Dear editor,

The Nov. 9 CU Times article (“3 First-Time HomebuyerRoadblocks”) should give credit unions that want to increase theirpurchase mortgages some food for thought.

The article cited high rents, high debt and high competition forhouses in buyers’ price range as three big obstacles. With studentdebt at $1.2 billion and generally lower earnings, millennials andother first-time homebuyers certainly face obstacles today thatweren’t as common 15 years ago. Add to this the fact that mostfirst-time buyers and millennials don’t understand how to buy ahouse.

The 2015 “How America Views Homeownership” survey conducted byWells Fargo and Ipsos Public Affairs found that 69% of millennialsclaim to understand the process of securing a mortgage, but theydon’t recognize many common financial terms. Further, 39% of thembelieve the monthly mortgage payment is the only cost ofhomeownership, while many think gifts from relatives and friendscan’t be used toward a down payment. This lack of knowledge couldseriously affect their ability to make smart homebuyingdecisions.

But this is where our industry can help. Credit unions areuniquely positioned to be first-time buyers’ advocate, instead ofjust another mortgage lender. As an advocate, they can comealongside homebuying members to help them navigate the confusingworld of real estate transactions. Many already offer workshops onreducing debt and cleaning up credit, so add to that education onwhat to expect in the steps to buying a home. First-time buyersrarely understand mortgage terms and how to prequalify – or, forthat matter, what prequalifying means.

As member advocates, credit unions can help first-time buyersthrough the steps of one of the biggest financial purchases theywill ever make. By actively participating with members in the earlyages of homebuying, a credit union can become a trusted adviser – agood position to be in when they are ready for the mortgage.

Tina Powers

Chief Operating Officer

CU Realty Services

Scottsdale, Ariz.