The Winning Recipe for Homeownership

Owning your first home can seem intimidating, since you’ve never done it before and it’s not something most people study in school. Yes, it is a commitment and a big investment — and it also has even bigger benefits that can change your life.

Countless people successfully become owners for the first time each month. Knowing how to get started and what to expect can eliminate the intimidation.

Here is a winning recipe to help you navigate the ownership process with confidence.

Step 1: Build a Team

Becoming a home owner may be the largest investment you ever make, and it pays to call in the experts. You’ll want a REALTOR® and a loan officer on your team. In both cases, look for people who you can relate to, who you trust, and who sincerely want to help you.

Your REALTOR will guide you to properties that best meet your needs and will also represent you and your interests during the transaction. The good news is their commission is paid by the seller, so as a new owner, their services are free.

When looking for a real estate agent, find one who is an expert in the neighborhood where you’d like to live, and who is also trained to help you compete. In today’s competitive market it is particularly important to have an agent who knows how to win in competitive situations, where more than one buyer is interested in the same property. Click here to find a Prudential Locations real estate agent. 

Once you find a REALTOR, ask them to recommend two to three loan officers for you to consider.

Step 2: Get Preapproved for Your Loan

Talking numbers before you begin shopping for homes sets you up for success. If you start looking at homes that cost $850,000 when a townhome for $350,000 is more practical, you’re setting yourself up for heartbreak.

A better alternative is to get preapproved for a loan first. During the preapproval process, you will find out how much you are qualified to borrow and what you can comfortably afford. Then you can begin your search. You’ll save time and effort, and when you find your perfect home, you’ll be in the position to make a solid offer  In today’s competitive market, sellers won’t consider an offer without a preapproval letter.

During the preapproval process, the loan officer will evaluate your income and expenses and determine how much you can comfortably afford. They will check your credit report, and if there are issues, they can help you address them. Most credit issues are fixable.

A good loan officer will also be able to advise you on different loan programs that might work for you, such as VA loans or USDA Loans.

You can get a head start by gathering the paperwork your loan officer will need: two years of tax returns, two months of bank statements and 30 days of pay stubs.

Step 3: The Smart Search

This is where the fun begins! With your budget in hand, you can start your house-hunting. You can search online 24/7 at PrudentialLocations.com, which has the most comprehensive real estate search for Hawaii, including new projects, foreclosures and for-sale-by-owner properties. The Power Search feature lets you search by many criteria at once: price range, neighborhood of interest, number of bedrooms, yard or pools, and more.

Also, when you’re on the go, the free Prudential Locations mobile app thinks like you do. It gives you listings, property details and photos, open houses and more. It is keyed to your GPS location and helps you search several neighborhoods or condos at a time. Download the mobile app from the iTunes store or the Android market.

Join Us at the 2014 Hawaii Homebuyers Fair

Attend our free First-Time Homebuyer Workshop at the Hawaii Homebuyers Fair and be entered to win a GoPro! Learn about the nuts and bolts of homeownership in Hawaii, and how to win in this competitive real estate climate. Seminar times are:

• 10-11:30 a.m., registration starts at 9:30
• Noon-130 p.m., registration starts at 11:30 a.m. 

Click here to reserve your spot.