Aloha:

In this post sub-prime market the number one obstacle I've run into is the lack of education to the general public about down payments on loans.

Most lenders are now requiring 3% down for programs and I deal with buyers rountinely who come to me to buy a home and don't realize this and are sorely disappointed because they think just because they can afford the monthly payment and their credit is good that they can get the loan.

Any chance we get please inform buyers or better yet send out an announcement to all our buyers that it is prudent to always work first with the lender and then with the Realtor so you are ready willing and able to buy. 

Making sure that the funds are "seasoned".  That is another term most buyers are not aware of.  The better at educating our buyers in advance the less disappointment in the end and the more we show our value to our clients.

Aloha, Gina

  Search the Maui MLS and dream of paradise at: www.FineIslandProperties.com

 
Post is included in group: Hawaii Real Estate Professionals
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5 Comments on We have to Get the Downpayment Message out to Buyers

I would find it interesting that the investors on your islands don't understand this.  You must be speaking about first time buyers or foreigners.

07/03/2008 09:55 PM by Heath Coker, Broker Owner (Cape Group Real Estate & REindex.com)


Aloha Heath:

Even investors to Maui what a property that "cash flows" (with little to no down)???

I find there are still a lot of buyers (investor or otherwise) that haven't gotten in tune with the tightening of the mortgage industries criteria for qualification.  I love all my buyers and first thing I do is refer them to a lender so they are 100% clear on what buying on Maui entails. 

When there is a will there is a way and I try and help my buyers but I am suprised by the amount of knowledge not commonly known.

 

Aloha, Gina

07/03/2008 10:08 PM by Gina


Gina- They also need to understand MI.  With huge fluctuations based on loan type, credit score, amount of downpayment, etc, sitting down with a loan calculator is not good enough to determine price range.

07/03/2008 10:24 PM by Erik Hitzelberger, --Louisville-Bullitt County Real Estate (RE/MAX Alliance)


Gina there are down payment programs thru FHA like the Nehemiah program that assists buyers with a 3% down payment in order to qualify for a loan to purchase. check out http://www.getdownpayment.com

07/05/2008 08:46 PM by Stephen D White, E-Pro, ABR Cape Cod RealtorĀ® (Ocean Blue Realty llc)


Aloha Stephen:

I am aware of the FHA and Nehemiah but our buyers fresh to a Realtor don't seem to be aware.

I was only trying to make the point that we as a community need to get the word out to Buyers prior to them looking for property as this recently has become a sort of shock to the buyer that they have to put approx 3% down and can't go lower, etc.  I know every situation is different depending on credit scores, etc., but in general the public seems to have missed the shift of the lenders requiring more down.

Mahalo (thanks) for sharing your knowledge and aloha.


Aloha, Gina

07/05/2008 10:29 PM by Gina


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Real Estate Agent: Gina Duncan, R (S), ABR, e-Pro (Keller Williams Realty )
Gina Duncan, R (S), ABR, e-Pro
Kihei, HI
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