Three myths of first-time home buying - financing options help new buyers land first home

 

HONOLULU ADVERTISER , June 19 2006

BY LISA SCONTRAS

Custom Publishing Group

 

OK, so you’re not into speculation, day trading, condo flipping or get-rich-quick schemes — you just want to buy a house, establish some roots and turn that rent money into an investment for the future. All hope is not lost.

 

Granted, if you have no job, no income and only pukas in your pocket, you may have trouble qualifying, even for today’s bargain-basement mortgages. On the other hand, if you have a reasonable financial history and a steady job, you may be able to take advantage of some innovative financing and land your first home. First, don’t be discouraged by some of the myths of first-time homebuying.

 

Myth 1: You need to have a big down payment. Not true. Today’s financing options include a variety of programs — some requiring very little cash.

 

Myth 2: Everyone is making a fortune in real estate so it must be a sellers market — a bad time to buy. Wrong again. According to Prudential Locations’ executive vice president of sales Scott Higashi, whose brother ironically is a recent first-time homebuyer, “It’s a very unusual market in that it is good for both buyers and sellers. Good for sellers because they’re getting great prices, and good for buyers because (with interest rates so low) they have great buying potential.”

Myth 3: You don’t make enough money. Check out the interest-only financing programs which can save you hundreds of dollars each month enabling you to qualify for a larger loan. Talk to a lender and find out what loans might suit your needs best.

 

Reid Higashi and his wife Dawn are successful first-time homebuyers, and he says “I’d be lying if said it wasn’t scary as far as it is a big jump and commitment financially.” But, he says the process was a lot easier than they expected, thanks to the knowledgeable guidance of their Realtors. “The best advice was to act quickly when we found something that met our criteria,” he recalls.

 

If you’re willing to start small — maybe a condo — and develop both a disciplined financial plan and a failure-is-not-an-option attitude, buying that first home may still be in your future.

 

 

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