One of the latest trends in the mortgage industry in the Hawaiian islands involves pre-approving borrower loans. Prospective buyers will know what they can afford before shopping for a home. When you pre-approve, home sellers and real estate agents will know you are a serious buyer. Being approved for a loan makes the home-shopping process much more efficient and productive. A Pre-Approval program gives you more leverage when you are negotiating a contract and results in expediting the loan process when you have found your desired property.

A little bit more on Financial Education and some available products in the Hawaii mortgage industry. In some programs, senior homeowners must complete an approved financial education session — sometimes called counseling — before they can fill out an application for a reverse mortgage loan. Reverse mortgages are mainly offered by commercial banks, thrifts, mortgage banking organizations, consumer finance firms, and financial services corporations.

Title Charges – a title is the document that shows who owns a property. It is necessary for an attorney to examine a title to make sure there are no problems that would prevent you from having clear (legal) Hawaii property title. It is also necessary to get title insurance in case someone else should try to claim title to your envisaged property. Fees for title examination and title insurance will be included in the closing costs of the mortgage deal.

A home equity line of credit is a form of revolving credit in which your home property serves as collateral. Think of it as a credit card that is secured by the equity in your Hawaiian home. Many homeowners use these credit lines for major items such as debt consolidation, travel expenses and home improvements.