YES, YOU CAN OWN YOUR OWN HOME!

By Tricia Morris,
President, Premiere Mortgage

Many first time homebuyers began their journey believing homeownership was beyond their dreams. Yet, nothing could be farther from the truth.

Today, literally millions of people enjoy the pride and financial strength of owning a home. In fact, home ownership is at an all time high, and under both Democratic and Republican administrations it has been the goal to encourage policies that will continue to see home ownership expand.

Today, the market on Maui and in many parts of the nation is competitive. Low interest rates have supported strong new homes sales and inventory has yet o meet demand. However, if the desire to have your own home is strong, then you realize that it’s not today that is your focus, it’s tomorrow and the many years to come.

The housing market, powered by low interest rates, helped to support the U.S. economy throughout 2003. For all of 2003, home sales hit a record high of 1.09 million, an 11.5 percent jump from 2002—the previous best year for sales.

Recent indications are that the Federal Reserve will leave interest rates untouched for now. Even then, any rate increases are expected to be in planned increments based on the good news of the growing strength of the overall economy. This strategy will hopefully keep long term mortgage rates low.

There is pent up demand for additional housing on Maui Builders are planning or putting in place projects in all market segments from starter homes to high-end properties.

Policy makers realize the need for the infrastructure that will support our island home, and the need to balance growth with protection of the environment that is a major part of Maui’s economic strength.

With preparation, potential homebuyers can begin now to plan ahead and empower themselves as they prepare for ownership.

First, believe that you can do it! When you think about your first home, really think about it. See it in your mind. How many bedrooms? Can you see the living room, the kitchen, the lanai, the landscaping. What color is the front door? Where are the flowers planted?

Experts who coach and train successful people tell us that we must first believe we will be successful, and that by thinking of our goal we will begin to see opportunities in our life that we might have otherwise overlooked. We all experience this in one way or another every day. How often have you thought that you wanted a new car and then suddenly began to see car ads everywhere and all the new cars on the road?

Now, apply this same thinking to your new home and then begin to take practical steps to get your finances and your personal planning in line with your goals. You don’t have to do everything all at once. Take the first step and then take another.

Here are some suggestions that have worked for others. You might want to cut them out and put them on the refrigerator or on a bulletin board. Start now and you can be ready for opportunity when it comes knocking on your door.

ü Check your credit rating. Three services that are available include Transunion, Equifax, and Experiian and can be reached via the Internet. (Or let a reputable mortgage broker do this for you)

ü If your credit check shows any problems, take care of them now.

ü Take steps to improve your credit score—Use your credit cards conservatively, keep balances at one-third of the credit limit, and pay more than the minimum monthly credit card payment.

ü When paying down your debts, focus on paying off high interest debt first. You may also want to consider consolidating your debts with a bill-consolidation loan that will be at a lower interest rate.

ü Hold off on major purchases that aren’t absolutely necessary. Make your current car last instead of buying a new one.

ü Take control of your personal expenses. Develop a plan, be consistent, review your plan every month and stick to it.

ü Pay bills on a timely basis. Avoid late payments.

ü Avoid using your credit cards and pay cash as much as possible.

ü Pay yourself first. Put money in a savings account or into an investment program on a regular basis. This adds up faster than you may think. Don’t over estimate what you can save, but make it a priority.

If you need advice, don’t overlook the lenders that support real estate industry. For example, make an appointment with a professional mortgage broker. Discuss your plans. They can often help you with a good analysis of the market and what you can do to financially plan for a new home with a variety of financing options. Like you, they would rather support success when you come in for your loan than be surprised by any problems that might have been avoided. They have years of experience and are willing to put it to work for you.

Can you afford to pay a mortgage each month? If you pay rent, you may be prepared to make monthly mortgage payments. The amount of your monthly payment depends on the amount you borrow, the interest rate, and the repayment period.

With a belief in yourself, a willingness to ask for help, a clear focus and vision of your goals, with planning and preparation—yes— waiting at the end of your journey is a home that you and your family will enjoy for many years to come.

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