Unless you are one of the approximately four percent of the nation's home buyers that pay cash, chances are you are going to need some kind of a mortgage in order to purchase your Hawaii Kai dream home. But before you start pulling credit and signing papers there are a few things that you should know. Having a little info ahead of time can save you heartache- and money.
There are many different types of loans out there and the selection is changing all of the time. When you start the loan process you may want to consider sitting down with your bank and seeing what they can offer. If you have been a loyal customer they may give you special savings for giving them the opportunity.
Many people go online to shop for a mortgage. Although it is convenient to do so, it can be an aggravating situation. Online lenders typically work in another state which means you will be at the mercy of returned phone calls for answers. If they are in a different time zone then it creates a whole new set of problems. Plus, a broker in another state may not be completely familiar with the lending guidelines in Hawaii.
In recent years, more than ever, your rating will be determined by your overall credit score. A high rating rewards you with better options from lenders. Make sure that you do not get in the habit of having your credit pulled repeatedly by different lenders while you shop. This could negatively affect your score.
Depending on how much you put down will determine which loans you qualify for. Financing more than 80 percent means you will have to pay for either mortgage insurance, the V.A., F.H.A. or another third party group. This is their way of insuring the loan against default. These are all good loans, but remember if you can afford to put more down you may be saving on that insurance each payment.
To view current Hawaii Kai listings or for more information about the Hawaii real estate market please visit our Hawaii Kai real estate website or give us a call at 888.450.4140.