THREE STEPS TO HOME OWNERSHIP

By Tricia Morris,
President, Premiere Mortgage

If you are among those who are thinking of buying a home on Maui, there are three simple steps you can take to help prepare for your purchase.

A helpful first step is visiting a professional mortgage broker. Mortgage brokers have access to many lenders and now produce about 70 percent of residential loans. One reason for this is because mortgage brokers can compare interest rates and lenders on behalf of a client. This allows the mortgage broker to locate the best lending program and interest rate for homebuyers who may have specific financial needs.

Mortgage brokers also help to resolve credit issues on a client’s credit report and they are experienced at reviewing complex financial documentation such as corporations, partnerships and trusts.

The second step is to increase your probability of loan approval by taking a look at your credit ratings and reviewing your personal finances. If your credit is not as good as you want it to be, take measures to improve it before beginning to look for a new home.

Obtain copies of your credit report, or call your mortgage lender and they can, with your permission, obtain copies for you;

Inform the credit bureau if a creditor has given you a negative comment in error or as the result of a dispute. Inform the credit bureau of any mistakes made in the compilation of your credit record. Start now, that this can take up to 90 days from start to finish;

Contact any creditors who have filed negative information in your credit report and see what you can do to repair it;

Pay off as much as you can on credit card debt and high interest loans. Outstanding consumer debt can adversely affect your credit score;

If possible, defer any major purchases using your credit. For example, hold off on the purchase of a new car until after you have bought your home.

Third, select a reputable real estate professional to help you in your search. Ask for suggestions from neighbors, friends, colleagues and your mortgage lender. Check your local newspapers for agents who are advertising. Talk with agents hosting open houses.

Now you have it all together: the best island in the world, a strong partnership with a professional mortgage broker, a solid financial review, and a real estate professional who knows exactly what you want. With a little advanced preparation, you just might be in your new home sooner than you think.

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