In Partnership with the Southern Weekend

Tips to prepare financially before moving out on your own

Make your dreams of home ownershp a reality

Sponsored by American Savings Bank

With real estate being so expensive here in Hawaii, it’s pretty common to see young adults living with their parents well after graduation. On the other hand, what if you feel ready to move out and live on your own? HI Now host Kanoe Gibson is with Manny August with American Savings Bank to help explain how you can make it happen.

Whether you are renting or buying a home, it’s likely that your housing costs represent a big chunk of your monthly budget. According to a Business Insider article from 2019, Hawaii has the highest median home price in the nation at a $635,000. This can be incredibly intimidating for first-time home buyers – especially young people, who likely are also dealing with student loans and are just starting to make a steady income during the early stages of their careers.

Home ownership might seem like a dream, but American Savings Bank can help make it a reality. Take the bank’s Financial Checkup to see how ready you are. Once you take your Financial Checkup, you’ll receive some specific next steps on how to reach your goal. It’s always key to start with a budget – figure out what your current assets are, estimate how much money you can save, how much of a down payment you can afford and how much of a monthly mortgage payment you can manage.

This is also a good time to consult with a loan officer so you can figure out how much of a loan you can prequalify for and approximately how much of a down payment you’ll need. Once you have this information, you can determine what you can truly afford based on your savings and spending patterns. American Savings Bank also has a great free Mortgage Calculator on its website that can help with this.

Once you have your budget, you can really get to work on specific savings goals – such as for your down payment, monthly mortgage cost and unexpected costs such as home repairs. Your loan officer can help you to understand your credit score as well as all of your borrowing options. For example, some first-time homeowners have access to programs that require less than the typical 20 percent down payment.

The most important thing to do is set concrete goals and hold yourself to them! Whether you are planning to buy a home on your own or with a partner, it’s important to follow through on your budget and savings. Once you set your goals, monitor your progress at least once a month. Banks such as American Savings Bank and organizations such as the Hawaii HomeOwnership Center also offer free seminars for prospective homeowners on the process.

You can also always stop by one of American Saving’s 49 branches statewide to meet with one of its loan officers and get help. Just visit asbhawaii.com to sign up for an upcoming seminar or contact one of its loan officers.

For more information: Asbhawaii.com, Instagram: @asbhawaii, Facebook: American Savings Bank