E unike Brady Head of the Home Lending frican merican Segment for ells Fargo
The homeownership journey is just that – an ongoing process that doesn’t simply start and end when you get the keys to your first home. In my role as the Head of the African American Segment with Wells Fargo’s Home Lending Diverse Segments team, I am responsible for creating and implementing strategies to address the disparity in wealth and homeownership that we face as a nation, with a specific focus on advancing Black homeownership. We are deeply committed to working hard to close the gap and create a more inclusive housing system. One way to do this is through education. In this year’s publication, we explore opportunities to build the knowledge and leverage the tools available to help provide confidence and support at each stage of homeownership.
John Ripoll Senior Vice President for
Submittedby ellsFargo dvisors
A life of hard work and sacrifice offers the opportunity to leave a legacy that lifts up not only your family, but your community. There are important considerations as you approach financial planning to transfer wealth to future generations.
Creating an estate plan is a foundational step. While it can seem intimidating, a team of trusted professionals, including a financial advisor, estate planning attorney, and accountant, can ask the right questions and help you avoid potential pitfalls.
“Developing an estate plan is about taking control. You are directing how the assets you have accumulated over your lifetime are passed on to the people and organizations that you care about,” says John Ripoll Senior Vice President for Wells Fargo Advisors.
Your situation’s complexity will determine which documents your plan requires however, these five are often included in an estate plan: A ill provides instructions for distributing your assets to your beneficiaries when you die. In it, you name a personal representative (executor) to pay final expenses and taxes and distribute your remaining assets. durable po er of attorney lets you give a trusted individual management power over your assets if you can’t manage them yourself. This document is effective only while you’re alive.
health care po er of attorney lets you choose someone to make medical decisions for you if you are unable to communicate your wishes, or don’t have legal capacity to make treatment decisions for yourself.
living ill expresses your intentions regarding the use of life-sustaining measures if you are terminally ill. It doesn’t give anyone the authority to speak for you.
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B y transferring assets to a revocable living trust, you can p rovide for continued manag ement of your assets during your lifetime and after your death possibly for g enerations to come.
Establishing a plan is only the beginning. Significant li fe events are likely to call for changes to your plan.
Ripoll explains, “It’s important to regularly review your plan to ensure it continues to meet your needs. You want to consider whether your estate planning documents, asset titling, and beneficiary desig nations have been coordinatedto allow your assets to be distributed according to your wishes. A regul ar review of who you have named as agent, executor, guardian for minor children, and trustee is important to ensure those named are still willing and able to serve when needed.”
Investment and Insurance Products are:
ot Insured by the F IC or ny Federal Government gency ot a eposit or Other Obligation of or Guaranteed by the Bank or ny Bank ffiliate
Sub ect to Investment Risks Including Possible Loss of the Principal mount Invested
Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC, Member SIPC, a registered broker-dealer and non-bank affiliate of Wells Fargo & Company.
2019-2023 Wells Fargo Clearing Services, LLC. All rights reserved.
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We start with a spotlight on an exciting new partnership that underscores Wells Fargo’s commitment to Historically lack Colleges and Universities (H CUs) and the importance of laying a strong foundation of financial literacy on the path to future homeownership. The Different World tour, visiting H CUs throughout the country this year, aims to raise awareness and enrollment for H CUs. Wells Fargo’s sponsorship celebrates H CU culture and helps us offer college students helpful resources about scholarships, career opportunities, and building generational wealth.
ext, an interview with HomeFree US shares the importance of getting prepared to buy a home before you’re ready to make an offer. Ensuring you’re ready to take such a huge financial step is easier with the information you need.
We round out this series with a focus on two topics that face those who already own a home. The first provides advice to help homeowners keep their home if they are facing financial hardship the second outlines the importance of passing along assets, including real estate, to build generational wealth for future generations.
We hope this information provides a helpful framework for wherever you or your loved ones are on the path of homeownership. We’re proud to collaborate with industry, governmental, and local stakeholders in markets across the country to do what we can to address the racial homeownership gap and look forward to continuing this important work together.
How to a e Homebuying asier and ess pensive
yline erline Hughes pruill
Purchasing a home is the ultimate goal for many U.S. households. The thought of choosing to paint rooms any color under the rainbow, hammer nails into the walls to hang favorite photos and art pieces, and simply having a safe space that doubles as a personal investment is shared by many. In pricey markets including the DM area, many think the prospect of becoming a homeowner is far-fetched. Rising home prices, increasing interest
rates and the harsh reality of real estate race disparities can be discouraging setbacks. uckily, homebuying guidance and preparation can turn those obstacles into homeownership opportunities, according to Milan riffin, Chief Operating Officer of HomeFree-US . HomeFree-US , in collaboration with lending partners like Wells Fargo, are helping renters become homeowners.
When people are ready to start the homebuying process, they usually call a realtor or loan officer first, instead of a HUDcertified Homeownership dvisor, said riffin. Doing so, hurts homebuyers by limiting their access to money-saving mortgage programs and increases the likelihood of loan denial. There are so many things’ people don’t know about the process, riffin added. Homebuyers get stuck because they are overwhelmed with the amount of re uired paperwork, lender re uirements, programs, steps, etc. Homeownership dvisors make the process easier by helping homebuyers overcome the four biggest obstacles to homeownership – credit, debt, savings, and downpayment.
Studies show lack mortgage applicants are denied a mortgage more often than white applicants. Credit is the biggest barrier to approval but it’s not just a low score holding buyers back. Surprisingly, we see buyers who come to HomeFree-US with a -credit score after being denied for a mortgage because their debt is too high. uick financial review with a Homeownership dvisor, before meeting with a loan officer, helps to ensure buyers are truly ready for mortgage approval. inety-six percent of buyers that HomeFree-US refers to lenders are approved the first time.
When homebuyers go straight to realtors, they run the risk of being connected to one lender instead of being presented with additional mortgage options. Starting with homeownership guidance positions buyers to research, ualify for, and access affordable loan and downpayment programs many don’t know exist. More options mean bigger savings and money to cover expenses as a new homeowner. HomeFree-US members secure an average of , in downpayment assistance.
Founded years ago by her parents, Marcia and im riffin, CEO and Co-CEO respectively, HomeFree-US is a nonprofit organi ation created to build the foundation to close the wealth gap by educating and developing financially-prepared, sustainable homeowners. pproved and certified by the U.S. Department of Housing and Urban Development (HUD), HomeFree-US offers an array of services including step-by-step homeownership guidance, foreclosure prevention counseling, Continued on ne t page
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property development, neighborhood revitali ation, and training for emerging real estate developers.
HomeFree-US ’s Center for Financial dvancement (CF ) provides financial education and recruitment for H CU students. Thanks to partners like Wells Fargo, , students from H CUs have learned the tenants of credit, homeownership, and leadership while accessing internship opportunities in the mortgage and real estate finance industry.
Wells Fargo’s latest effort to help homebuyers is its Homebuyer ccess rant totaling , https:// sites.wf.com/accessgrant/ . For those eligible, repayment is not re uired, and the grant can be combined with additional programs. For this and most grants, housing counseling is re uired to ualify.
ffording a Home
Today’s housing market is expensive. recent Forbes Maga ine article https://www.forbes.com/advisor/ mortgages/real-estate/median-home-prices-by-state/ , shows the median home prices by state. Despite the fact that home prices and interest rates may seem prohibitive, riffin says that should not deter those considering homeownership.
When it comes to high-priced markets, like D.C. and tlanta, there’s still opportunities to purchase a home, she said. When you speak to a Homeownership dvisor, they will strategi e ways to reduce debt and suggest downpayment programs to boost your buying power. Even those receiving a Housing Choice oucher (formerly known as section ), can use it to buy a home and receive monthly assistance to meet homeownership expenses. For more information on HomeFree-US ’s homebuying program, visit https://homefreeusa.org/homeowners/ or call - - .
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Rulon Washington, Wells Fargo Home Mortgage East Region Executive Director of Mortgage Sustainability,
Considerations and tips to help retain homeownership amid challenging situations.
Once the dream of homeownership has become reality, some may find themselves facing the challenge of staying in their home. Whether it’s unexpected medical bills, job loss, or changes in the market, there are resources available to assist families in the face of hardships.
How important is it to contact your mortgage company if you happen to run into financial challenges?
Wells Fargo and other servicers engage with customers through emails, letters, and by phone to help address payment challenges. It is important that customers respond to this outreach or contact their servicers. Often, there are programs that might be available to help –but we can’t help homeowners unless they work with us.
What is the best advice you would give to someone who has fallen behind on their mortgage?
Please do not wait until the mortgage is severely past due. Call your mortgage servicer as soon as you know you cannot make your monthly payment. The phone number is listed on your monthly bill. Explain why you cannot make your monthly payment and ask the servicer for assistance.
What resources are available to help homeowners who are faced with payment challenges?
In addition to some programs through your servicing provider, United States Department of Housing and Urban Development (HUD) certified housing counseling agencies are a trusted resource for homeowners who are looking for local assistance. If you need help dealing with broader financial challenges, reach out to a local HUD-approved, nonprofit housing counseling agency for financial education, mortgage help services, and other free assistance. You can find a local, trusted HUD approved housing counseling agency at: http://www.hud.gov/counseling.
This Supplement is paid for and sponsored by Wells Fargo Home Mortgage Division...
REALESTATE
IsThisCommonMythPreventingYouFromBuying a Home?
( StatePoint)Ifyouthinksavingfor a down paymentisyournumberonebarrier to homeownership,it’simportanttounderstand howdownpaymentswork,howmuch is necessaryandwhatprogramscanhelpyou securethefundsyouneed.
Togetyoustarted,FreddieMac is answeringsomefrequentlyaskedquestions:
1.Whatis a downpaymentandhow doesitaffectmymortgage? A downpayment is theamountofmoneyyoupayupfrontwhen purchasing a home,andit’sgenerally calculatedas a percentageofthetotalhome price.Whenyouputmoremoneydownatthe outset,theamountyouneedtoborrowfrom yourlenderdecreases,andsodoyourmonthly mortgagepayments.Although a largerdown paymentcanbebeneficialforthisreason, it maynotbeinyourbestinterestifitwould leaveyouin a compromisedfinancialposition withnocushion.
However, a smallerdownpayment canhelpyoubecome a homeownerfasterand beginbuildingequitysooner.
2.Howlargeshouldmydown paymentbe? A FreddieMacsurveyfoundthat nearlyone-thirdofprospectivehomebuyers believeyouneedtomake a downpaymentof at least20%tobuy a home.Thismythremains oneofthelargestperceivedbarriers to homeownership.
downaslittleas3%.Yourdownpaymentsizewilldependonyourfinancial situation,yourlenderandyoureligibilityfordifferenttypesofmortgages. Bearinmindthatifyouputdownlessthan20%andhave a conventionalloan,you’ll needtobudgetforprivatemortgageinsurance(PMI),anaddedinsurancepolicy thatprotectsthelenderifyou’reunabletopayyourmortgage.Thismonthlyfee is rolledintoyourmortgagepayment.Expecttopayapproximately$30to$70per monthforevery$100,000youborrow.Thegoodnews?Manytypesofloansallow youtocancelyourPMIonceyou’vebuilt20%equityinyourhome. YoucanuseFreddieMac’sdownpaymentcalculator at myhome.freddiemac.com/resources/calculators/down-paymenttoexplorehow
BringingLuxuryOutdoors:Tipsfor a High-End Resort FeelatHome
(StatePoint) Elevating your outdoor space into a luxurious retreat that rivals a highendresort is a dream that many homeowners share. Whether you're renovating your current property, planning a complete transformation, or starting fresh with a custom build, use these tips and design elements to get started.
•Embrace Seamless Indoor-Outdoor Living: Create a seamless transition between indoor and outdoor spaces by incorporating features like bi-fold doors or expansive sliding glass doors that open onto a patio or courtyard. This continuous flow enhances your living experience and sets the stage for a resort-like ambiance.
•Go Big and Bold with Backyard Landscaping: According to experts, landscaping should provide contrast. "Incorporate modern aesthetics into your backyard with bold and innovative landscaping that includes both hard and soft elements," suggests Kevin Scott, owner and partner of Alair Sanibel, a custom home builder in Southwest Florida.
•Put Modern Twists on Natural Elements: Bringing the beauty of nature into your outdoor design will create a calming environment. To maintain a contemporary feel, use materials like stone, wood and bamboo in creative ways, such as with modern sculptural planters, sleek wooden decking or minimalist stone pathways.
•Create a Cozy "Sane-tuary": Leili Fatemi, of Leili Design Studio, recommends transforming your outdoor space into an extension of your interiors to achieve harmony. Choose cozy and comfortable furniture like sofas, lounges, swings and dining sets, and add finishing touches such as pillows, rugs and accessories. "When selecting outdoor items, opt for weather-resistant materials like wrought iron, teakwood, and outdoorgrade wicker and fabrics that are 100% solution-dyed acrylic for fade- and mildewresistance," advises Fatemi, emphasizing the importance of easy-care living.
•Introduce Water Features and Outdoor Luxury Showers: Capture the resort-like feel by incorporating water features such as fountains, reflecting pools or small waterfalls, as well as stunning additions like outdoor luxury showers for a spa-like experience.
•Enhance Ambiance with Outdoor Sound Systems: Install high-quality sound systems so you can enjoy convenience and comfort outdoors, whether relaxing or entertaining guests.
different down payment amounts affect how much you pay each month and over the life of your loan. 3. Where can I turn for help? Struggling to save for a down payment? There are many forms of down payment assistance, including grants, mortgage credit certificates, individual development accounts, down payment assistance loans and even monetary gifts from family members. For those earning 50% or less than their area’s median income, Freddie Mac offers a $2,500credit to qualified individuals to assist with down payment and other closing costs.
A housing counselor or lender can explain the ins and outs of each of these options, and help you determine which make sense for your situation. Ask your lender about DPA One, a free tool from Freddie Mac that lenders can use to help connect you with down payment assistance programs available in your area. Saving for a down payment can sound daunting, but you may be overestimating the upfront cost. The truth is that homeownership may be a practical and affordable option for you now.
•Illuminate with Smart Outdoor Lighting: Consider installing smart outdoor lighting systems that can be controlled remotely to improve security and safety and to highlight landscaping and architectural features at night.
•Create a Versatile Outdoor Retreat: Incorporate a backyard studio that can serve as a sheltered spot for various purposes such as a guest room, home office or party room.
•Focus on Wellness and Entertainment: Design outdoor spaces that promote wellness and entertainment. LeTricia Zogheib of Zogheib Necessary Luxury recommends incorporating features like a giant chess set or innovative installations. "I recently had a client request an outdoor TV installed at the end of his pool that could rise from the ground and rotate for different seating positions," says Zogheib.
•Partner with Expert Builders: Collaborate with experienced builders specializing in outdoor luxury design. "A reputable builder can ensure that your outdoor retreat is crafted with precision and attention to detail," says Glen Harris III, regional partner at Alair Florida.
To explore how experts can help you create an outdoor living space that rivals the experience of a high-end resort, visit www.alairflorida.com
With thoughtful design, premium materials, attention to detail and the expertise of knowledgeable professionals, you can transform your outdoor area into a luxurious retreat where every day feels like a getaway.
PHOTO SOURCE: Courtesy of Alair Old Naples
The Wells Fargo team was on-site for the tour events in Washington D.C., hosted by Howard University
ConnectingWithTheNextWaveOf Homeowners
By Jen Jacobsen Wells Fargo Corporate Communications
For many Black families, Thursday night in the late 80’s and early 90’s meant gathering around the TV to watch A Different World. This iconic series, inspired by student life at historically Black colleges and universities (HBCUs), was a cultural force that continues to influence Black audiences, in part because of its honest portrayal of social and political issues.
This year, the show’s cast is reuniting for the “A Different World (ADW) Tour” and visiting select HBCUs. Their goal: raise awareness and enrollment for HBCUs nationwide using the star power and cultural impact of the show. Inspired by this goal and building on a commitment to HBCUs and the Black community, Wells Fargo stepped up as the premier financial partner of the tour to celebrate HBCU culture and offer helpful resources about scholarships, career opportunities, homeownership and building generational wealth.
“It’s so important to lay a strong foundation of financial literacy during the formative college years,” shares Dewey Norwood, Wells Fargo Senior Lead Diversity & Inclusion Consultant, Enterprise HBCU Strategy. “Investing in HBCUs and organizations that support them is essential at Wells Fargo, and working with the A Different World cast and tour team aligns with our efforts to make a meaningful impact with students, alumni and community supporters of HBCUs.”
This spring, the Wells Fargo team was on-site for the tour events in
Washington D.C., hosted by Howard University. The first event was a reception held at the Black, women-owned Salamander Luxury Hotel where student DJ Madyson Patterson (aka DJ Wild Child) set the tone for the event and guests enjoyed food created by James Beard Award winner chef Kwame Onwuachi. Attendees included ADW cast members and staff from the tour, Wells Fargo employees, and partners in the Diverse Segments space, such as HomeFree USA, the Mortgage Bankers Association, and Bowie State University student mentees from a university leadership program
“The reception was a great way to kick off this stop of the ADW tour,” emphasized Ewunike Brady, Head of the Home Lending African American Segment for Wells Fargo. “Seeing HBCU students and future leaders alongside the partners that we work so closely with to help empower Black communities and close the homeownership gap was truly inspiring.”
The next day, the “Hillman Takeover at Howard” began at midday and included music, swag giveaways, and more as students lined up for hours to enter the auditorium. That evening, with a packed house, the ADW cast held a panel discussion covering a wide range of topics and student questions.
“Our commitment to this tour demonstrates the significant impact that we know homeownership makes for the future success of Black Americans,” emphasizes Brady. “We’re proud to be part of this community of partners working together to inspire future generations – to celebrate our past and build for tomorrow.”
