Buyer's Hint: The Purchase Process

Of all the purchases in your life, the purchase of a home will probably be the largest and most fraught with emotion. To keep an even keel follow the following basic steps:

1. Get pre-qualified!
2. Research the Neighborhoods
3. Evaluate properties & Narrow the Search
4. Make the Offer and manage the Escrow Process
5. Secure the Financing and Finalize the Loan(s)
6. Get the Keys!!

Get Pre-Qualified
Pre-qualification differs from pre-approval in that it is a simple assessment of your current credit and earnings to determine they level of loan funds that you could qualify for and does not commit you to a specific mortgage company or loan. A pre-approval commits to a loan rate, points and other final loan information as if you were securing the actual mortgage. At a minimum you should have a pre-qualification letter from a mortgage company or broker, specific to the property you are making an offer on within a few days of an accepted offer. It is preferable in the competitive Hawaii market that you have the letter prepared to go in with the offer. A letter from a local lender is preferred over a mainland lender as a mainland lender may not understand Hawaii's unique land, appraisal, and recording issues.

Research the Neighborhoods
A good place to start is to link to this site's Neighborhood page, where you can see a map of Oahu and get detailed information on the different areas. Another suggestion is, if you are on-island, go to a local grocery store, restaurant, or drug store in the area and see how the area feels to you. Your agent will be able to tell you about the different amenities, shops, schools, and other information about the areas - the more you can tell your agent about your needs the more we can suggest specific areas to you.

Evaluate Properties & Narrow the Search
As well as visiting open houses, your agent can bring to your attention properties that fit your criteria, preview those properties for you, evaluate their market value and set up special appointments for you to view them. Usually, your agent can help you narrow your search to a few properties within a short period of time, helping you save time and money.

Make the Offer and manage the Escrow Process
Here's where having a buyer's agent to represent you becomes invaluable. Your agent will help you analyze the market and help you determine the best offer price and conditions for the offer. Once you have an accepted offer, your agent will manage the transaction through escrow, making sure all conditions and criteria of the contract are met and making sure your best interests are always protected.

Secure the Financing and Finalize the Loan
A buyer's agent will know all the deadlines and work with your lender to make sure all conditions are met in a timely manner. Final loan commitment by the lender is one of the conditions of the purchase contract, and the buyer's agent will make sure that the signing of your loan documents and other closing processes goes smoothly.

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