Getting A Home Mortgage In Hawaii
How Much House Can You Afford?
Get a better understanding of how the home loan process works, and you’ll take a load off your shoulders. Below we’ve outlined the steps to securing financing for your new Hawaii home!
1. Sort and organize all necessary documents
Lenders will request a long list of documents when you apply for a mortgage, so getting them ready early will save you time. What they want to see is proof that you can repay your loan, which includes documents such as a record of your employment, bank statements, tax returns, credit checks, and pay stubs. They’ll also take into consideration costs such as child support and alimony payments. The more information you can provide about your income, the better. If you have debt, your credit check should show that you’re regularly working towards paying it off.
2. Get pre-qualified or pre-approved
Getting an idea of how much of a loan you qualify for can happen in two different ways. The first is to get pre-qualified, which means the lender takes a quick look at your files and gives you a price range.
Pre-approval is lengthier, and while you do have to wait, we almost always recommend getting pre-approved for a mortgage. It shows that you’re able to buy, which can give you a leg up during the negotiation stages.
Either way, knowing what you can afford will save you time when searching for homes, not to mention help keep expectations in sight.
3. Set up the loan
From the length of the loan to the rates and fees, there’s a long list of items to consider when you’re putting together a loan. This is there your loan officer will really lend a hand. This tedious process is often simplified when you, the officer, and your REALTOR work together to put together a loan that meets your needs.
4. Finalize approval
Now that you have the house of your dreams in sight, your loan officer will return to all of the documentation you supplied during the pre-approval or pre-qualification steps. They’ll look at employment, credit, and other assets. If they request any more documents, provide them as quickly as possible.
It’s important to avoid making any large purchases until the loan closes, so you don’t set off any red flags. Now you can schedule your closing date and time!
5. Close on the loan
Closing on the loan means sealing the deal on your financing. All of the final documents will be signed, typically with a notary present. Double check the loan amount and all other terms, including the interest rate. Look at details as simple as your name and address; you don’t want any hiccups. Pay your closing costs and down payments, and you’ll be on your way!
This mortgage calculator can be used to figure out monthly payments of a home mortgage loan, based on the home’s sale price, the term of the loan desired, buyer’s down payment percentage, and the loan’s interest rate. This calculator factors in PMI (Private Mortgage Insurance) for loans where less than 20% is put as a down payment. Also taken into consideration are the town property taxes, and their effect on the total monthly mortgage payment.
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