Buyers Guide

Securing a loan often begins with a phone appointment, where the lender gathers key information for pre-qualification. After this, they'll assist you in completing the loan application and conducting a credit check. Once the application is complete, they can request additional documentation and discuss fees, down payment options, and an estimate of housing expenses and closing costs.

As part of the mortgage process, the lender will meticulously assess your income, assets, and credit history to evaluate your eligibility for the mortgage. If you meet the criteria, they will issue a pre-approval letter, which is a significant milestone in your home-buying journey.

While the pre-approval letter is a key indicator of your readiness to make an offer, there are times when you might not be ready to take
this step immediately. This could be due to various factors that don't quite align with the lender's requirements at the moment. In these instances, the lender is there to offer supportive guidance and develop a personalized plan to prepare you for a future purchase, ensuring you're on the right track to achieving your home-buying goals. This proactive approach ensures that you have a clear path forward to qualify for a mortgage in the near future.

Once all parties have signed the loan documents, they are returned to the lender, and the package is reviewed. If all the forms have been properly executed, the lender sends the loan funds by wire transfer.

REMEMBER, THERE IS NO SUCH THING AS A "PERFECT HOME."

It's really important to know what you're looking for when we begin the home search. After pre-approval, the next step is to list all the features of a home that you would like and qualify them as follows:

Wish List: It is important to know what you are looking for before starting a house search. The Wish List is the starting point. It includes ALL features in a property, both realistic and unrealistic. Be sure to understand why you value each item on the Wish List.

Wants: The Want List are the important features you desire in the next home. Please understand that there is no such thing as a perfect home. Trade offs are necessary in a successful home search. Ideally, a property will hit 85% of your list. Try to limit your list to no more than 10 items.

Needs: The Needs List are the vital few features which are necessary for you to move forward. This list should be 1 to 3 items.

As you begin your search process it is important to note that in Hawaii your due diligence is done once your offer has been accepted and you are in contract (i.e. most of the time you will not be provided the Seller Disclosure, Condo Docs, Inclusions/Exclusions, etc before writing an offer).

The seller can respond to the offer these ways: Accept: Their signature finalizes the contract, and it becomes legally binding.

Counter offer: The seller may make changes to contract items like the price, closing date or conditions. You may then accept, reject or make another counter offer. Only when one of the parties signs an unconditional acceptance does it become legally binding.

Rejection: The seller may reject the offer.

As part of the sales contract you have the right to inspect the mechanical, electrical, plumbing and structural portions of the property along with any concerns that you have about anything that affects the property. The home inspection is one of the most important contingencies when you are under contract.

Physical Inspection: Usually done by a General Home Inspector, a Physical Inspection is a thorough inspection of the house. The inspection results in an overall assessment of the present condition of the property. If conditions warrant, the Home Inspector may recommend additional inspections such as, roof, wastewater, mold, foundation or pool. They will provide an itemized report for your review. If repairs are needed, you can request that the seller make them, or if they are unacceptable you may cancel the contract as long as you are still within your contingency period.

Pest Report: The Pest Report will indicate any termite infestation. The seller usually provides this report. You may obtain your own report.

I encourage you to meet the inspector at the end of the inspection so that they may point out any concerns about the property and also answer any questions that you have.

A contingency is a clause in the purchase contract that describes certain conditions that must be met and agreed upon by both buyer and seller before the contract is binding. Some of the common types of contingencies
we see are:

• Mortgage
• Home Inspection
• Verification of Cash Funds
• Initial Earnest Money Deposit
• Review of Documents
• Loan Conditions

• 40% of Title insurance
• Cost of drafting mortgage and note or agreement of sale
• Cost of obtaining Buyer's consents
• Buyer's notary fees
• All recording fees except documents to clear Seller's title
• 50% of Escrow fee
• Condominium and Association ownership transfer fees
• FHA or VA discount points and any
  mortgage fees