To Purchase a Home or Not to Purchase a Home? That Is the Question
Senior Loan Officer
This is an age old question. Some people say it is all timing. Perhaps for the short term, but let’s look back in Hawaii’s homebuying history. If we look at the Leeward side of Oahu it is easy to visualize the changes that have taken place over the years.
Some of your parents or grandparents purchased a single family dwelling in Pearl City in the 1980s for $125,000 with an interest rate between 14% and 18%. This is correct…interest rates at that time ranged from 14% to 18%! Living in Pearl City was considered “living in the country”… hardly the way we think of Pearl City today. Some development had begun in Ewa Beach, Kapolei, Waikele, Royal Kunia, Mililani, and Waianae, but those neighborhoods at the time were “very country.” Now the master-planned communities developed in these areas are major population centers where the dream of home ownership has become a reality for tens of thousands of first time buyers.
Hawaii is a unique real estate market, much like San Francisco and New York City. The land beneath us is worth as much or more depending on the use and the location. Our real estate market has historically bounced back faster than residential real estate on the Mainland, primarily because the amount of land available for development is limited and our unique lifestyle, beaches, and excellent weather attract thousands of visitors each month, many of whom will decide to buy homes here.
If Hawaii is where you want to live, have you seriously looked at what is necessary to purchase a home? Shouldn’t you be talking to a lender to see if this is the time for you to purchase? Ask yourself the following questions that I call the “4 Cs.”
Do you have income that is ongoing and sufficient to make monthly payments? Will you be able to document all the income you receive with your tax returns and pay stubs?
Credit History (Character)
Your credit report is your lending fingerprint. Have you paid back money you have borrowed in the past? Have you been late in making payments or on time in meeting all your financial obligations? Are you ready to purchase a property today or should you talk to a lender to ensure that you are on the correct path to home ownership?
Do you have enough money for a down payment and your portion of the closing costs, if necessary? Will you be able to maintain your current debt, for example car loan, credit card, or any other ongoing payments, plus your new mortgage payment?
An appraisal of the home you are planning to purchase will be required. Is the contract price comparable to that of other homes recently sold in the neighborhood? Does the home require any major repair or is it in move-in condition?
Your first home purchase will require the assistance of a mortgage professional to find the best mortgage product to meet your needs. The best way to find out if you can qualify to purchase a home now or in the near future is to pick up the phone and call for a no-obligation consultation with an experienced lender. Please give me a call at 440-0916 or 349-7135 to set an appointment to meet with you at any time to find out if you are ready to own your own piece of paradise.