An important ingredient in a successful home search is knowing how much you can afford. You don’t want to fall in love with a property only to find out it’s outside your price range. That’s why we recommend getting a Mortgage Pre-Approval. This is a document from your bank or other lender stating how much of a mortgage they are willing to give you. There are two advantages to getting this pre-approval: It gives you the peace-of-mind of knowing you can afford homes you view on the market and It’s a sign to sellers that you are a serious, prepared buyer – which gives you the edge when making an offer.
You can arrange for a Mortgage Pre-Approval with your bank or other lender, or by working with a good mortgage broker. We’re well-connected in the local real estate scene, so if you want us to recommend a reputable broker or lender, please contact us. One of the most important aspects of buying in Hawaii is a local lender. Mainland lenders don’t understand our process, timeline or recordation process… and are often done for the day about the time we are thinking about lunch. So, it can make a difficult process, even more so. We have a host of lenders we can recommend that previous clients were happy with and we are happy to share them with you.
Banks and lenders use specific criteria to determine how much of a mortgage they’re willing to offer you. They look at your income, expenses, credit history and employment status, as well as the down payment you plan to make on a home. It may seem like a scary process, but it is actually straightforward. You can usually get a Mortgage Pre-Approval in a day. You’ll be glad that you did. By knowing what you can afford, you can confidently shop within that price range. For example, if you qualify for a $250,000 mortgage, and you have another $100,000 available as a down payment, you can look for homes in the $350,000 range. However, maybe what you want is a payment of no more than X. Knowing how much you can buy isn’t helpful, you need to know what price points will get you to your payment goal. We want to make sure that, not only do you find your dream home, you find a payment you are comfortable with!
The really great properties in Hawaii go FAST! So be sure to get your pre-approval done before any serious shopping. We would hate it if you found your dream home, but lost out because of the delay in getting the pre-approval in. Most Sellers in Hawaii won’t even look at an offer without a pre-approval attached. So, go ahead and get this important step out of the way! Have questions about arranging financing? Please submit the form below or call or email us.
