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More and more Hispanics are achieving the American Dream by buying homes in the US

2023-10-31T22:26:43+00:00
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  • More Hispanics are pursuing home ownership in the US.
  • They are having a growing impact on the US economy.
  • Rocket Mortgage is proud of this growth and reaffirms its commitment to help Hispanics achieve the American dream.

The Hispanic community in the US has proven to be a key player in various aspects of society. Culturally and economically, their influence and contributions are undeniable.

An area where Hispanics have played a particularly significant role is in the homeownership rate in the country, making huge strides in the last 10 years.

Hispanic diversity in the United States

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To get an idea of the Hispanic population in the US, Rocket Mortgage provides us with some data from the National Association of Hispanic Real Estate Professionals (NAHREP): 26% of the population in Tampa, Florida is Hispanic; in Tucson, Arizona it’s 32%; in Las Vegas, Nevada it’s 29%; in Albuquerque, New Mexico it’s 50% and in Napa, California it’s 40%.

The cultural diversity of the Hispanic community is a fundamental factor in the growth of this country. Hispanics have shown that, with their incredible work ethic, they can achieve anything they put their minds to, and one, undoubtedly, is owning the home of their dreams.

Evidence of Hispanic success

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According to the BBC — based on the most updated figures from the NAHREP — in 2021, 48.4% of individuals of Latino origin owned homes, compared to 47.5% recorded in 2019.

Dan Hamilton, Director of Economics at the Center for Research and Forecasting at California Lutheran University, points out an essential aspect of this achievement: «Owning a home, instead of renting, is important because it allows you to start generating family wealth, beyond income.» He also mentions that it is vital for “a household’s long-term economic vitality.”

Notable contributions by Hispanics

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Besides their impact on homeownership, Hispanics have made other significant contributions in various sectors of American society. From culture to economy, their influence is reflected in cuisine, music, art and politics.

Hispanics have enriched the nation with their diversity and have proven to be leaders and entrepreneurs across various industries. Their commitment to education, family and community has left an indelible mark on the fabric of American society. Moreover, according to the BBC, annually Latinos in the US generate $2.8 trillion. This is equivalent to Mexico and Brazil combined.

The American dream according to Hispanics

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For Hispanics, the American dream is a concept that goes beyond the mere acquisition of material goods. Homeownership is a crucial part of this dream as it represents stability, security and the possibility of laying down roots in a land of opportunity.

Homeownership is not only a symbol of success but is also considered a legacy passed down from generation to generation. Hispanics have shown exceptional tenacity in overcoming obstacles and achieving their goals, and homeownership has become a tangible result of that unquenchable spirit.

How to buy a house

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Given this data, you might feel motivated to purchase a home. And rightfully so. The first step is to analyze your current situation. Rocket Mortgage suggests that you consider the following: debts, credit score, down payment, income, level of stability and home maintenance.

Debt is one of the first factors to consider because it’s important to manage your debts so they don’t affect your credit history. When your debt is under control, the money you save could potentially go toward your new home.

Your credit score goes hand in hand with this because banks are interested in knowing how reliable you are when it comes to paying your debts. This is important for obtaining a mortgage. A minimum credit score of 620 is typically required to qualify for most mortgages.

As for the down payment, you don’t need to pay 20% up front. Conventional loans often only require 3%, while Federal Housing Administration (FHA) loans require 3.5%. Veterans Affairs (VA) loans and those from the United States Department of Agriculture (USDA) don’t require a down payment.

Income is vital for any purchase you wish to make. It’s essential to crunch the numbers to understand your financial situation and be realistic about what you can afford. Although the future is unpredictable, having a comprehensive overview makes it more likely you will succeed.

Lastly, a house requires maintenance. Consider plumbing, electrical, gas, water and even services like cable and internet. Unforeseen issues in a home may need immediate attention since one repair can lead to another, creating a domino effect. It’s wise to have savings set aside for these situations.

The process of buying a home

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Taking into account the above, now comes a bit of math. Rocket Mortgage offers a mortgage calculator that will be of great help in determining what your possibilities are.

One aspect many people overlook is taking the time to write down the numbers. Many think that those minor, random expenses aren’t significant, but when you put everything down on paper it becomes clear how much they can add up.

Where do you want to live?

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It’s crucial to determine your ideal location and to consider your lifestyle. Research the pros and cons of home ownership. If you’re sure you’re ready, explore neighborhoods and school districts, and seek opinions from friends and family. Once you decide to buy, there are four key steps before calling a house your home.

Mortgage preapproval

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First, it’s crucial to obtain a mortgage preapproval letter unless you plan to buy in cash. Preapproval requires the lender to evaluate your finances — including income, credit history and debts — to determine how much you can afford to spend on a house. Don’t confuse this with pre-qualification, which is a preliminary step. The preapproval letter signals your serious commitment and strengthens your offers. You can apply for it online and must be diligent in providing the necessary information to expedite the process.

We want to mention that Rocket Mortgage is proud to support Hispanics. That’s why Rocket Mortgage® places significant importance on your preapproval application. Through their Verified Approval process, they meticulously verify your details, including credit, income and assets. This letter makes you stand out and is a valuable resource when you’re ready to make an offer.

House hunting

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The lengthiest phase of the buying process is generally the search for the right home, which can last up to six months or even a year, especially in dynamic real estate markets.

Working with a real estate agent can speed up this process, although some will only work with you if you are preapproved.

The real estate agent represents you. They will visit properties when you can’t and will raise the alarm if they don’t think a property is right for you. You should listen to their advice before making an offer.

Choosing a trustworthy and experienced real estate agent is essential for success in this process, as their ethics and judgment will be crucial guidance as you make one of the most important decisions of your life.

Closing the deal

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Prepare for closing once you reach an agreement with the seller. Typically, it takes 30 to 45 days to finalize your loan. During this period, an appraisal will be done and the loan will be backed by the lender. Additionally, before closing, it’s essential to request a home inspection.

Rocket Mortgage looks to the future

As we move towards the future, it’s crucial to celebrate the contributions and achievements of the Hispanic community in the United States. The growth in homeownership among Hispanics is not only a testament to their determination but also a reminder of the richness of diversity that defines this country. Rocket and other organizations play a significant role by providing opportunities and support for Hispanics so they can continue to pursue their dreams.

Rocket Mortgage introduces this tool. It’s a brief questionnaire that will give you an idea of what you’d like to buy and what fits your needs based on your current situation, offering a clearer view of your circumstances. Rocket Mortgage is proud to support the Hispanic community now, and always, so that together they can help more people achieve the American dream.

Rocket Mortgage, LLC; NMLS #3030; www.NMLSConsumerAccess.org. Equal Housing Lender. Licensed in 50 states. For additional information please visit RocketMortgage.com. 

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