First Steps for You:
Buying a property in Hawaii is one of life’s most important investments and exciting adventures. The Pacific Properties Team can guide you through the unique Honolulu landscape with their market knowledge, strong real estate community relationships, best- in-class network of experts. This informative guide will empower you with the knowledge needed to make confident decisions when purchasing a home in the world’s most loved city.
Check your Credit
We recommend to all our clients that they check their credit before getting a pre-approval from a bank. The reason is that if your bank pulls a credit report and then there is some negative issue on the report (missed payment, incorrect data, etc.) that will likely affect your interest rate, and the bank is obligated to use that credit score for 90 days and cannot "re- pull" the credit report until the current 90-day period expires. If we discover an issue with your credit profile, it is helpful to have a complete report before the bank gets a copy.
Visit www.regalcredit.com to obtain your report. Regal Financial is a great company that can pull your credit for $50 per person. Reports are sent usually within one business day. Regal can also help improve your credit or correct any errors if your score needs improvement. Reports obtained through sources other than a bank or mortgage broker do not contain all 3 FICO scores, and often provide information for only 2 years. A tri-merge report obtained from Regal Financial is the same report that banks and lenders use. It will have a full 7-year history and all 3 FICO scores.
If you see any errors, collections, delinquencies, etc. on your report, DO NOT PAY them before consulting an expert. Sometimes paying an old collection can actually damage your score.
Reach out to a lender and/or mortgage broker to get a pre-approval letter. Once you are sure your credit score is accurate and you're satisfied with your score (and keep in mind that a FICO score over 780 will qualify for the best rates) then it's time to contact a potential lender to get pre-approved. The bank will want documentation of your income, assets, etc. They will run a credit history and issue you a pre-approval letter, which is important to have before we start seeing property. The conversation with your lender can also help us determine how much of a loan you qualify for. Below are the lenders and mortgage bankers & brokers we recommend most to all our clients.
Ubaldo Leon | RPM Mortgage | firstname.lastname@example.org | Cell: (310) 927-5369 | License: #01470996
Jennifer Gershman | Bank of Hawaii | Jennifer.Gershman@boh.com | Phone: (808) 694-4888 or (808) 291-7270 | NMLS ID: # 725064
Tina Kang | Island Pacific Home Loans | email@example.com | Phone: (808) 561-5656 | NMLS ID: # 382117
When We Start Seeing Properties
Let us know if you see any listings online that catch your eye. We can answer any questions you might have, or schedule an appointment to see the property.
Please remember to let us handle any communications with the seller’s broker on your behalf—if you have a question, just shoot us an email or text with the link rather than reaching out to the seller’s broker. If you attend an open house without us present, just list your name as the customer and one of our names and contact info as your agent/broker.
Timeline for Buying a Property: Overview
Now that you’re ready to start your search, here is a general timeline of events. The very first step is to preview properties and schedule appointments with us. Once you decide to make an offer on a home, in most cases, it can take an average of 45 to 60 days to complete the closing process unless you are paying all cash.
Prepare the Offer: 1 day
Negotiate the Offer and Acceptance: 2-5 days
Escrow Initial Deposit: 1-2 days after opening escrow
Escrow Second Deposit: 2 Business Days After the Home Inspection acceptance
Home Inspection: 1-14 business days
Loan Application & Appraisal: 2-7 days
Loan Approval and Commitment Letter: 1-3 weeks
Final Walk-Through: 1 day
Transaction Closing: 2-3 hours
Get Prepared with Your Financing
Learning about financing options, and what you can afford before you start looking for a home will save time and streamline the buying process. The Pacific Properties Team will arrange a meeting with a mortgage broker who will answer your questions about the loan process and determine a comfortable price range. During this early phase of the loan process there are two levels of endorsement:
Based on the information you provide during your initial conversation with a mortgage broker, you are potentially qualified for a stated loan amount, assuming full and accurate disclosure.
You will next provide your mortgage broker with information for a detailed background and financial check (including tax returns, credit check & income history). You'll then get a letter from the lender stating the amount the lending institution would loan you. This commitment is valid for about 60 days. As a note, most sellers require buyers to provide a pre-approval letter with an offer letter.