Think you can't qualify? Think again

 

FIRST-TIME HOMEBUYERS

Part 1 of 3

Three-part series focusing on the challenges that face first-time homebuyers.

NEXT SUNDAY: Alternative down-payment options.

 

HONOLULU ADVERTISER , Janurary 15 2006

BY LISA SCONTRAS

Custom Publishing Group

 

Since the average Oahu home’s median sales price has doubled in the past five years, many would-be first-time homebuyers feel hopelessly intimidated at the prospect of ever owning their own digs. But despite the rising prices, many have found the courage and the means to jump into today’s real estate market and start reaping the rewards of home ownership — simply by taking some methodical steps, some good advice, and looking into some creative financing options.

 

“There are lots of people who have everything they need to buy their first property, but they just don’t know they do,” says Christy Lovell, real estate agent at Prudential Locations.

 

Lovell has determined there are some basic obstacles that hold people back from taking the first step and once given the resources needed to successfully navigate the home-buying process, do they realize it is not impossible. Lovell, who maintains there are currently 27,000 renters on Oahu alone who could qualify for mortgages if they had the right tools, will be teaching a class on the subject at the Hawaii Home Ownership Center this year.   One of the roadblocks that she says first-timers often run into is coming up with funds for a down payment.

HOME SALES NATIONWIDE With sales heading back to more sustainable levels, buyers are not as intimidated to get into the market.

 

“They’re thinking like their parents did,” said Lovell. “Traditionally, everyone always had to have 20 percent for their down payment. That’s not necessarily true anymore.”

 

Lovell says the other big hurdle to overcome is the high price tag.

 

“I hear a lot of ‘Prices are too high — I can’t afford anything,’” she says. “But what they don’t know is there are so many loan products out there, that chances are they really can qualify.”

 

According to Lovell, 15 years ago there were three main types of mortgage products. Now there are more than 30 — giving buyers many more creative ways to achieve their American dream.

 

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