Guam Real Estate - Dino Zervoulakos (R)

Hot Tips for Buyers and Sellers

10 Questions to ask Lenders

Your relationship with a lender can potentially last 30 years. That’s a long time to be unhappy. To find a lender and loan that fit your needs, ask lending companies the following:

1. What are the most popular mortgage loans you make? Why?
2. Which type of mortgage plan do you think would suit us? Why?
3. Are your rates, terms, fees, and closing costs negotiable?
4. Will I have to buy private mortgage insurance? If so, how much will it cost, and how long will it be required? PMI is usually required if you put down less than 20 percent. Most lenders will let you discontinue the policy when you reach 20 percent equity by paying down the loan. But you’ll likely have to initiate the change. Lenders are required to cancel your PMI only when you      reach 22 percent equity.
5. Who’ll service the loan – your bank or another company?
6. What escrow requirements to you have? Examples: number of days in      advance of closing that money has to be deposited; form money must be in,      such as cashier’s check.
7. How long is your lock-in period (the time that the quoted interest rate will be      honored)? Will I be able to obtain a lower rate if rates drop during this time?
8. How long will the loan approval process take?
9. How long will it take to close the loan?
10. Are there any charges or penalties for prepaying the loan?

(FOR HAWAII ONLY)
Honolulu Board of Realtors
HBR Update May 2004
(page 4)

City's Down Payment Loan Program

The City and County of Honolulu's Down Payment Loan Program provides low interest loans up to $25,000, to assist low and moderate-income, first-time home buyers meet up front down payment and closing costs required to qualify for a mortgage loan. Those eligible are first-time home buyers for those who have not owned residential property on Oahu within the last three years whose household income is within a particular income schedule. For more information, call the City's Downtown branch at 527-5907 or the Kapolei branch at 692-5809.