Although the jobs report might not be looking so good and small businesses are not hiring, now might well be the time to seriously consider buying your first home in Hawaii. Why? There is less competition for loans at the moment and banks, although not willing to finance payrolls in business, are willing to invest in long-term property loans.
Some factors that are still necessary to keep in mind are credit scores and salary. Banks still like to see a credit score be 750 or above, especially if you do not have a co-signer. Plus, you will, now more than ever, have to verify income, and that is net income. No more looks at gross income and pretend that is anything close to the real take home pay. That scenario is over. These things, though, are nothing to fret over. Ultimately, they are better for you, the banks and everyone else in the economy here and abroad.
The good news is really great news because even with these tougher regulations banks are being more flexible on the types of loans they are offering. Thirty year loans used to be the standard, but now it is not unheard of to be offered 40 or even 50 year loans. The reason is that people are living longer and retiring later. Your viability can be accessed by the bank for a much longer period of time in this new market. This will result in a lower payment over longer period of time.
Green homing is becoming more of a standard rather than a trend. Banks are eager to unload older model homes just to get rid of what will eventually become a bad asset. Bad for them, good for you. As long as you keep in mind that these properties will need to be improved upon to meet eventual new codes and regulations you will be fine. These improvements can be done slowly over a period of years.
It may be sad to say, but currently foreclosed homes are usually a good buy. Banks are willing to let them go for a steal. The catch is that you will be responsible for any back payments in the closing costs, but here again forewarned is forearmed.
Look any home purchase will have its ups and down. You must do research on the property, the neighborhood's past and the city's plan for its future, and be sure of your own personal commitment to the purchase. But if you are in the position to buy today's market is now ripe for the plucking.
