Homeownership has long been considered one of the hallmarks of the American Dream. When a home is responsibly purchased, financed and maintained, the benefits of homeownership are long-lasting and profound.
Among these benefits are:
- Pride of Ownership
- Sense of Home and Community
- Stability of Location
- Freedom from Capricious Landlords and Unpredictable Rent Increases
- Favorable Tax Treatment
- A Means for Building Savings and Long-Term Wealth
We, (i.e., Ark Mortgage, Inc. and the acknowledging Real Estate Agent indicated below), believe that Mortgage Lenders, Real Estate Agents and homebuyers all play critical roles in enabling responsible home purchasing, responsible home financing, and ultimately Responsible Homeownership. For a homebuyer to make choices that lead to Responsible Homeownership:
- The needs, desires and resources of the homebuyer must be thoroughly understood by the agent, lender and the homebuyer.
- Once understood, they must be appropriately analyzed and weighed to ensure that homeownership is comfortably affordable in the short-term and is likely to remain so for the long-term.
- The agent and lender must make all required disclosures, supply any necessary explanatory information and offer their best counselling efforts to enable the homebuyer to provide informed consent with respect to their purchasing and financing decisions.
- Of the three elements that require thorough understanding and analysis, (i.e., the homebuyer’s needs, desires and resources), resources and, by extension, budgeting is of paramount importance with respect to enabling responsible homeownership.
- Appropriate budgeting includes determination of a realistic Maximum Affordable Payment (MAP) that:
- Utilizes conservative income and revenue estimates
- Considers all recurring expenditures including short- and long-term home maintenance
- Anticipates life-events, (children, tuition, weddings, etc.)
- Provides a cushion for the unexpected, (emergencies, job loss, illness, etc.)
Accordingly, we believe that homebuyers should be counselled to purchase homes that best accommodate their needs and desires to the extent that such homes are at prices and financing terms that they can comfortably afford in the short-term and in the long-term.
Ultimately, adherence to these Shared Values is in our business interests because homebuyers who benefit from Responsible Homeownership are more likely to become repeat customers and referral sources.