Buying a home in Hawaii is a dream come true for many people, but bringing that dream to fruition can be stressful and more costly than necessary if you fall into one of several common pitfalls encountered by those who are looking to purchase a property in The Aloha State. To that end, here is a look at the most common pitfalls and how you can avoid them.
Pitfall #1: Failing to Get Finances in Order
To help ensure a smooth buying process, it is a good idea to get yourself pre-approved for a mortgage loan before you even start looking for a home in Hawaii. Not only does this help to demonstrate that you are a serious buyer, which will put you ahead of other buyers when the homeowner is considering offers, but it will also help to expedite the actual loan process once your bid is approved. Of course, it will also give you a solid idea of how much you can spend toward the purchase of a home.
Along these same lines, it is in your best interest to explore all of the loan options that are available to you before you settle on one. Consult with several lenders to learn more about all of your options, including loan terms and interest rates. You may also be eligible for a loan program, such as an USDA loan, which may make the buying process less expensive for you.
Pitfall #2: Failing to Do Your Research
A number of different factors need to be taken into consideration when purchasing a property, including location, the type of property that suits your lifestyle and area amenities. Therefore, it is important to fully research the various areas that are available to you while also being sure to consider the current market value of the properties you are considering. By researching comparable sales in the area, you will be able to determine a fair price to offer in the bid for the home you wish to purchase.
Pitfall #3: Bypassing the Inspection
Paying for a professional inspection of the home before making a purchase is an essential step toward safeguarding yourself and your investment. While home inspections do typically range in cost from around $350 to more than $600, it is a worthwhile investment because it will help you identify any potential problems with the property before you make a purchase. If you still wish to move forward with the purchase following the inspection, information gained by the inspection may be useful in helping you to negotiate a lower price. This includes getting a termite inspection, even if you are purchasing the home with cash and, therefore, are not required to obtain such an inspection by a mortgage lender.
Pitfall #4: Failing to Review Documents
Purchasing a home involves obtaining a reviewing a number of documents, including building permits and condominium documents if you choose to purchase this type of property. Be sure to review these documents carefully to ensure they are in proper order and that you thoroughly understand how they might affect you.
