Things You Need to Know:

Buying real estate can be a complicated task!

Buying a home is likely the largest investment you will ever make.

We will be pleased to help you. Contact us at: email@kohalacoastproperties.com and let's get started!

If you don't want to pay rent anymore, want to settle down, make a good investment, balance your portfolio of investments, increase your tax benefits, leverage investments, relocate... buying real estate may be the answer for you!

Process:

• Get pre-qualified by a mortgage broker/lender if you will be purchasing your real estate with a mortgage. How much are you able to borrow for the particular property you are interested in buying? How much cash do you have to invest? Choose a lender that you feel comfortable with and will address your needs and concerns in a positive manner. Be prepared for a credit check.
• Know there will be additional costs, such as: loan application fee, credit report, state mortgage recording fee, title insurance, homeownerÕs insurance, possibly Private Mortgage Insurance, inspection fee, interest from date of closing till the end of the month, prepaid taxes and insurance, and escrow fees.
• Choose a realtor whom you feel comfortable with and is knowledgeable and professional.
• Make a wish list for your housing needs / wants. Know your price range, desired size, amount of bedrooms and baths, size of property, location. Discuss with your realtor.
• Get and review MLS (Multiple Listing Service) data from your realtor.
• Go on preset appointments with your realtor to look at property.
• Be willing to be flexible in your specific wants and fill your needs based on the search parameters you have provided.
• Select a property.
• Have your realtor do a CMA (Comparative Market Analysis) of the properties presently on the market, under contract, .soon to close as well as like kind properties that have recently been sold.
• Make an offer based on the information you have as well as the present applicable market happenings and trends. Your realtor will be able to attain information and use it to best help you get the property for the best price and terms available.
• Look at the property selected a second time, with sharp eyes, looking for things like stains on ceilings, or carpets that could indicate water damage. Make sure to carefully read the SellerÕs Real Property Disclosure Statement and ask any pertinent questions in regards to the condition and repair of the property.
• Your realtor will prepare a "D.R.O.A." Deposit, Receipt, Offer, Acceptance. Read thru it and make sure you know the deadlines for acceptance, title report, termite inspections, home inspections, staking, survey, reviewing disclosures, etc.
• Have a reasonable "earnest money deposit" available for a down payment or deposit on an accepted contract, to be deposited into escrow on your behalf.
• Always have your realtor arrange a home inspection, and give you numerous names of inspectors, of the property you are purchasing. If major issues with the structure or property are uncovered, make sure they get addressed now.
• Visit your mortgage lender and ask about the mortgage process. Have a clear understanding of what your responsibilities are. Be prepared to pay for an appraisal of the property. Sometimes, dependant on the local market, this may take some time. Your realtor you be aware of these things and accommodate the time periods accordingly.
• Your realtor will have an escrow company open up escrow for your purchase. The escrow company will provide a title report, showing the ownership interest being conveyed as well as any encumbrances, easements and liens against the property. Make sure you receive and review all of the documents. A good realtor will follow the escrow and make sure things move along as quickly and efficiently as possible.
• Be prepared to purchase homeowner's insurance coverage for fire and storm damages. Certain property features can result in lower premium charges.
• Most lenders will require a clean termite inspection report prior to funding a loan. Your realtor can set up a termite inspection. There are certain time limitations that will apply.
• Your realtor can order a survey or a staking of the property to verify whether or not there are any potential encroachments over boundary lines.
• Be prepared, generally a few days before closing, to do a final walk-thru inspection to ensure the property has been maintained from contract date until closing.
• Have any additional funds needed at closing ready to be either transferred or wired a week or so before closing.
• If you are purchasing from off island or out of state, factor in extra time for documents to be overnighted back and forth. Have a notary ready to notorize any necessary documents.
• Once the funds have been submitted and the title company has completed all the paper work, the conveyance documents will be sent to the State of Hawaii Bureau of Conveyance for recording.(This usually takes a few business days)
• Congratulations! Now that the paperwork is recorded you are the new owner!
• Note that even though you have signed all the papers and given your funds to the title company, you will not usually take possession for a few days until the recordation is complete.

EMAIL OR CALL US AT: email@kohalacoastproperties.net 808-886-6600