Home Buying in Kaneohe>Question Details

Nancy, Home Buyer in Kaneohe, HI

I make 100k/yr, have excellent credit and have been paying 2500/mo rent for 5yrs. I've never bought because

Asked by Nancy, Kaneohe, HI Sun Jul 26, 2009

have no down pymt. You think I have any chance to get a home loan?

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All of the previous answers explain very well why you should seriously consider being a homeowner!
In addition, because of the market, you might be able to get owner financing or be in a rent to own situation.
Just plan to go talk to a lender or mortgage broker & see how much mortgage you could qualify for!
Good luck,
0 votes Thank Flag Link Mon Jul 27, 2009
You could be using that $2500/mo. to pay your own mortgage, not someone else's. For the first three years I was living here, I spent over $40,000 in rent and that could have paid my own mortgage. I did not realize it at the time, but have been a homeowner for over 9 years and it is the best. Being a homeowner gives you fantastic satisfaction and pride and this is truly the best time to purchase. Low rates, high inventory, it is a Buyer's Market now and expect it to shift next year with higher rates, etc. Of course, you will get the $8000,00 tax credit as a first time home buyer but you need to purchase before the end of November. You DO NOT have to pay this back and can be used as closing credits or as a down payment. Check with a lender and if you need any suggestions, call me at 888-385-6284 and I can give you several referrals. I always tell my clients to use the one with the best rates. Get pre-approved and then go shopping. If you need a fantastic Realtor referral, I can help with that as well. Good Luck. JillyG
Web Reference: http://www.jillygmaui.com
0 votes Thank Flag Link Mon Jul 27, 2009
Hi Nancy,

The approach I like to use when deciding to buy is to get your financing arranged first. So, you're on the right track. If make a good income and are not saving, then you need to look at that first. Of course you have to pay taxes, but there are other areas where you can save money. If you are paying more than 12% on any credit card, call the company and try to get it lowered. Keep trying every 2 months until they agree. If they don't, close that account. You don't need it and it is only hurting your finances. Once you get the debt under control, look at other expenses. Paying over $500 for a car payment? If it's not a tax writeoff, it's probably not a good idea. You should seriously consider talking to a financial planner.
Once you have those items addressed, talk to three lenders. I recommend a credit union, a bank and a mortgage lender. Call or email and I will send you three recommendations. The tax advantages of home ownership are substantial. In some case, a person can save over $5000/year. That almost $500/month of your tax money that could be going toward a home payment.

Frank Diaz, MBA, (RA)
808 723 0900
0 votes Thank Flag Link Sun Jul 26, 2009

An example of being "rent poor." More recently the "down payment" issues have become an even larger factor in purchasing a home. However there are programs and options that may help your situation. Our recommendation is to do two things: visit several loan agents and begin working with a real estate professional.

It is important that you become familiar with your options and have a plan to move forward......spending $2,500 on a monthly rental is not the best approach. Step one, is to explore all options and develop a plan that will take you in the direction you need to go.

Good luck
The Eckler Team
0 votes Thank Flag Link Sun Jul 26, 2009
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