From his humble beginnings in 1930s Los Angeles, my father learned that hard work—shining shoes, selling newspapers and picking vegetables in the fields of Central California—and saving money were a path to a better life. Early on, he saw the value of investing in real estate and bought his first house in 1955 for $10,000.

It’s a familiar story—starting in a modest 1,000 square-foot home (with six kids!) and slowly moving up to a larger house in a better neighborhood. My feelings on homeownership were shaped by my father’s accomplishments and his belief that it should be available to anyone who was willing to work for it.

But homeownership today is more complex than in my father’s time. And with the global coronavirus pandemic (COVID-19) now unfolding as an economic crisis, the dream of owning a home may seem out of reach for potential homebuyers.

Lenders and other housing professionals and advisors can help first-time homebuyers understand the mortgage process and available resources and options, particularly during financially turbulent times.

Here are a few tips I offer.

  1. Help potential homebuyers see ownership as valuable and feasible

In my father’s day, few people preferred renting over owning unless affordability stood in the way. But today—even during prosperous times—some people opt for renting over owning based partly on misconceptions about the options available to them and how wealth grows through ownership. However, lenders can:

  • Educate on the stability offered by a fixed-rate mortgage and building equity over the long term.
  • Ensure potential homebuyers who are self-employed—a growing segment of the population—understand their status won’t be a disadvantage when applying for a mortgage.
  • Communicate that being cost-burdened prohibits people from building up an emergency fund to get through unexpected hard times. A Freddie Mac survey shows 84% of renters believe renting is more affordable than owning, yet 42% of renters paid more than a third of their household income on rent compared to 24% of owners on their mortgage.
  1. Be a trusted guide through the mortgage process

Most first-time homebuyers have some trepidation about going through the mortgage process, especially with today’s uncertainty. Housing professionals can play a key role early on by:

  • Assessing where the homebuyer sits on the financial literacy scale. Look for teachable moments and use pre-purchase counseling to educate first-time homebuyers—a practice that has been proven to reduce delinquencies by 29%, according to one Freddie Mac study.
  • Educating on building and maintaining credit, responsible homeownership practices, and what to do in times of trouble.
  • Emphasizing the importance of getting pre-qualified, then set expectations by preparing borrowers for the homebuying timeline.

Today, housing professionals are armed with more tools and resources to help first-time buyers.

  1. Present the full range of first-time buyer mortgage options

When I bought my first house, I didn’t know anything about the process. I paid excessive fees and a high interest rate. I was young and educated, but with no mortgage experience. Today, housing professionals are armed with more tools and resources to help first-time buyers, particularly in the affordable market. For example:

  • Increase your retention and referrals by staying current on new mortgage options for first-time homebuyers, such as low down-payment loans for qualified borrowers and factory-built housing.
  • Use new tools that give a realistic view of a client’s risk and eligibility.
  • Nurture personal relationships and help borrowers understand mortgage products so they can choose the one that’s best for them.

My father passed away a few years ago, and today my mother lives in her house free and clear. It’s an  important part of her retirement. I was lucky to grow up in homes we owned. It formed my belief that homeownership was something I would have and, like my father, use to create stability for my family.

Now is a critical time for everyone in the home-buying ecosystem. We need to use every resource at our disposal to help more first-time homebuyers start writing their own homeownership stories.