The real estate market and mortgage industry have changed in the recent years.  Securing financing for your Maui home is more difficult than what it used to be.  Here are some tips to help you plan better and avoid delays, denial, or disapporval of financing for your home on Maui.

1. Use the “best” lender available.  The “best” will end up costing you less.

 

2. Use your lender as a resource.  They will be able to refer you to the best realtors, escrow companies and insurance companies.

 

3. Work with an independent lender not affiliated with a bank, real estate company or a developer.  You want someone working for you.

 

4. Use a company that is both a mortgage banker and broker for the best interest rates and the most options.

 

5. Ask about the lenders fall-out ratio.  Work with someone who has a reputation for closing transactions and meeting the required dates in the contract.

 

6. Work with a local lender.  Using a mainland lender will lower your credibility in the offer and will increase your chance of falling out of escrow.

 

7. Obtain a conditional loan commitment letter before you make an offer, it will strengthen your negotiating power.
8. Work with a lender who can do a fast final loan approval — 15 days or less. That will make your offer “clean” and in the seller’s eyes, more viable.

 

9. If you want to sell another property prior to closing the purchase, ask your lender about obtaining bridge financing to avoid a contingency for the sale of another property, that would weaken your offer.

 

10. Discuss your goals for the property with your lender.  Make sure the loan you obtain fits your goals and your financial ability.