Off Island Lender…Or Not?
June 16th, 2008 categories: Honolulu Real Estate 101
A blog by Cynthia Hoskins, of Clark Realty on the Big Island, inspired me to write about off island lenders. Cynthia writes the following.
“ Local lenders understand the Hawaii Purchase Contract and its contingencies and have established relationships with underwriters who are familiar with the unique aspects of the Hawaii real estate market–there are many!”
CLICK HERE TO READ HER ENTIRE POST.
Over the last several years, I have seen a proliferation of lenders from the mainland that are trying to make loans in Hawaii. I am sure you have seen them on local T.V. If you Google “hawaii mortgage lender”, it seems many of the lenders that come up on the first page turn out to be from the mainland.
Here’s my two cents, if at all possible use a local lender! Hawaii is not the mainland and because there are many unique aspects to our real estate law an off island lender can have difficulties. The recent revisions to the Hawaii Purchase Contract, gives a seller the right to cancel the sale if the buyer fails to meet the dates set forth in the financing section (paragraph C-25). I know of at least one case where the dates weren’t met and the sale was canceled. The buyer wasn’t happy, but the seller was within their rights to cancel so the buyer was out of luck.
From what I can tell, a buyer from Hawaii considering an off island lender is trying to get the lowest interest rate and cost associated with getting the loan. At the end of the day, I don’t see buyers getting great deals by going off island. If anything they end up getting poor service and a nightmarish loan process. Once a buyer finds a property they like enough to make an offer and go through the stress of a purchase, it’s a shame to possibly loose it as a result of the lender. Think about it.
Today’s picture is of the University of Hawaii and it was taken from the Round Top lookout.
