“First Time Home Buyer Challenges in 2016”

“First Time Home Buyer Challenges in 2016”



I worked with 9 different prospective home buyers last week, 6 of which were first time home buyers. I could do the pre-qualification letters for four of them.


The other two will be able to be done in the future. In one case there was a bankruptcy that is 18 months old so we need to wait 6 more months. They did re-establish some credit and the scores will look even better 6 months from now.


The other first time home buyer had no credit, paid cash for everything. We are now working on creating 2 additional lines of alternative credit. He has a cell phone in his name, but nothing else. I have now coached him on what else he needs to do. I also have him setting up a couple of credit cards as well. Sure he is a year away but at least he has a plan.


There are many like these two individuals with all kinds of issues but unless they are coached on their next steps, they do nothing.


Who else do you know that needs my help?

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Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com



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Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

Equal Housing Statement: We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing becuase of race, color, religion, sex, handicap, familial status, or national origin.

Comment balloon 29 commentsJoe Petrowsky • December 16 2015 12:52PM


Glad they found you, Joe as the coaching will help them meet their goals.

Posted by Women of Westchester Working Together, Women helping Women get ahead (Women of Westchester Working Together) almost 4 years ago

Hi Joe.  Looks like you are busy.  Good for your business as well as those you are helping.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) almost 4 years ago

Joe: The more you help, the more tell their friends and family, continually widening the real estate education circle. Congrats on being so busy.

Posted by Anita Clark, Realtor - Homes for Sale in Warner Robins GA (ColdwellBanker SSK Realtors ~ 478.960.8055) almost 4 years ago

Good morning Joe.  You sir are one busy man.  Hope you get a breather next week at lest next Thursday and Friday

Posted by James Dray, Exceptional Agents, Outstanding Results (Fathom Realty) almost 4 years ago

That sounds like a wonderful week!

Credit scores can be so frustrating.

I know a few people with no scores because they have been able to live without ever using credit. I think those people should actually get better rates - if they can pay rent and buy cars and pay all their bills without ever doing it on credit, but by saving and being smart with their money, they should get special treatment. 

My credit scores are great, but they just went down 20 points because I've only been using one credit card. I think people who don't use a handful of cards should be rewarded not penalized. 

A few miscellaneous thoughts this morning!


Posted by Kat Palmiotti, The House Kat (406-270-3667, kat@thehousekat.com, Broker, Blackstone Realty Group - brokered by eXp Realty) almost 4 years ago

Good morning Joe,

You are the Master of taking care of clients.

I also have two that are waiting and one should ready in March the other will take longer because of the student loan problem.

Make yourself a great day.

Posted by Raymond E. Camp, Licensed Real Estate Salesperson Greater Rochester (Howard Hanna Real Estate Services) almost 4 years ago

At least you guided these 2 in the right direction with a plan Joe!

Posted by Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400, Long Island Home and Condo Specialists (The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803) almost 4 years ago

Good morning Joe Petrowsky ,

All of these buyers were smart to have called you for advice. Now several have a plan and know when they can make a home purchase. Good job!

Posted by Dorie Dillard CRS GRI ABR, Serving Buyers & Sellers in NW Austin Real Estate (Coldwell Banker United Realtors® ~ 512.750.6899) almost 4 years ago

If anyone can help these first time home buyers, you're the man Joe.

Posted by Roger D. Mucci, Lets shake things up at your home today! (Shaken...with a Twist 216.633.2092) almost 4 years ago

Joe, in this day and age, it's hard to imagine there are really people out there who pay cash for everything!  It's interesting that it will take the all cash guy longer to establish credit that the recent bankruptcy!

Posted by Patricia Kennedy, Home in the Capital (RLAH Real Estate) almost 4 years ago

Good morning Joe. Few see the value of coaching and just want the easy transaction. Enjoy your day!

Posted by Wayne Martin, Real Estate Broker - Retired (Wayne M Martin) almost 4 years ago

Joe Petrowsky I am sure that not only do you coach these prospects , but you also check back a few times during the process to make sure they are on the right track. Good Post; buy prospects are fortunate to have you and your services.

Posted by Sandy Padula and Norm Padula, JD, GRI, Presence, Persistence & Perseverance (HomeSmart Realty West & Geneva Financial, Llc.) almost 4 years ago

Joe... based on your activity last week, I would say that first-time buyers will remain a force in the marketplace going into 2016. Here in Charlotte, the biggest issue for these buyers is the increasing cost of houses.

Posted by Nina Hollander, Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor (Coldwell Banker Residential Brokerage ) almost 4 years ago

Joe, I bet you do see many that are unable to purchase right now, but need some credit repair.

Posted by Joan Cox, Denver Real Estate - Selling One Home at a Time (House to Home, Inc. - Denver Real Estate - 720-231-6373) almost 4 years ago

Joe - if there is a designation for CMC "Certified Mortgage Coach" you definitely should get it.

Posted by Grant Schneider, Your Coach Helping You Create Successful Outcomes (Performance Development Strategies) almost 4 years ago


I agree with Grant Schneider.  You do a great job.  A

Posted by Ron and Alexandra Seigel, Luxury Real Estate Branding, Marketing & Strategy (Napa Consultants) almost 4 years ago

Joe great job in setting a plan in place for them.  Now we can only hope they follow through with the plan.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) almost 4 years ago

It sounds like a typical day in my real estate life.

Posted by Jayne Meaut, Graduate of Real Estate Institute (Exit Allstar Realty) almost 4 years ago

Good article Joe Petrowsky.  A large percentage of my clients are first time buyers. Their main challenge is the ability to save for a down payment and closing costs. Student loans, large car payments, and too much credit card debt make saving impossible,  leaving too little to pay for a mortgage.

Grant Schneider, there is a Certified Mortgage Coach designation.

Posted by Doug Kaller (Academy Mortgage, Reno, NV) almost 4 years ago

Credit issues for hone buyers are so critical to address and resolve quickly so that the press will move forward for them

Posted by Ed Silva, Central CT Real Estate Broker Serving all equally (RE/MAX Professionals, CT 203-206-0754 ) almost 4 years ago

Great job, Joe.  It's true most don't ask if there is anything that can be done so they can qualify for a mortgage.

Posted by Pamela Seley, Residential Real Estate Agent serving SW RivCo CA (West Coast Realty Division) almost 4 years ago


Coaching your customers will help them become homeowners.

Good luck and success.

Lou Ludwig

Posted by Lou Ludwig, Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC (Ludwig & Associates) almost 4 years ago


With the help you have provided my guess is some of these will refer others to you.

I suspect there are many first time buyers who simply don't understand credit issues, and perhaps never learned from their parents or others how important it is, how to establish it, and most importantly how to keep it in good shape.


Posted by Jeff Dowler, CRS, The Southern California Relocation Dude (Solutions Real Estate ) almost 4 years ago

Joe, serving others may not result in immediate business, but it is a fine way to keep the pipeline flowing. And many consumers will appreciate your efforts.

Posted by John Wiley, Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA (Right Move Real Estate Group- EXP Realty) almost 4 years ago

Well Joe.  Sounds like you had a great week!  The nice thing about find those buyers that are not able to buy now (due to past financial/bankruptcies or no credit at all) is that if gives you (and us professional Realtors) the chance to coach these buyers so they know what they need to do so that one day they can be in a position to buy a home.  When that happens it's a win/win.  They get the house and we get a client for life who tells their friends and family. It's all good!

Posted by Diana Dahlberg, Real Estate in Kenosha, WI since 1994 262-308-3563 (1 Month Realty) almost 4 years ago

It sounds like you have a solid aggressive approach.  I like that in a lender.

Posted by Gene Riemenschneider, Turning Houses into Homes (Home Point Real Estate) almost 4 years ago

Hang in there with the challenging ones, it will pay off!

Posted by Mary Hutchison, SRES, ABR, Experienced Agent in Kansas City Metro area (Better Homes and Gardens Real Estate-Kansas City Homes) almost 4 years ago

I have been having the same issues with "Credit Ghosts" - they thought that they were doing the right thing by paying cash all along and not accumulating debt, isn't that what your Grandfather told you to do???  That was then and this is now...Credit needs to be exercised to make sure you can handle it, a hard concept for many especially Grandpa but that is the status of creditworthiness in 2016!

Posted by MaryBeth Mills Muldowney, Massachusetts Broker Owner (TradeWinds Realty Group LLC) almost 4 years ago

Great post Joe and congrats on helping first time home buyers.  I hope your phone rings off the hook in 2016!

Posted by Jan Green, HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN (Value Added Service, 602-620-2699) almost 4 years ago