Archive for the 'Mortgages & Financing' Category
Building An Unusual Home? Don’t Count On The Banks!
July 1st, 2010 categories: Mortgages & Financing, Rants & Riffs
Before you plan to build your Honolulu home constructed of recycled CD’s impregnated with cattle dung, make sure you have a long term lender committed to making you a normal fixed rate mortgage. A recent Wall Street Journal online article discusses the barrowing problems facing homes that are unusual or built in a non-traditional manner.
“A niche mortgage mess is brewing in homes made of earth, tires, concrete and trash. Environmentally minded people built them, hoping to conserve energy and to re-use what might otherwise wind up in a landfill.
Such sentiments in some cases have been no match for the new resolve of the banking industry in the wake of the housing bust. Banks have become much pickier about examining sales of comparable homes, in deciding whether and how much to lend. Owners of odd homes can be out of luck.”
CLICK HERE TO READ THE ENTIRE ARTICLE
Given the current lending environment, you may be better off building your dream home in a conventional manner.
If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.
More Video Blogs
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Sellers Beware Of Company Addenda
Sellers Get Your Surveys In Advance
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Short Sale Letters
April 15th, 2010 categories: For Sellers, Mortgages & Financing
Over the last few years I have seen an increase in the number of people having difficulties making their monthly mortgage payment on their Honolulu condo or house. Though it is not a good situation once it becomes clear that something needs to be done most people begin by investigating refinancing and/or mortgage modification. If satisfaction cannot be found through these two avenues, then the more drastic steps of a short sale, deed-in-lieu of foreclosure or an actual foreclosure become the remaining options. Part of the short sale process is to write a letter explaining your situation and whey the lender should consider granting the short sale. Rather than reinventing the wheel, I found an excellent series of letters at Blog The Rockies, a Boulder Colorado real estate blog.
“To Whom It May Concern:
This letter is a explanation of our financial hardship for short sale documentation. At the time I bought a home, my wife and I were full time employees of long standing companies. Upon the harsh economic times, lay offs were inevitable and my wife and I both found ourselves laid off. Not to mention, a baby on the way. We were unprepared for this unknown fate and as a result, have not been able to make our mortgage payments.
The current market conditions resulted in an under appraised home. We have both been laid off for almost a year, thus depleting our savings. Although our efforts to find new jobs has been a full time job in itself, no jobs have become available in this area. I finally received a job offer in another state, but the pay is much less and my wife is staying home with our new baby.
I feel certain that a short sale is the best option for us to get out of this situation and hopefully move forward with our lives.
Thank you in advance for allowing us this opportunity to short sale on our home.
Please do not hesitate to contact me and our Realtor who is assisting us in this entire transaction.”
CLICK HERE TO READ THE ENTIRE BLOG.
If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.
More Video Blogs
Honolulu Real Estate Is A Good Investment
Honolulu Home Median Price of $1,000,000
Honolulu real estate makes a lot of sense over 10 years
Buying more might make your retirement better
Under New Rules-Lenders Even More Important
Sellers Beware Of Company Addenda
Sellers Get Your Surveys In Advance
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Fed Increases Key Interest Rate
February 19th, 2010 categories: Mortgages & Financing, The Market
Maybe Tim O’Leary, of Wells Fargo, is a clairevoyant. In my last blog, I reported that in a conversation with him yesterday, he mentioned that interest rates have been moving up, and then this morning I notice that the BBC reported the following action by the Federal Reserve.
“The US central bank said late on Thursday that it was lifting its discount rate to 0.75%, from 0.5%.” CLICK HERE TO READ THE ENTIRE ARTICLE
Just remember that everything cycles, tides ebb and flow and so do Honolulu real estate mortgage loan interest rates. We have been at lows for sometime and one should expect rates to move up for a while. So, here’s some advice, buy now!
If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.
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Rates Rise For Honolulu Real Estate Loans
February 19th, 2010 categories: Mortgages & Financing, The Market
Yesterday, I was talking with Tim O,Leary, of Wells Fargo, and he let me know that interest rates have risen about an eighth of a percent in the last week. I asked him what interest rate a buyer would get if they would have locked a rate today and he said it would be around 4.875%. That is up from about 4.75% the week before.
I asked Tim about his short to mid-term prognosis for interest rates and I got the impression that he thinks we have seen the lows and that rates could be around 6% at the by the end of the year.
Maybe I am showing may age but either rate does not sound high (4.875% or 6%) to me. In fact, in my opinion, any rate below 8% is a low rate. Obviously, I like them as low as possible since it helps buyers to purchase more of a home and sellers to get sold. Here is the moral of this blog post, if you are thinking about buying, now is a great time to make you loan application, get pre-approved and buy they home you have been dreaming about.
If you want to call Tim, you can reach him at 808-227-1199.
If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.
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All FHA Lenders Are Not Created Equal!
February 10th, 2010 categories: Mortgages & Financing
The FHA Condo Approval process changed on February 1st, 2010 and choosing the right lender could be the difference between getting the Honolulu home you desire or losing it to a stronger buyer.
Consider the two differ type of FHA lender approval process:
HRAP- Department of Housing and Urban Development Review & Approval Process. After making your loan application it will be reviewed by the Department of Housing and Urban Development in Santa Ana, California. This will take from 6 to 8 weeks.
DELRAP- Direct Endorsement Lender Review and Approval Process. This option is only available to lenders who have unconditional Direct Endorsement (DE) authority. Wells Fargo’s experience and expertise qualifies it as Direct Endorsement lender. As a DE Lender, I am able to reduce your FHA condo approval process to two weeks, thus putting you in a position to close more quickly and compete well for the good properties.
I’m Tim O’Leary, Private Mortgage Banker with Wells Fargo Home Mortgage of Hawaii, please feel free contact me at 808-227-1199 to discuss your specific mortgage needs. CLICK HERE TO START THE APPLICATION PROCESS.
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Common Borrower Mistakes In Honolulu Real Estate
January 25th, 2010 categories: Mortgages & Financing
Over the years, I’ve been able to ‘coach’ people through the loan process. Some of the issues I discuss usually hover around ‘being mentally prepared’ to make your transaction go smoothly. Here are the three most common mistakes.
1. Underestimating the importance of providing accurate & thorough information to your Loan Officer regarding pay stubs, bank statements, deposits & credit items. Did you know that the bank statements that have ‘the fine print’ are required too? When it says “8 of 8” pages, provide ALL 8 pages.
2. Assuming the transaction will go without a ‘hitch’. Every transaction and every Buyer is unique. When I hear other Loan Officers telling client’s “this will be a slam dunk”, it literally makes my hair stand up! Especially in today’s lending environment, don’t trust a lender who says anything about how easy getting a loan is going to be. Your loan officer needs to anticipate potential issues and work with you to eliminate or manage them to your benefit. Expect issues (every borrower has them) and work with a proactive lender that will guide you through the process
3. Shopping for the lowest interest rate. Most lenders have very similar rates. You will see and hear of insanely low mortgage rates, but in today’s world your rate is going to be determined by your credit history and income. Low rates reflected “on-line” and in the newspaper are the lowest possible rate available for the buyer with extremely good credit and high income. Over my many years in the lending business, I have seen many buyers snagged by a promised low interest rate only to find out that for one reason or another they don’t qualify for the lower rate. Over the last two years, there have been an earth-shaking shifts in the lending process. My advice is that you select a trustworthy and experienced lender, who works with a large national lender. The combination of the experience and corporate strength will lead to you getting the home you want and the smoothest possible borrowing experience.
Feel free to call me, Tim O’Leary, at 808-227-1199 to discuss your specific questions concerning a home purchase or refinance of an existing loan. CLICK HERE TO START THE APPLICATION PROCESS.
Tim O’Leary
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Guest Writer For Honolulu Real Estate Issues
January 21st, 2010 categories: Mortgages & Financing
My goal with Honolulurealesateviews.com is to provide you with insight and information on the Honolulu and Oahu real estate markets. Until now I have written most of the over 600 articles currently posted at this site. I understand that I have a strong base of general knowledge in almost all aspects of Hawaii real estate sales and issues. However, in an effort to provide you the most specific and helpful information on the Oahu market, I have decided to add new voices to the blog. These guest bloggers will be some of the most experienced and successful professionals in their specific real estate oriented niche. As time goes on, I’m looking for people with expertise in 1031 Tax Deferred Exchanges, setting up trusts, escrow, surveying and more. Today, I am fortunate to introduce my first guest writer, Tim O’Leary of Wells Fargo Home Loans of Hawaii.
I have known Tim O’Leary personally and as a mortgage lender since 1992. Over the years, he has helped my clients and me obtain and qualify for many mortgages. His long experience provides him the insight to understand structuring your loan application, so that you are positioned to get the best rate, quickly and to have a pleasant mortgage experience.
I expect Mr. O’Leary to us clear and concise information on the today’s always-changing mortgage lending business. With this information, we (you and I) will be in a position to take advantage of the best the lending market may have to offer. If you are learning about mortgages be sure to look for Tim’s posts.
SEARCH FOR YOUR HONOLULU HOMEg
If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.
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5% Down Conventional Loans Coming Back To Honolulu?
January 13th, 2010 categories: For Buyers, Mortgages & Financing
Yesterday, an anonymous source at one of the Hawaii’s major lenders told me that within the next few weeks they would have conventional financing with a minimum down payment requirement of 5% of the purchase price. Since the mortgage market melt down the minimum conventional loan down payment was extended from zero (this was crazy) to 10% down. An even bigger issue has been the tightening of lending guidelines. I will be the first to say that the guidelines needed to be more stringent, however, it is my opinion that the lending community overreacted and made it much too difficult to get a mortgage. So why am I “crowing” about the decrease in required down payments?
In order for the Honolulu real estate market to “turn”, lenders will need to be willing to loosen their lending rules and provide financing for buyers that cannot currently qualify for a loan. This reduction in down payment may signal a shift in the lending communities mass psyche and could portend more available financing in the near future. As more money is available for loans, you will see values start to move in a positive direction. This change will be good for home and condo sales as well as Hawaii’s overall economy.
If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.
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Bank High Ranking Good & Bad For Honolulu Real Estate
January 12th, 2010 categories: Mortgages & Financing, The Market
According to an article in the Honolulu Advertiser, Forbes Magazine recently ranked Bank of Hawaii as “the nations top performing bank”.
“The Forbes ranking is based on eight financial performance measures, which include: return on average equity, net interest margin, nonperforming loans as a percentage of loans, non-performing assets as a percentage of assets, reserves as a percentage of nonperforming loans, two capital ratios and leverage ratio.” CLICK HERE TO READ THE HONOLULU ADVERTISER ARTICLE
This is a blessing and a curse for the Honolulu real estate market. It is a blessing because a weak Bank of Hawaii would not be good for our economy of the mental psyche of our community. It is a curse because as the article states, “Bank of Hawaii earned the honor by sticking to a conservative policy on loans…” which means that it may be difficult to get a loan at one of Hawaii’s biggest lenders. Evidence that financing is key to selling a property can be found in the vacant land market. There are very few lenders if any that will make loans on vacant land and, thus, our vacant land market is slow. Portions of our market that are moving have readily available financing.
If I were running the Bank of Hawaii I would consider loosening lending guidelines to gain market share and good will. So those of you with Mr. Landon’s ear (Bankoh’s main man)…pass on my message.
If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.
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Home Tax Credit Rules Honolulu Buyers
December 22nd, 2009 categories: For Buyers, Military, Mortgages & Financing
The vaunted Federal Home Buyer Tax Credit has been extended through the end of April 2010. As you can imagine there are a great many rules and conditions to consider when using it to complete your purchase. Ron Li (808-778-6538), a mortgage lender with Metlife, mailed me a helpful and detailed set of handouts that should answer almost all of questions about the available credits. Just click on the links below to get the information relevant to your situation.
First time buyer tax credit information (details).
Move up homebuyer tax credit (details).
Homebuyer tax credit for military personnel (details).
Homebuyer tax credit resources.
If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.
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