Dear editor,

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

The article cited high rents, high debt and high competition for houses in buyers’ price range as three big obstacles. With student debt at $1.2 billion and generally lower earnings, millennials and other first-time homebuyers certainly face obstacles today that weren’t as common 15 years ago. Add to this the fact that most first-time buyers and millennials don’t understand how to buy a house.

The 2015 “How America Views Homeownership” survey conducted by Wells Fargo and Ipsos Public Affairs found that 69% of millennials claim to understand the process of securing a mortgage, but they don’t recognize many common financial terms. Further, 39% of them believe the monthly mortgage payment is the only cost of homeownership, while many think gifts from relatives and friends can’t be used toward a down payment. This lack of knowledge could seriously affect their ability to make smart homebuying decisions.

But this is where our industry can help. Credit unions are uniquely positioned to be first-time buyers’ advocate, instead of just another mortgage lender. As an advocate, they can come alongside homebuying members to help them navigate the confusing world of real estate transactions. Many already offer workshops on reducing debt and cleaning up credit, so add to that education on what to expect in the steps to buying a home. First-time buyers rarely understand mortgage terms and how to prequalify – or, for that matter, what prequalifying means.

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

Tina Powers

Chief Operating Officer

CU Realty Services

Scottsdale, Ariz.