Addressing First-Time Home Buyer's Worries ... Down Payments, Credit, FHA, & More

I recently had an associate that forwarded an article to me regarding the findings of a survey conducted with prospective first-time home buyers.  Being a mortgage banker, he knew the results of such a survey would naturally be of interest to me. 

The information contained within this article surprised me just a little bit, I have to admit.  Maybe it's because I am employed within the real estate industry and sensitive to every move and gesture of it, but it seems to me that news, information, and opinions regarding our industry are everywhere and delivered non-stop.  At times, it feels almost relentless. 

Still, the findings of this survey clearly pointed out that nearly 3 out of 4 potential first-time buyers think it's difficult, if not nearly impossible, to get a loan and over 40% knew nothing of the tax credit that is available to them through November .  Also, half of these first-timers thought that having "enough" money down for a purchase still meant a large percentage down payment.  I found this news almost disheartening.  Where is the disconnect between the barrage of information I see and hear and the real information getting out to these buyers looking to enter the real estate market for the very first time?  How do I address it and act upon it?

My wife (my marketing guru) keeps telling me that I need to reach out in ways that young first-timers will see, accept, and be comfortable with.  The old-fashioned way of marketing just doesn't appeal or work with many within this age-bracket.  Another problem is, the media has recently had a tendency to "demonize" all of us within the mortgage industry to some extent, even if we did not write bad loans or steal millions like Bernie Madoff.  The younger generation has always had a tendency to mistrust the prior generation some or at minimum think we don't know much or understand their issues.  (Remember the "don't trust anyone over 30" during the 60's?)  The bad press sure doesn't help.   

So I ActiveRain, Facebook, Twitter, email, text message, Blackberry, and etc. with the hopes that I can reach those of a younger generation looking to gain knowledge regarding our present real estate market and securing their first home loan.  I hope by approaching them utilizing the more modern methods of communication, that I can reach them more effectively, diffuse misconceptions, and help to better supply the vital information they need to move ahead with their dreams of owning a home.  

For those reading this article in ActiveRain and looking to purchase a first home, pass this message on to everyone you know ... mortgages and answers do exist and down payment assistance may be available for you.  Do not be deterred by stories heard about others experiences.  Do not be afraid to ask as many questions as you need to or seek information that pertains to your personal financial situation through an experienced, professional mortgage banker.  

Obtain facts regarding the new $8,000 tax credit, monetary gifts, FHA lending and available credit/debt solutions.  Get the facts and explore all the options that exist for you.  Do not become a survey statistic, one that did not act because they carried misconceptions or were uninformed about their chances at purchasing their first home.  The market is too advantageous for you to miss out on the opportunities that exist.

Please contact me or your local mortgage professional for all the information and assistance you need.  You will be glad that you did.

Gene Mundt, Professional Mortgage Banker                                            www.genemundt.com         Chicago Bancorp