Once you decide the time is right to buy a home, one of the first steps is to find an Oahu lender. There are a few options to consider such as banks, mortgage brokers and internet lenders. All offer different financing options. To choose the lender that’s right for you, it’s important to understand the pros and cons of each.
Banks, such as First Hawaiian and Bank of Hawaii, offer the safety and security of federal regulation. In addition, if you have been with a particular bank for a while and have a good working relationship, you may qualify for a better rate. The downside of choosing a bank is that they may not offer the best rates.
Mortgage Brokers, such as Pacific Access Mortgage, have access to many different money sources and will shop around to find the best rates. One possible disadvantage of working with a mortgage broker is they may charge higher loan origination fees (points).
Internet lenders, such as Lending Tree and E*Trade, allow you to shop for the most competitive rates available online. The downside of internet lending, and this is HUGE in Hawaii, is that it is all on you. You are responsible for all of the research involved and there is little personal communication. BEWARE, many internet lenders are not familiar with Hawaiian property and the way business is conducted in Hawaii, so they may not be able to grant the loan conditions initially promised.
As I write, mortgage rates are below 5%; near their historic lows. If you are employed and can afford it, today’s interest rates represent a tremendous opportunity to buy a home or investment property. But first, do your research and find the lender that’s right for you.
