Before potential home buyers begin house hunting, they need to sit down with a lender to discuss key issues. In fact, Realtors will insist that before beginning the journey of house hunting,

you talk to a lender to be prequalified. The pre-qualification results will save you and your Realtor valuable time. Also, it could turn out that you can qualify to purchase a higher priced home than expected.

During the pre-qualification, a home buyer learns about current interest rates, estimated closing costs, and that there are a variety of loan programs to evaluate before choosing the

best options. Honolulu HomeLoans can guide the home buyer through the entire journey toward the goal of home ownership. The first step in getting prequalified is to sit down with a loan officer to review credit

reports and credit scores. The lender and home buyer need to review the credit report carefully to make sure it is accurate. Any credit problems should be addressed promptly because they could delay a purchase

transaction. Once the credit report is verified, the lender and home buyer can assess the factors that will determine the maximum amount of the prospective loan. The lender will need to know the home

buyer’s gross monthly income and then will be able to determine how much debt they can manage by calculating their “debt ratio,” or the percentage of gross monthly income that goes towards

paying existing debts and the proposed mortgage payment. The lender will require a debt ratio of 45% or less. Next, the lender will examine the amount of cash the borrower will need to cover a down

payment and closing costs. Whether it is their own cash or a gift from a relative, the down payment combined with their monthly income will determine the loan options available to the home buyer.

When you meet with a lender for a mortgage pre-qualification, you should provide the following: (1) most recent 30 days of pay stubs, (2) most recent W-2 forms, and (3) most recent bank statements. If you are self-employed,

the lender will need to review your most recent two years of personal and business tax returns in order to calculate your adjusted net income. Having these documents at your meeting with the lender

will expedite an accurate evaluation. The key to a smooth home buying experience is to do the homework upfront, and the lenders at Honolulu HomeLoans are available to assist you with the first big step, pre-qualification.

As consumers embark on the journey of homeownership, the two most important decisions in the process are choosing the right Buyers Agent and the perfect Mortgage Professional.  It is imperative that the role of your Buyers Agent be filled by a Realtor®, not just a Real Estate Licensee, and your Lender of choice is someone committed to the local marketplace.  With over $500 million in funded loans since we opened our doors in 2010, Honolulu HomeLoans has positioned itself as Hawaii’s Largest and Most Experienced Privately Held Mortgage Banker.  Our elite team of Mortgage Professionals has over 750 years of combined experience, the vast majority of which has been spent serving the people of Hawaii.  It is this commitment to Local Service that sets us apart.

Our Mission to create a Mortgage Banking Company that has the power of a national entity, but the flexibility of a small Local Business is being realized every day.   This ensures that our client’s interests are always managed by the people who know them best.  As Hawaii’s Largest Privately Held Mortgage Banker, our focus is solely on the local community.  All of our licensed Mortgage Professionals are supported by a team of In-House Processors and Underwriters who are committed to providing elite level service and loan fulfillment to the people in your neighborhood.  Our loans are never sent out of state for review and over 70% of all loans that we fund are serviced here in the islands.  This means no more calls to mainland or even oversees to check on the status of your loan or make a payment. 

Our Loan Originators are empowered to Pre Approve every client at the point of sale, where they are most comfortable; in their homes, at their offices, over the phone or via the internet.  And unlike many of our competitors, every member of the HHL Sales Team has passed both the State and National Mortgage Licensing Exams. They are required to maintain a suitable level of continuing education and pass criminal and financial background checks that reinforce your ability to rely on them to serve your needs honorably.

In just over 16 months, HHL has partnered with hundreds of Realtors® to assist thousands of borrowers realize their dream of Home Ownership.  Contact one of our Mortgage Professionals today to experience the difference that Hawaii’s Largest Most Experienced Mortgage Bankers can make in your home buying experience.

I was asked recently, “If you were not a loan officer, what qualities would you look for in one…whom would you trust with the biggest loan of your life?” The phrase KISS as in “Keep it Simple, Stupid” came to mind. Not because the process is simple…but because the answer is simple, if you just stop and think about it. You would want: “Knowledge, Integrity, Structure, and Skill.”

KNOWLEDGE. You often hear, “I specialize in FHA, VA, MCC, USDA, Jumbo, etc.” I would not want just a “specialist”…I would want a “generalist.” He or she should know all about every type of financing. No one program is good for everyone. For example, a veteran with a large enough down payment, who cannot get his funding fee waived, should not use VA financing. The loan officer should know the underwriting guidelines for each program or have quick access to these guidelines.

INTEGRITY. Loan officers all talk about integrity, but can they discourage a client from getting a loan if it is not in the client’s best interest? For example, the client could lower their mortgage payment by re-financing, but can they recover the loan closing costs, or have they just extended their loan term which would mean that they are not ultimately saving money. A good loan officer knows that if they look after their clients’ needs, they get referrals and their clients will use their services again in the future. Look for the length of time the loan officer has been in the business and, most importantly, how long their managers have been in the business. These managers provide the answers for the questions and problems that inevitably arise. Ask if you can call some past clients to check on what they experienced. Longevity alone does not guarantee integrity, but the ability to get referrals does.

STRUCTURE. I would want a loan officer with the ability to structure my loan to suit my needs. Should I put less down and pay off my debts? Which debts should I pay off? Is financing with a first and second mortgage better than having one loan with private mortgage insurance? Should I borrow against other properties to increase my down payment? Should I refinance my own home to pay off an investment property’s loan? Ask for financing options.

SKILL. Is my loan officer able to communicate, not only with me and my real estate agent but with my seller’s real estate agent as well. Is he or she able to convince a loan underwriter, by asking for and providing the right documentation, that my loan should be approved? Does he or she understand the myriad of changes imposed recently on the lending industry and know how the impact on me can be minimized?

Invest some time and effort in selecting your next loan officer. Then let his or her attributes of Knowledge, Integrity, Structure, and Skill provide you with a less stressful and more smooth lending experience.

Generally speaking, mortgage insurance is required whenever a buyer is putting less than 20% down. This can present some challenges for condominium buyers. That’s because until now, in order to get Private Mortgage Insurance (PMI), the condominium had to meet a minimum level of owner-occupancy of 70%. Such a high rate of owner-occupancy can be rather hard to find when it comes to Hawaii condos.

As a result, on low down payment condo loans, quite often we’ve had to go with an FHA loan. FHA has the advantage of requiring only a 50% owner-occupancy rate. However, FHA condo loans can be problematic since the condominium project quite often has to go through a lengthy approval process. Also, the monthly mortgage insurance premiums on FHA loans have been steadily increasing to the point that they are becoming prohibitive.

For example, effective April 18, the FHA mortgage insurance rate increased yet again to an annual factor of 1.15% on most loans (that’s $288 on a $300,000 loan.) This is nearly double the cost of PMI on a conventional loan.

THE GOOD NEWS is that Honolulu HomeLoans has been granted the ability to provide PMI on conventional loans for condos having as low as 51% owner-occupancy. This is basically the same as FHA but there’s no lengthy condo approval process and the premiums are much cheaper.

TO SUMMARIZE, if your borrower has less than 20% down and is shopping for an eligible* condo, check with us about doing a conventional loan with PMI.

*Normal restrictions apply, eg, no condo-hotels, timeshare, excessive commercial space, AOAO delinquencies above 15%, etc.

Honolulu HomeLoans will be ready to close your purchase loan within 30 days of application -GUARANTEED, or we will credit you with $500 at closing.  In addition, HonHL will offer you a 0.250 point off your loan discount fee; on a $500,000 loan, for example, that works out to $1,250.  You will also receive a complimentary Home Warranty Plan from American Home Shield.  What is a home warranty?  Your home is your most likely your biggest investment.  A home warranty is a service contract that covers the repair or replacement of many of the most frequently occurring breakdowns of home systems and appliances.  Unexpected repairs or replacements of covered items can strain your budget.  In addition, AHS provides timely and reliable service from pre-screened contractors. 

Contact one of our experienced loan officers today to find out more about getting an “advantage” in your home buying transaction.  They will be happy to assist you with a free pre-approval and will let you know if your purchase qualifies for this promotional offer.