With housing prices dipping down, many island residents may be considering buying a home for the first time.

They are out there - large homes, small homes, condos for sale. Shopping for a new home, especially for the first time, can be an exciting experience. But first things first - you need to talk to a lender.

"They'll decide with you how much loan you can qualify for. Once you know how much loan you can qualify for, how much down payment that you have, you know how much house that you can afford," said Gayle Ishima of Central Pacific.

Surprisingly, Ishima says people may be in line for more house than they think.

"I think people here generally underestimate what they can buy and I think that's true in Hawaii because they think that the home prices are so high that they can't qualify."

Lenders will help with paper work and there's more good news for first time home buyers.

"Extra consideration for first time home buyers. In some places, they even waive certain fees for first time home buyers.">

Things have changed since your grandparents bought their first home. While savings and other assets are important, home mortgage loans are more flexible than they used to be.

"Oh, yeah, there are tons of combinations and with government programs and some private programs, you can get a loan for - not 20 percent down but maybe five percent down."

There are still words of caution about qualifying for a loan. Every lender will look at your credit report to see what kind of loan customer you are.

"Please pay your bills on time because that is ultimately the main thing. If you can't pay off your balances all at once, at least make the minimum payment."

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