How to Buy a Home

After researching what information is typically available on the home buying process online, we found that a lot of advice is heavily specific and the basic steps are lost amid pages and pages of reading. With that in mind, our goal here is to give you the simplest, most streamlined breakdown on some important factors to consider if you want to buy a home. Read on!

1. What can I afford? About three times your annual household income is usually the general guideline.

2. How do I pay for a home? Unless you are very wealthy, you will need a bank loan for a mortgage which you will pay monthly, usually between 15-30 years. You will need to make a down payment of anywhere between 3-20% of the sale price. This means you will need a decent chunk of savings and good enough credit for mortgage loan approval.

3. What are the most important things I should find out about a home first? Offering price, so you know if you can afford it. Location, so you know if the area is right for you. Condition of the home, so you know how much money you will need to put into it for repairs and remodeling. 

4. Do I need a Realtor? Unless you feel perfectly comfortable handling all the forms, financing, inspections, marketing, pricing and negotiating based on local market conditions among numerous other details, you probably will want a Realtor and we certainly hope you'll choose us!

5. Should I get pre-approval on a loan? It's better to find out what a bank will loan you before you have your heart set on a specific home or homes. It will save time on the bidding process and you will know what your price range is before you start looking.

6. What will hurt my chances of getting a loan? Debt, inadequate savings, bad credit and inability to rent out rooms in the house you want to buy.

7. How do I make an offer? You should discuss this with your Realtor as there are many factors involved that are specific to you, the seller and market conditions.

8. Insurance? Recommended are title insurance, homeowners insurance and insurance that is specific to natural disasters that tend to happen in your area.

We hope you've found this information helpful as well as simple!

Consider browsing through the many availabilities at the Kaanapali Golf Estates or at the latest and greatest new development, Lanikeha in Kaanapali. Browse active MLS listings that meet your specified criteria with our Maui real estate search tool. When you are ready to contact us, you can call (800) 367-5632 or email us at info@whalersrealty.com. Mahalo for reading and we'll see you next week!