letting foreclosure happen, but that they're there to help me if I get into a situation that I need help with. I would have been in a poor situation without this course and this program.