If you are a first time homebuyer or a homebuyer returning to an unfamiliar market, you may be time to educate yourself. With the Internet, it is easier than ever to gain access to information or you can sit down over a cup of coffee with your Realtor and get all of your facts. Call "Honolulu Realtors Mike and Gayle" and they will even buy the coffee!
The Real Estate Market can almost be thought of as "Alive". It has mood swings, up days and down days. It does not tend to like Rainy Days, Extreme Weather and kind of like the Grinch that Stole Christmas, it does not much care for the Holidays. When a Buyer enters the Real Estate Market, the Buyer must build an understanding of That Specific Housing Market.
You must determine what you can afford by locking in your interest rate with a qualified Mortgage Broker and knowing the corresponding monthly payment. Locking in an Interest Rate and Floating an Interest Rate for a residential mortgage are two very different things; you pay to float a rate. The amount you understand to be your monthly mortgage payment has to include Taxes, Insurance, Maintenance Fees, Association Fees and any other reoccurring monthly fees directly associated with your mortgage payment.
The next step is to find a home that is a good fit for you and for your lifestyle. Not
so long ago, a buyer would call a Realtor and then the Realtor would show them the homes that the Realtor thought would be a good fit for them. Buyers would also ask friends about Oahu homes for sale in the areas the friends lived in, look in the newspaper in Honolulu Homes For Sale section, go to all the open houses and then still only have a partial view of all of their options. Today we have the Internet. Eighty percent plus of all people that are going to enter into a Real Estate Transaction start on the internet doing their research to educate themselves. This includes both Buyers and Sellers. Property Searches on websites range from awkward to highly functional. We put a TON of thought into ours and looked at it from our client's perspective.
Because the Internet is the way, many people find some of their own properties on Oahu, our job in the initial stages has become much easier. As a result we have decided that 6% listings, 3% to the buyer's agent and 3% to the seller's agent) is too much. We have started rebating 20% of our buyer's side commission back to our buyer clients. Call Honolulu Realtors Mike and Gayle for more information.
Even with our 20% Rebate Program, this transaction will likely become your largest asset ever so there is little room for error. On average, the National Association of Realtors estimates that homes double in value every ten years.
The entire process can seem overwhelming, so break it down to a step-by-step process with the result being that you will own your own home. We use time lines and reminder calls about meetings, inspections, signings and closing to keep us all on track.
To this end, Gayle and I have created a list of Do's and Don'ts to help buyers in this market. The more you understand about the process, the more confidence you will have and better decisions you will make about your new home.
The Dos
DO educate yourself on housing information in the areas you might want to buy in. Begin your search by arming yourself with information. RealtyTimes Market Conditions gives you a snapshot of thousands of local markets. Stick with the Local, known, long-time real estate information websites like GreatHawaiianHomes.com and Hulupala.com and you will learn more than you need to know about Oahu homes for sale and buying real estate on Oahu.
DO examine your credit score. You need to know your credit score. You may need to request corrections if 
there are errors. You may need to adjust your habits if your credit behavior is less than stellar. You might also need to take those steps before seeking a loan. This is an EXCELLENT time to look for a Mortgage Broker. The Mortgage Professional you work with should be very professional, treat you well, return calls and emails quickly and hopefully be able to sit with you and let you know the steps you need to take, if any to bring your score up, or bow at you feet if you have a great score already. Different loan programs, like any other product, have different "Costs". These Costs may be points, or fees, or the necessity or a better than average credit score. Click on the picture of Honolulu Realtor Gayle Fujita Ramsey and Shiloh for a link to her website talking about Credit Score Repair.
Your credit report is free from AnnualCreditReport.com . You can stagger retrieval of your credit report from each of the big three credit bureaus, getting one from a different agency every four months. Your report is free, but you may have to pay a small fee for your credit score (a numerical scoring of your creditworthiness) that lenders use to determine everything from your Mortgage Rate to Points they will charge you for making the loan. Learn more about your score at Privacy Rights Clearing House.
DO get yourself Pre-Qualified or Pre-Approved. Knowing what you are looking for as far as price will greatly help you in your search for your new home. The truth is the people tend to try to buy as much home as they can and often find themselves struggling to make the next 30 years of payments that follow. Go with the numbers and stay unemotional, until you find the right home at the right price, then do Your Happy Dance! An excellent Oahu Mortgage Broker is Tana Feeley CMPS, Vice President of Central Pacific HomeLoans. Sellers will want to work with the buyer that has the best chance of completing the transaction and not falling out of escrow due to financing problems.
DO work with Your Realtor to line up Your Team of Professionals. As a Realtor, I do Real Estate Transactions day in and day out. I maintain a list Real Estate Professionals that I will suggest to my clients to use. The reason for this is that I have seen great mortgage brokers, inspectors, architects and contractors and I have seen bad ones. My job is to protect you and your best interest. When I have a client that tells me they have a Mortgage Broker already to go, I cringe. I keep an open mind and hope the person is a great one. When calls are not being returned or the person has a poor attitude on the phone, red flags go up and I know I will have to be Extra Alert when it comes to their paperwork. We often do other people's jobs to help a transaction move smoothly and protect our clients.
DO look down the road ahead and buy a home that will fit into your lifestyle and needs. This may not be the last home you purchase so try to anticipate upcoming events. Starting a family or sending the kids off to college, starting a new business, starting a new job, Possible Elder Family Care are all things to take into consideration when deciding on your new home.
DO set your priorities of Needs vs. Wants vs. MUST HAVES. Write these items down on paper so you will stay on track during your search. It is OK to change the list during the search, but when you do, put it on the paper!
The Don'ts
DON'T jump at the first house you see. Keep an open mind and compare everything you saw at the end of the day. Speak about what you liked and did not like about each homes as you leave with your Realtor.
DON'T buy more house than you can afford. Lenders will often loan you up to as much as your credit worthiness will allow, but that may not be what you can comfortably afford. ON the National News, we heard repeatedly, "It's not my fault. They told me I could afford the house and they gave me the money" (that house is now in foreclosure). It is better to live with a comfortable mortgage payment in a home that you can upgrade latter if you decide to. I have a client that bought a home in one of Oahu's Luxury Neighborhoods for $1,500,000 and she said, "Wow, It's like this house only cost us $600,000!" This is because they bought smaller home years ago for $600,000 and when their family grew; they sold the first and bought the new one. As the market moved up in value across the island, their home kept pace.
DON'T treat your home like a short-term investment. Homes appreciate and depreciate in cycles. These cycles aren't so predictable. Don't expect your home's value to skyrocket. Buy a home because you need a roof over your head, not for a quick profit.
DON'T try to exactly time the market. Trends happen year to year, not transaction to transaction. Buy your home because it fits your financial and lifestyle needs. More people miss a great opportunity because the market moves up and they sit on the fence because they missed the bottom. It's kind of like trying to take a picture of the exact moment a "Superball" (by Whamo) is in full contact with the ground before it jumps up thirty feet. Good Luck!
DON'T buy a complicated Mortgage Loan. Talk with your Realtor about what you are thinking of for your loan, we have heard some crazy stories and will happily share with you any red flags we see. In this market, shopping around for the best loan and MONTHLY PAYMENT is an excellent idea. Read every detail of your loan contract and get some help understanding terms and provisions that confuse you. Again, lifestyle is key. Get a loan that fits.
For more Dos and Don'ts call on "Honolulu Realtors Mike and Gayle."
Hulupala.com for Oahu Homes For Sale, Oahu Relocations, Oahu Real Estate Information, Oahu Realtors Mike Ramsey Fujita and Gayle Fujita Ramsey RAs, Relocation Kits for Oahu, Oahu Home Buyer Kits and Oahu Home Seller Kits.
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