Typical Buyers Checklist when Purchasing Oahu Real Estate
When buying a home in Oahu or Hawaii property, it’s best to have a clear plan and outline to know what’s going to happen and what you may need to be prepared for the process. Collecting personal documents and information can help make the transaction work smoother and get you closed on time. Here is a basic checklist of the steps to the home buying process and items you may need along the way.
Get Pre-Approved for a Loan
Sit down with a lender and talk about Pre-Qualification before even looking for homes. This will prepare you ahead of time and assures you can actually afford the home you want to buy. The lender will need income documents, bank statements, credit card statements and any other loan documents. Your lender will need to know exactly how much money you have coming in and what goes out each month to determine a good price range to start your search within.
Have a Pre-Approval Letter Ready for sellers
Once you are pre-approved ask your lender for a letter of pre-approval to submit to sellers when presenting an offer. This shows you are a serious buyer not willing to waste anyone’s time.
Submit a Solid Offer with an Earnest Money Deposit
Sellers want to see some step of good faith that you will put money on the deal up front. Having a 1-3% of the purchase price earnest money deposit shows you are not willing to walk away from the deal so easily. A copy of these is submitted with the offer but does not get deposited until there is mutual acceptance.
Once There is Mutual Acceptance Proceed to Inspection
Many times there may be a counter offer on your original offer. You can decide to continue the negotiations or terminate the deal right there. You are also welcome to scrap the first offer and write a complete new one as well. If the transaction is to proceed, each party must agree on the offer with mutual consent and initial or sign on the contract reflecting the agreement.
Have a Professional Inspection Completed
Regardless of how the inspection contingencies operate always have a professional inspector that knows Hawaii real estate to complete the inspection. This is a large investment and you wouldn’t buy $300,000 worth of stock that you knew nothing about. Consider this in the same fashion. Know as much as you can about the home before you agree to purchase. Oahu Realtors can offer references and suggestions for all parties involved including title and escrow but the choice is ultimately yours.
Return the Inspection Contingency Addendum
You have several choices when signing the inspection addendum. You can either reject the inspection altogether and kill the deal, you can approve the inspection and proceed to closing or you can negotiate terms for issues found during the inspection. This can also be negotiated a variety of ways. You can ask for funds at closing, ask for the repairs to be made by the seller or qualified professional or ask for a lower purchase price. This addendum too must be mutually agreed upon before the transaction can proceed.
Obtain Homeowners Insurance and Close up Loose Ends with Escrow
This is more of a quiet time between inspection and closing where any loose ends need to be finalized. The property is now considered “pending” or “under contract”. This is the time your lender really goes to work to finalize loan documents, escrow collects any final instructions or documents and title searches are conducted. The best thing you can do during this time is plan for the move and stay in contact with your Oahu Realtor. As your Hawaii Realtor we will keep you up to date on all proceedings and where every party is at in the process.
Escrow will Call for Final Signing
About 1-3 days before the actual closing of the property sale, Escrow will call you for final initially and signing of all the documents to close out the loan. You will meet with your Escrow officer and go over all the documents. This is a time to ask any clarifying questions you are not clear on. Escrow deals with these cases every day so don’t be shy about asking. Once these are signed by both buyer and seller separately the final documents will go to the lender to release funds and the deed will be recorded at the county seat. This is when closing actually occurs and no time prior to this can keys be handed over to the buyer.
This is the basic steps to buying process. Each transaction and sale is slightly different and may require less or more contingencies or documents. We would love to help facilitate your next Oahu homes purchase.