West Hawaii, and specifically Kailua Kona, is experiencing a tight housing market where homebuyers have to be able to make an offer quickly when they find a well priced home in good condition. If you are looking to purchase a home and obtain a mortgage in West Hawaii/Kona, we share some insider tips!
Here are important local tips:
- If the numbers make sense for you, taking a few steps at the beginning of the homebuying process can save you time, money and aggravation.
- Timeframes for closing on a purchase are currently running around 45 days.
- The process could be quicker, but it depends upon how quickly the buyer/borrower provides us with required information, i.e., tax returns, pay stubs, bank statements, etc.
- The best way to prepare for a purchase is for us, here at Point Financial, to meet with the potential homeowner either through email or a personal meeting.We can then prequalify you, ask for missing items and give you an idea of how much you can borrow.
1. Examine your credit. Right now, blemished credit or the inability to make a substantial down payment can derail your homeownership plans. That’s why it pays to look at your creditworthiness early in the home-buying process. Get your free annual credit report and comb through it for errors and unresolved issues. If you find mistakes, contact the credit reporting bureau to make sure they are corrected. It’s also a good idea to get your FICO score, which will cost you a small fee.
2. Get your docs in a row. Collect pay stubs, bank account statements, W-2s, tax returns for the last two years, statements from current loans and credit lines, and names and addresses of your landlords for the past two years. This may seem like a lot, but in this age of tight credit, don’t be surprised if you find you need a lot in the way of documentation.
3. Get preapproved. Getting preapproved for a mortgage helps you bargain from a position of strength when you are house hunting. We can work with you to get in the best position possible when we submit your documents for a loan you desire.
4. If at first you don’t succeed, try, try … the government? In the current tight credit market, consider getting a USDA loan. A USDA home loan from the USDA loan program, also known as the USDA Rural Development Guaranteed Housing Loan Program, is a mortgage loan offered to rural property owners by the United States Department of Agriculture. You can obtain a USDA loan with 100% financing. There are income limitations depending upon your family size. To qualify, borrowers cannot own another current principal residence. The rates for this program are usually lower than conventional rates. Call Point Financial for an appointment to discuss qualifications and program parameters on USDA loans.
The best way to understand all of your mortgages options, what you qualify for, what you need to get a mortgage, different progams, etc is to come and talk to us at Point Financial.
Contact us today and let’s get you into a home in Kailua, Kona! Call (808) 329-0900 or email email@example.com