Financing Information

You’ve ready to look for that perfect house…condo….land… but before you start looking, make sure you have been pre-qualified by a lender, preferably a local lender. Nothing is more discouraging than to find something you love, only to find you over-estimated your buying power. I especially recommend being pre-qualified prior to making an offer as it conveys a level of seriousness to the seller when you present your offer with a “pre-qual” letter attached. That seller knows you’ve done your homework. Plus, once the offer is accepted, contractually you are on a timeline to complete the loan application and provide a pre-qual letter. Better to have a lender in place and your pre-qual letter in hand and avoid unnecessary stress.

Why a local lender? Simply put, because they know Hawaii. Mainland lenders are not familiar with Hawaii real estate terms like Condhotel, ADU, CPR, etc. Lack of clarity on the underwriters’ part leaves them shaking their heads and asking for documentation upon documentation. This can lead to a delay in closing or perhaps even cause you to lose the transaction. And if they do fund the loan, you may find that the interest rate and / or points have changed from the original offering because they did not initially fully understand the property they are financing. If you do choose a mainland lender, ask them if they have loaned in Hawaii on the type of property you are buying. Do your best to get some degree of clarity as to if your lender will be able to provide the loan discussed.

Talk to several lenders to see who can provide the best loan package and who will work best to meet your needs. If you are a Hawaii resident, ask about any “specialty loans” or assistance programs such as those available for first time homeowners, teachers, etc. You can ask your real estate agent for guidance if you are not sure who or what to ask. Do you belong to a credit union? Don’t forget to check with them also.

Since it’s impossible for me to stay on top of all the loan programs, I prefer to recommend several lenders that I know can and do perform; lenders who take good care of my clients and then let you decide.

Mortgage bankers / brokers

	Ian Emberson Executive Loan Officer, AVP Bank of Hawaii Kauai Loan Center 4405 Kukui Grove St., Ste. 102 Lihue, HI 96766	Phone: 808 241-7290 Cell: 808 652-4740 Fax: 808 241-7287 E-mail: iemberson@boh.com
	Click here for Bank of Hawaii mortgage rates.