Choosing the right Real Estate Agent is just as important as picking the right home. Practice makes perfect. Do not risk the success of your highest dollar purchase by chance. Get an experienced Realtor like Howard Dinits CRS, ABR, e-PRO, SFR, GRI, TRC, RSPS to help you. 808-874-0600
It is mind blowing how many people go about finding someone to help them with real estate. Why is it that many people just pick the first real estate agent they can find to assist them in probably one of their largest financial decisions of their lives? Check out a recent article on Realtor.com and some of my recent client testimonials.
If you went to your regular doctor and recent tests revealed a potentially life threatening situation with your heart valves. Would you rely on your physician or family/friend references, or would you just head down to the local hospital and find a doctor hanging out at the hospital information booth? Sounds kind of nuts, right? Well this stuff happens several times a day in residential real estate. Not just in Hawaii, across the United States too.
Of course you may stumble on an experienced real estate agent on “floor duty” or at an open house, but the odds are totally against you as experienced agents have a calendar and plan to succeed. Not just for themselves, but for their clients too. This means getting their buyers pre-qualified in advance so they know exactly what they can afford.
For those of you that weren’t aware that large brokerage offices offer up floor time so the office looks busy. How floor duty works is an agent signs up for a period of time, for example four hours. This agent is on duty for anyone who happens to look at the flyer in the window, walk in or perhaps a phone call off of a road sign.
Successful agents, ones that have invested in their education and marketing do not spend time doing floor duty. They are either furthering their education by taking a new Certified Residential Specialist “CRS “ class or out in their community or helping clients. These super agents are in high demand because they are known for their results and knowledge of the inventory. They have a get it done attitude and do not rest till their clients are happy. Today a professional Realtor must have a fabulous website with all of the mls listings, video content, and social media marketing. Today’s smart agents know how to use technology to market themselves and their services. Your Realtor of Choice Howard Dinits is on top of his game and is always improving his many websites by listening to his client’s suggestions and their needs and adding a Maui Condo guide and other requested content.
So whom are you going to find sitting at a Maui Real Estate office? Most likely you’re going to find a brand new agent, one down on their luck, or an agent that hasn’t built a referral business from their hundreds of happy clients. It is even possible that you will find a person trying to break into the real estate business and your $1,000,000.00 home purchase is their first transaction.
Now I am sincerely hoping that you’re not going to search for that physician hanging out in the Hospital cafeteria, information booth or waiting room. So I must ask you. Why would you pick your real estate guide for an important financial decision simply because they are the first one you stumbled on?
Or another mistake that could cost you thousands of dollars would be to pick a real estate agent at an open house, who has a fiduciary duty to that seller, to get the highest price and best terms for them. You’ll want to pick your own Accredited Buyer’s Representative that has fiduciary responsibility only to you. An ABR like Howard Dinits has special training so that he knows how to represent a buyer’s needs. Howard has helped over 100 families move to Hawaii and Maui.
Thank you for picking me as your Realtor of Choice,
Howard Dinits RS RE/MAX Resort Realty 808-874-0600 Toll Free 877-434-6487 fax 877-334-6487 http://www.EasyMauiRealEstate.com http://www.BigIslandRealEstate.com Each of us has a personal calling that's as unique as a fingerprint and that the best way to succeed is to discover what you Love and then offer it in the form of service. I Love what I do. Please let me know if you hear of someone Buying or Selling Real Estate in Hawaii.
From Realtor.com
http://www.realtor.com/home-finance/buyers-basics/how-to-choose-a-realtor.aspx How to evaluate an agent In Hawaii, Maui, Kihei, In making your decision to work with an agent, there are certain questions you should ask when evaluating a potential agent. The first question you should ask is whether the agent is a REALTOR® . You should then ask:
Does the agent have an active real estate license in good standing? To find this information, you can check with your state’s governing agency.
Does the agent belong to the Multiple Listing Service (MLS) and/or a reliable online home buyer’s search service? Multiple Listing Services are cooperative information networks of REALTORS® that provide descriptions of most of the houses for sale in a particular region.
Is real estate their full-time career?
What real estate designations does the agent hold?
Which party is he or she representing--you or the seller? This discussion is supposed to occur early on, at "first serious contact" with you. The agent should discuss your state's particular definitions of agency, so you'll know where you stand.
In exchange for your commitment, how will the agent help you accomplish your goals? Show you homes that meet your requirements and provide you with a list of the properties he or she is showing you?
These days, you hear plenty of stories about families that are losing their homes in Kahului, Wailuku, Kihei, Wailea and Lahaina. Most people don’t want to face up to the reality, until foreclosure sets in, and that can harm your credit, or worse give you a huge tax burden. Hawaii is a deficiency State so the lienholders could get a judgment against you and collect-garnish your future earnings. You can contact your bank and renegotiate the length of the mortgage or interest rate, which may lower your payment amount. If you are really having a problem with your payments and you have good credit you may want to do a short sale.
List your property for sale with a reputable real estate company and send a brief letter to all mortgage holders, giving them permission to speak with your Realtor. Otherwise, privacy laws will prevent them from talking to your agent.
What do I do, if there’s more than 1 lender?
If there are a first and second mortgage or a home equity line of credit, you may have to talk to more than one lender to get approval for a short sale. The presence of two lenders makes a short sale more complicated since it’s often the lender holding the second mortgage that has to absorb most of the loss.
Who should I contact at the bank?
Be sure you call the bank’s loss mitigation or short sale departments, which will be the group to decide whether, or not to accept a short sale. Finding the decision maker is often one of the biggest hurdles in doing a short sale.
What information will the bank need to decide whether to accept a short sale?
The short sale submission package should include W-2 forms from employers (or a letter explaining that you are unemployed), bank statements, two years of tax returns, and other documents outlining income and debt obligations. In addition, as a short seller you should submit a “hardship letter,” explaining the circumstances that make it impossible for you to pay the full amount of the loan
What financial or credit liabilities will I have as a result of a short sale?
Many lenders ask you to sign a promissory note for all or part of the difference between the proceeds of the short sale and the debt obligation as a condition to a short sale. In such cases, the note gives lenders the right to sue a seller and attach other assets if the note is not paid when due. Having a portion of a loan forgiven may adversely affect a seller’s credit.
What tax liabilities will a seller have as a result of a short sale?
One often over looked aspect of short sales is that a seller must count any amount forgiven by the lender as income and pay taxes on that income, even if no actual money was received. The IRS requires lenders to submit a Form 1099 stating the forgiven amount. Sellers who meet the Internal Revenue Service definition of insolvency will not have to pay taxes on the forgiven amount.
Home ownership is your right and please remember that you have friends in the real estate industry that may be able to assist you in these tough times.
For more information contact:
Certified Residential Specialist
Howard Dinits (R)S
RE/MAX Resort Realty
877-434-6487 or via e-mail Howard@HowardDinits.com
This is a good read even if you are not a foreign investor, as some of these items apply to a buyer that resides on the mainland or just someone new to Real Estate.
This is just a guide for some of the items you will need to know.
I suggest you contact me, Howard Dinits directly with any questions you may have about a specific purchase or property as I am a Certified International Property Specialist and am here to assist you. 808-874-0600 toll free 877-434-6487 RE/MAX Resort Realty Howard@HowardDinits.com
I am often asked, “What do Canadian Buyers Need to Know Before Buying Real Estate in Hawaii?”
This guide may help Canadians, or les Canadiens, or les Canadiennes, and friends in Canada with purchasing Real Estate in Maui, Hawaii.
What are the Terms and Definitions that may be different in Hawaii?
FREEHOLD = FEE SIMPLE which means you have the right to use the land for an indefinite period of time and, subject to any bylaws or restrictive covenants, may do what you wish with that land. You own the air space above your land and the land itself.
LEASEHOLD INTEREST = Leasehold means that owning a leasehold on a piece of land gives you the right to use the land for a certain period of time. The owner of the leasehold may sell the land, but the new land owner will be subject to the terms and conditions of the original lease.
Strata fees = AOAO fees
Garburator = Garbage Disposal
States - The USA - Mainland
Washroom - bathroom
Hydro = Electricity
Subjects = contingencies: In Canada you normally remove the subjects within 7 days. Our contingency and inspection periods can be much longer. A standard contract provides 15 days for a home inspection and 15 days to review the seller’s disclosure statement.
Existing As is clause = In Canada when a home is sold the seller must bring their home up to code. In Maui, the seller is required to disclose anything that might affect the property’s material value. This is why your real estate agent Howard suggests we hire a licensed home inspector to identify any items that are in disrepair or that do not meet current building codes.
FIXTURES vs CHATTELS: If an item is built in or attached to the property in a permanent way, then it is considered a fixture and will be transferred with the property unless it’s otherwise stated in the purchase and sale agreement. A chattel, on the other hand, is something that is movable like a fridge or a washer and dryer. These are assumed to not be included unless otherwise stated in the purchase contract.
In Canada I hear you use attorneys for the whole transaction. We only use attorney’s to draft the Deed.
We use Title and Escrow companies
In the state of Hawaii we use title companies and escrow officers to handle the transfer of funds, property and the recording of the deed. This is different from the process that you are used to in Canada. The escrow officer, in addition to your Buyer’s Agent Howard Dinits RS ABR will go over with you the time line, title issues, and the necessary required paperwork. When it comes to scheduling your inspections Howard will assist you in locating the right person to do the job.
How long does it take to purchase a home or condo in Hawaii? Purchasing Real Estate in Maui can take 45 to 60 days and sometimes longer to complete.
What are the costs?
There are certain closing costs and taxes that are customary in the US that you may not be used to and are in addition to the actual purchase price. These item may include:
Escrow fees, Title insurance, Attorney fees, Loan Origination fees, Pest Inspections, Home Inspections, Appraisal Fees, Home Owner Association Transfer fees, maintenance fees, property taxes and others.
As Your Realtor of Choice, Howard Dinits will give you a breakdown and an itemized estimate of all the fees that are associated with your purchase.
What does it take to get a loan in Hawaii?
Take note: Lenders must be licensed in Hawaii. This means you can't use a Canadian or a Mainland US lender to finance a Hawaii property.
Mortgage Rules can be different in the States as you are able to finance for 30 years.
Because your interest rates are much cheaper in Canada, Howard suggests that you get a loan such as a second mortgage on your home, in Canada and use the money from that loan to make a cash purchase in Hawaii.
Having already established good credit in the US may help, but I also have discovered that Canada has a credit scoring system that is accepted here in the US by most of our lenders.
Foreign investors like Canadians typically need at least 30% down to get a loan in the US. If you are thinking of owning a condo-tel or vacation rental you may need a minimum of 35% down
Canadians also typically pay ½ to 1% higher loan rate than buyers from the United States.
How do I go about Signing Closing Documents?
Some documents will have to be notarized by a US notary. The instructions will likely direct you to do the signing at the US Embassy. That will likely require scheduling an appointment, taking a ferry and can be time consuming. I often suggest to my clients that it may be easier to come across the boarder to a notary in the US.
How do I establish service with the utility companies?
If the utilities are to be in the name of the new foreign owner Maui Electric will require notarized ID's in order to open an account. This can be done in person at the local MECO office. The Maui Water Company may require a one time deposit to establish service.
What are the Tax Liabilities?
Non-US citizens are subject to FIRPTA. Foreign Investment in Real Property Tax Act of 1980. The act requires that 10% of the sales price to make sure that US taxes on the gain are paid. You may file a tax return to get the overpayment back. If you did not realize a profit there is a form we can file to exempt you from this tax. A 1031 Exchange will also exempt you from this tax.
HARPTA is Hawaii state’s version of FIRPTA. In the case of HARPTA, 5% of the sales price is owed. This HARPTA is collected from all sellers that do not reside in Hawaii. If you did not realize a profit there is a form we can file to exempt you from this tax. A 1031 Exchange will also exempt you from this tax.
All foreign investors will need a TIN number in the United States if they are renting out their property. If you do not plan on renting it out a TIN may not be needed immediately, however it will be required when you sell the property. Your buyer’s agent Howard Dinits recommends Canadians get the TIN at the time of purchase and it can be handled through escrow.
Each of us has a personal calling that's as unique as a fingerprint and that the best way to succeed is to discover what you Love to do and then offer it up in the form of service. I Love what I do. Please let me know if you hear of someone Buying or Selling Real Estate in Hawaii.
How do you foreclose on a reverse mortgage 206.125 ?
Title 24: Housing and Urban Development
Subtitle B: Regulations Relating to Housing and Urban Development (Continued)
CHAPTER II: OFFICE OF ASSISTANT SECRETARY FOR HOUSING-FEDERAL HOUSING COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
SUBCHAPTER B: MORTGAGE AND LOAN INSURANCE PROGRAMS UNDER NATIONAL HOUSING ACT AND OTHER AUTHORITIES
PART 206: HOME EQUITY CONVERSION MORTGAGE INSURANCE
Subpart C: Contract Rights and Obligations
: Claim Procedure
206.125 - Acquisition and sale of the property.
(a) Initial action by the mortgagee. (1) The mortgagee shall notify the Secretary whenever the mortgage is due and payable under the conditions stated in ? 206.27(c)(1), or one of the conditions stated in ? 206.27(c)(2) has occurred.
(2) After notifying the Secretary, and receiving approval of the Secretary when needed, the mortgagee shall notify the mortgagor that the mortgage is due and payable, unless the mortgage is due and payable by reason of the mortgagor's death. The mortgagee shall require the mortgagor to (i) pay the mortgage balance, including any accrued interest and MIP, in full; (ii) sell the property for at least 95% of the appraised value as determined under ? 206.125(b), with the net proceeds of the sale to be applied towards the mortgage balance; or (iii) provide the mortgagee with a deed in lieu of foreclosure. The mortgagor shall have 30 days in which to comply with the preceding sentence, or correct the matter which resulted in the mortgage coming due and payable, before a foreclosure proceeding is begun.
(3) Even after a foreclosure proceeding is begun, the mortgagee shall permit the mortgagor to correct the condition which resulted in the mortgage coming due and payable and to reinstate the mortgage, and the mortgage insurance shall continue in effect. The mortgagee may require the mortgagor to pay any costs that the mortgagee incurred to reinstate the mortgagor, including forclosure costs and reasonable attorney's fees. Such costs shall be paid by adding them to the mortgage balance. The mortgagee may refuse reinstatement by the mortgagor if:
(i) The mortgagee has accepted reinstatement of the mortgage within the past two years immediately preceeding the current notification to the mortgagor that the mortgage is due and payable;
(ii) Reinstatement will preclude foreclosure if the mortgage becomes due and payable at a later date; or
(iii) Reinstatement will adversely affect the priority of the mortgage lien.
(b) Appraisal. The mortgagee shall obtain an appraisal of the property no later than 30 days after the mortgagor is notified that the mortgage is due and payable, or no later than 30 days after the mortgagee becomes aware of the mortgagor's death, or upon the mortgagor's request in connection with a pending sale. The property shall be appraised no later than 15 days before a foreclosure sale. The appraisal shall be at the mortgagor's expense unless the mortgage is due and payable. If the mortgage is due and payable, the appraisal shall be at the mortgagee's expense but the mortgagee shall have a right to be reimbursed out of the proceeds of any sale by the mortgagor.
(c) Sale by mortgagor. Whether or not the mortgage is due and payable, the mortgagor may sell the property for at least the lesser of the mortgage balance or the appraised value (determined under ? 206.125(b)). If the mortgage is due and payable at the time the contract for sale is executed, the mortgagor may sell the property for at least the lesser of the mortgage balance or five percent under the appraised value. The mortgagee shall satisfy the mortgage of record (and the Secretary will satisfy the second mortgage required under ? 206.27(e) of record) in order to facilitate the sale, provided that there are no junior liens (except the mortgage to secure payments by the Secretary under ? 206.27(e)) and all the net proceeds from the sale are paid to the mortgagee.
(d) Initiation of foreclosure. (1) The mortgagee shall commence foreclosure of the mortgage within six months of giving notice to the mortgagor that the mortgage is due and payable, or six months from the date of the mortgagor's death if applicable, or within such additional time as may be approved by the Secretary.
(2) If the laws of the State in which the mortgaged property is located or if Federal bankruptcy law does not permit the commencement of the foreclosure within six months from the date of the notice to the mortgagor that the mortgage is due and payable, the mortgagee shall commence foreclosure within six months after the expiration of the time during which such foreclosure is prohibited by such laws.
(3) The mortgagee must give written notice to the Secretary within 30 days after the initiation of foreclosure proceedings, and must exercise reasonable diligence in prosecuting the foreclosure proceedings to completion and in acquiring title to and possession of the property. A time frame that is determined by the Secretary to constitute ?reasonable diligence? for each State is made available to mortgagees.
(4) The mortgagee shall bid at the foreclosure sale an amount equal to the appraised value of the property.
(e) Other bidders at foreclosure sale. If a party other than the mortgagee is the successful bidder at the foreclosure sale, the net proceeds of sale shall be applied to the mortgage balance.
(f) Deed in lieu of foreclosure. (1) In order to avoid delays and additional expense as a result of instituting and completing a foreclosure action, the mortgagee shall accept a deed in lieu of foreclosure from the mortgagor if the mortgagee is able to obtain good and marketable title from the mortgagor.
(2) In exchange for the executed and delivered deed, the mortgagee shall cancel the credit instrument and deliver it to the mortgagor and satisfy the mortgage of record.
(g) Sale of the acquired property. (1) Upon acquisition of the property by foreclosure or deed in lieu of foreclosure, the mortgagee shall take possession of, preserve and repair the property and shall make diligent efforts to sell the property within six months from the date the mortgagee acquired the property. Repairs shall not exceed those required by local law and, in cases where the sale is made with a mortgage insured by the Secretary or guaranteed by the Secretary of Veterans Affairs, those necessary to meet the objectives of the property standards required for mortgages insured by the Secretary. No other repairs shall be made without the specific advance approval of the Secretary. The mortgagee shall sell the property for an amount not less than the appraised value (as provided under paragraph (b) of this section) unless written permission is obtained from the Secretary authorizing a sale at a lower price.
(2) Repairs shall not exceed those required by local law or the requirements of the Secretary of HUD or the Secretary of Veterans Affairs if the sale of the property is financed with a mortgage insured by the Secretary of HUD or guaranteed, insured or taken by the Secretary of Veterans Affairs.
(3) The mortgagee shall not enter into a contract for the preservation, repair or sale of the property with any officer, employee, owner of ten percent or more interest in the mortgagee or with any other person or organization having an identity of interest with the mortgagee or with any relative of such officer, employee, owner or person.
Each of us has a personal calling that's as unique as a fingerprint and that the best way to succeed is to discover what you Love to do and then offer it up in the form of service. I Love what I do. Please let me know if you hear of someone Buying or Selling Real Estate in Hawaii.
Snorkelling, swimming, surfing and suntanning aren't the only reasons Canadians visit Hawaii these days.
They're saying aloha to condos and homes that have plummeted in price as much as 60 per cent since January 2008, while the Canuck buck soars. Why buy a cottage on a lake in Canada when you can be on a beach with gardenia-scented breezes?
``What's really driving the market is foreclosures,'' says Re/Max Resort Realty's Howard Dinits, who lives on Maui.
``Many island properties here were bought as second homes by speculators in the States. In the economic downturn, people used revenue from these holiday rentals to make payments on their main homes - then they defaulted on the island properties.
``In some areas prices have dropped 40 to 60 per cent and it's as bad as Phoenix.''
He gets calls and emails from Canadians daily.
``Some are waiting for a bell to ring that says we have hit absolute bottom, '' he jokes. ``Others have pulled the trigger because in Maui we're having a half-off sale.''
The best values are on the big island, Dinits says.
``In Maui you need two wallets - on Hawaii you can survive on one,'' he says. ``You can get a nice house on Hawaii today, six blocks from the ocean, for $66, 000. That would be a bank-owned foreclosure, or reo (Real Estate Owned) deal.''
The Hawaiian capital, Honolulu, is on Oahu, where property values declined only 7.1 per cent in the last year thanks to a more stable population and U.S. military base.
While cheaper homes sell fastest, on Maui more than 250 homes sold for over $1.8 million last year. A typical condo now sells for about $250,000, while a typical house is $480,000.
Dinits sold Ottawa businessman David Renfroe, 38, a two-bed, two-bath condo in the Maui town of Lahaina last year for his growing family. ``We went over looking for a bank foreclosure,'' Renfroe says. ``With our strong dollar it seemed like a no-brainer.''
After doing his due diligence, he made a lowball offer and was shocked when he got it. ``We paid $245,000 for a condo previously priced at $550,000. We were thrilled.''
He has reserved several months for family and friends and rents it the rest of the time. ``It's been 78 per cent rented, so the cost to us is zero.
``Everybody here is looking at Florida, but there's hurricanes and 20 per cent unemployment there. I think the Hawaii market will come back quicker.''
Dinits recently sold two oceanfront condos to a Lillooet, B.C. couple: a one- bedroom for $250,000 and a two-bedroom for $300,000. Both are available for vacation rental, which is important, as strata fees (maintenance fees) can be $800 a month.
Another young Canadian family recently bought a vacation home in Lahaina for $245,000. ``It's managed by a company that rents it, cleans it and had it 90 to 100 per cent rented all winter at $195 a night.'' The unit was worth $500,000 in 2005.
The best deal he saw recently was a $123,900 condo previously valued at $289, 000. Located at the north end of Kihei, a block from the beach, it had a recent $40,000 renovation and featured two bedrooms, two baths and two parking stalls. ``There's no pool, but it's a block from the `big' pool. And strata fees are under $400 because of that,'' says Dinits, who closed 67 deals last year.
The most affordable living is in Hilo or Puna, on the lush (rainy) side of Hawaii. Here a three-bedroom, two-bath, 1,200-square-foot home, built five years ago goes for $125,000 to $175,000. Not all neighbourhoods allow vacation rentals, however.
``Raw land sold for $75,000 an acre in Puna in 2008. Today I just sold some for $19,000.''
There are deals at the top end, too. A Lahaina house recently listed for $1. 25 million. Completely remodelled, it has a pool, ocean views, four bedrooms and 2,600 square feet; it was $1.88 million three years ago.
Hawaii has a 10 per cent federal and five per cent state withholding tax to force people to pay the 15 per cent tax on capital gains. It does not apply if a person sells for a loss, or reinvests in more U.S. property.
Dinits doesn't see prices strengthening any time soon - ``I don't think we'll see irrational appreciation in the next five years, although Americans do have amnesia.''
Oahu real estate agent Kalama Kim is with Coldwell Banker and specializes in Waikiki, where the median price for a condo is $296,000.
``Canadians now make up 15 per cent of the traffic at open houses and there's lots of inventory,'' says Kim, noting there are 487 condos for sale in the Waikiki area.
Jay MacMillan, of the MacMillan Team in Edmonton, is doing brisk business in Maui these days. He has made three sales this year, in addition to his father, who bought a condo six months ago, and his brother, who bought two. ``All of them are cash flowing.''
Strata fees are steep because pools, barbecue areas and lush landscaping are expensive to maintain, ``but there is money to be made. Prices have dropped while the rental market is still extremely good - and it is so easy to hop on WestJet and get there. Instead of buying recreational properties on lakes here or in B.C., people are getting places in Maui for the same price.''
He advises buyers to talk to an accountant before buying. ``It's a different country, with different laws and taxes.''
glitwin@timescolonist.com By Grania Litwin
I'd like to personally thank Grania Litwin for taking the time to learn about our culture and how real estate is done in Hawaii. She is a great asset to the Victoria Times Colonist
Each of us has a personal calling that's as unique as a fingerprint and that the best way to succeed is to discover what you Love to do and then offer it up in the form of service. I Love what I do. Please let me know if you hear of someone Buying or Selling Real Estate in Hawaii.
Spreading the Word About VA Loans this Memorial Day Weekend
Memorial Day is a time to honor the men and women who have so willingly served our country and fought for everything we stand for. Memorial Day started as a day to recognize those who had fallen during the Civil War and later expanded to all service members. Just as Memorial Day was expanded to all service members, the VA home loan program is designed for veterans and active duty service members alike.
What is the VA Home Loan Program?
The VA Home Loan Program is a unique lending opportunity, which directly caters to the needs of military members. Established in 1944, the VA Loan Program has helped nearly 19 million veterans and active duty members achieve homeownership by insuring a part of each loan given. You will find that the VA limits differ in each count of Hawaii. Your Maui Real Estate Agent Howard DInits will inform you of this amount. You can use your VA ito buy a house in Kihei, Wailea, Kahului, Lahaina. Your Va Loan will help you with homes for sale in Pukalani, Paia, Makawao and Haiku.
Why Choose a VA Home Loan?
For veterans and active duty service members, the VA Home Loan is able to provide them with more money-saving benefits than a conventional lending program could. With a VA Home Loan, military members are able to not only purchase a home with no need for a down payment, but they are also able to benefit from:
Competitive interest rates
Flexible mortgage terms
No mortgage insurance required
What is the VA Home Loan Process?
The steps to obtaining a VA Home Loan are relatively easy and painless. After calling a VA Loan Specialist like VA Mortgage Center.com, an interested veteran or active duty service member can achieve homeownership in as little a five steps. The typical steps for securing a VA Home Loan include:
Submitting Certificate of Eligibility
Finding a Home
Submitting the VA Home Loan Application
Waiting for Processing and Approval
Closing the Loan
Who is Eligible?
To make homeownership readily available to all veterans and active duty service members, the VA Home Loan Program has very few eligibility requirements. To become initially available for a VA Home Loan, a military member must simply have:
Served for at least 3 months on active duty during war time or served for 181 days on active during peacetime
Served 6 years in the Reserves or National Guard
There are no credit or income requirements associated with the VA Home Loan program; however, most VA-approved lenders will require a credit score of at least 620 to secure financing. Regardless of this lender credit requirement, all military members interested in securing a VA Home Loan are encouraged to apply as even those with imperfect credit histories have been approved in the past.
Each of us has a personal calling that's as unique as a fingerprint and that the best way to succeed is to discover what you Love to do and then offer it up in the form of service. I Love what I do. Please let me know if you hear of someone Buying or Selling Real Estate in Hawaii.
When thinking about finding a place to live, one of the most important questions to answer is, "Should I rent a house or buy a home?" The answer could be different at different times in your life, but on average, buying a house is better than renting. There are plenty of reasons that buying is better and will benefit you in the long run.
The largest benefit to buying a home is the equity you will place into the purchase. When you buy a house, the payments you make towards the mortgage are going towards your ownership of the house. The more you pay into the home, the more equity you have. When the house is paid off, you will have all of that equity in your name so if you ever need access to the money, you will have that asset. If you are renting a house, your rent does not go towards equity. Rent is simply money you will never see again.
Owning a home also locks in your monthly payment. Once you make a deal with a lender, you know what your mortgage payment will be every month, no matter what the market is doing or how high interest rates rise. When you rent, you have no guarantee that your payments will be the same once your lease is renewed. If your current lease is good for a year, the owner could raise your rent price after that year.
Buying a home also helps you build your financial portfolio. Homes generally increase in value over time, especially if you take good care of the property and make minor improvements. If you sell your home a few years down the road, you should be able to make a profit. When you rent, you leave the property with no money returned and no extra cash.
If you enjoy making your living space match your personality, buying is also a better idea. When you buy a home, you can change it however you please. You can paint, put in new, more efficient units, remodel, or whatever you please. If you rent a house, you will have to get clearance for anything you do and the landlord may not allow you to make any changes at all.
There are many reasons that buying a home over renting is beneficial to you. Once you find the perfect home for your family, you can check into the various <a href="http://www.movebuilder.com">moving companies</a> in your area and compare the prices and services. Then, when you are ready to move, you can have peace of mind that you will have the help you need to make the change you want.
Each of us has a personal calling that's as unique as a fingerprint and that the best way to succeed is to discover what you Love to do and then offer it up in the form of service. I Love what I do. Please let me know if you hear of someone Buying or Selling Real Estate in Hawaii.
Maui Hawaii real estate - is our passion so our website is http://www.EasyMauiRealEstate.com features real estate services and mls listings in South Maui, Wailea, Makena, and Kihei.
Or for someone to tell you the market has hit bottom?
The financial news has choke stories warning people about the inability to predict the bottom of the stock market. A 40% decrease in stock prices in one year have uncovered some great values available for investors and buying them at their absolute lowest price will not make much difference for the people who hold them for a while.
Well . . . Have you ever considered the Cost of Waiting? Hawaii home prices are very much the same. There has been a correction in the market and prices are down in most parts of the state. Combine these with the best rates we have ever seen and everyone will later look back and Talk Story and say, "This was the best time to buy."
I'd like to save you from potentially making a $180,000.00 mistake. Want to know more? Keep reading. Let's make an assumption that the house prices may still decline 5% more before they start appreciating again. If while a buyer was waiting for the price on a $500,000 to go down 5% to $475,000 and the interest rate goes up one percent from 5.25% to 6.25%, which is entirely possible, the buyer's monthly payments will increase almost $500 per month. With this scenario, simply by waiting for the price to come down you’ll pay an extra $180,000.00 over the life of the loan. That is 500 dollars multiplied by 360 payments equals $180,000.00
Ouch! = You don't want to make this mistake? Call Howard Dinits RS RE/MAX Resort Realty 808-874-0600 or 877-434-6487
For most buyers, a fixed monthly payment for their home is much more important than the price paid or even the equity in the home. If you act now and rates go up later, you will get more house for the same payment.
Follow Buffett's lead.
We could learn from long time investors like Warren Buffett who is pushing 84, but he hasn't been worried or trying to make a quick buck, no matter what the market has done. Rather, he's been investing for the long term. In the past few years, that's meant waiting for opportunities to present themselves. Now that they are, he's striking with a vengeance and so should you.
Because of his patience, Buffett hasn't had to compromise and he's getting great companies at great prices. When Constellation Energy's price dropped so suddenly in mid-September (from above $60 to the $20s), he was ready to pounce. Goldman and GE may have approached him, but you can be darn sure that he'd already done the bulk of his research beforehand.
To be great Real Estate investors, we need to be similarly prepared. In volatile times like these, the Hawaii Real Estate market presents us with loads of great values especially with Short Sales and reo’s . Just because house values have fallen since the peak, doesn't mean they were not great long term investments.
Let me ask you? Do you know anyone that will sell you their home, for the same price they paid for it 10 years ago?
My advise to those concerned about their future is to take advantage of the best interest rates that we have seen in history. Invest for the long term and build yourself a nest egg for your retirement.
For more information on Real Estate Investments please contact Certified Residential Specialist
24 CFR 206.125
