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3 Things First-Time Home Buyers Overlook


Buying a home can be an overwhelming process. There’s so much to learn and it can be hard to keep track on what’s important. Here are three things most first-time homebuyers overlook.

Principal, interest, and…

Your mortgage payment is commonly broken down to principal and interest. However, don’t forget to factor in other monthly costs like, your maintenance fee, property taxes, and your homeowner’s insurance. In addition, don’t forget utilities too. Factoring in these costs will give you a more accurate quote on what your total monthly payment will be.

You Don’t Have 20% Down? Don’t worry…

Home prices are high in Hawaii and not many people can put 20% down. For conventional loans, some lenders allow you to put as low as 5% down. If you put less than 20%, there will be mortgage insurance. Did you know you can pay off the mortgage insurance at closing? If you do this, the lump sum payment will be less than if you paid it monthly.

Closing Costs

There are two types of closings costs. One closing cost is from escrow. Your escrow closing costs are primarily your title insurance and escrow fee. This varies based on the type of property you are purchasing.

The second type of closing cost is from the lender (assuming you finance the purchase). This ranges from mortgage points, the appraisal, credit report, and homeowner transfer fee (for associations).

-Roda

#ryanoda #homeownership #buyers #escrow #mortgage

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Ryan Oda (RB-23073) is a Real Estate Advisor with Forward Realty (RB-19423) in Honolulu, HI.