The Home Buyer's Korner

Information presented should be used for educational purposes only.

June 17th, 2015

Guy looking up in color

GREATER KAILUA/WAIMANALO HAWAII

The Home Buyer’s Korner

Google+ RE Community

Google+ Mortgage Lender Community

Google+ General Contractor Communities

Closing Costs & Escrow Accounts

man with empty pockets

It’s not just about the rate when shopping for a mortgage. Home buyers need to understand the importance of taking closing costs into account. While some closing costs are the same for all lenders, the programs offered may increase or reduce the amount of closing cost a home buyer is burden with when purchasing a home.

Most lender offer an escrow account for things like property taxes and insurance and many more require home buyers who have a mortgage establish an escrow account. If you’re required or want to set one up, most lenders require it be funded with a mathematical formula that provides about 14 months’ worth of property taxes and insurance when they come due.

Your title agent will calculation a pro-rated amount from the day of closing and collect any property taxes that will come due from the last property tax date to the day of closing and collect those taxes from the seller. You’ll be obligated to pay the remaining estimated property taxes due from the date of closing to the next due date for the property tax on your home. This can represent several hundred to several thousands of dollars depending on the property taxes associated with a property. While everyone has to pay property taxes, finding a home in a low tax area can significantly reduce the cost of closing on a loan.

So, explaining property taxes further we’ll assume property taxes are due once a year on November 1st of each year and you’re schedule to close on Jun 30th. As stated earlier your title agent will determine what the last property tax rate was and pro-rate the seller’s portion. If property taxes are three thousand a year, the seller property taxes due based on your closing date of Jun 30th would be $2000.01 or eight months of estimated property taxes and you own the remaining four months or $999.99, plus the require reserves of two months.

Additionally, mortgage payments are paid in arrears and not in advance like rent, so your first payment based on a Jun 30th closing would be Aug 1st. Your lender will collect 1/12th of the estimated property taxes with your first and consecutive payments. Therefore you will actually pay one month of taxes at closing plus two month for reserves with the three remaining months to be collected in your first three house payments to make a full payment due on your annual property taxes.

It’s best to discuss in detail with your real estate agent just how much money you have for a down payment and closing cost, but even if you don’t have any savings a real estate agent can still help you purchase a home. They might point you to homes that qualify for a USDA Zero Down Home Loan Program and work with the seller to pay your closing cost or even finance your closing cost into the loan.

Sellers are often able to pay all or part of a home buyer’s closing cost and while you want to get the best deal possible, the sale price may not be the only factor you should be interested in. Although a seller does not have to offer any concessions, they could potentially provide hundreds or thousands of dollars in seller concessions to help you finance your home. If you’re cash strapped, work with your real estate agent to consider an offer that is attractive to your seller and includes seller paid closing cost.

Many city and states housing authorizes offer down payment assistance programs for first time home buyers that will assist you with the down payment and some or all of your closing cost.

Most lenders can also offer lender credits to closing cost and will charge you a slightly higher interest rate, which enables many cash strapped home buyer the needed funds to pay closing cost. While lender credits aren’t counted toward the down payment, it can significantly help anyone who may not have the thousands of dollars to pay for the various closing cost involved in purchasing a home.

A home buyer can save a lot of up-front cost by talking first with a real estate agent and loan officer before looking for a home and that doesn’t cost you a thing. By doing some research about down payment requirements, closing cost and allowable credits toward closing costs, those who may have felt that home ownership was beyond their reach may be able to achieve the dream with a little help along the way.

VISIT OUR GREATER KAILUA/WAIMANALO AREA

HOMES FOR SALE LISTINGS

Livingston Homes for Sale

FIND HOMES THROUGHOUT KAILUA/WAIMANALO HAWAII

HUD FORECLOSED HOMES IN & AROUND THE GREATER KAILUA/WAIMANALO HI

USDA FORECLOSED HOMES IN & AROUND THE GREATER KAILUA/WAIMANALO HI

FNMA HOMEPATH FORECLOSED HOMES IN & AROUND KAILUA/WAIMANALO HI

FIND MORE FORECLOSURES IN & AROUND KAILUA/WAIMANALO HI

HAWAII HOME OWNERSHIP TOOLS

Your Home Purchasing or Refinancing & Renovation Tools,

Home Improvements, Home Renovations,

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase.

Here are just a few of the home improvements

you might consider with any Home Renovation loan

Repair or replace a roof

Install, replace or repair gutters and downspouts

Replace, repair or upgrade your HVAC system

Repair or replace plumbing

Install, repair or replace electrical systems

Kitchen remodeling (including the purchase and installation of appliances)

Bathroom remodeling, Full interior painting, Total exterior painting

Repair or replace a septic system and/or well

Disability access (wheelchair ramp, elevator, widen doorways)

Build, repair or replace deck, patio or porch

Basement waterproofing and finishing

Abatement/Stabilization of lead-based paint hazards

Replace old windows, Room additions, Finish an attic

Add a second story to your home

Replace a termite damaged sill plate (a water-damaged sill plate also)

Possible landscaping items such as correction of grading & drainage problems,

tree removal, repair a driveway and sidewalks

FHA 203K

Your Home Purchasing or Refinancing & Renovation Tool

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

FANNIE MAE HOMESTYLE

The Conventional Alternative to FHA 203K

Great for Real Estate Investors and Second Home Renovations

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

USDA RURAL DEVELOPMENT

Up to $10K for Home Improvements, Renovations or a Simple Remodel

Mortgage Loan Officers, Real Estate Agents & General Contractors are ready to assist you

A SIMPLE HOME SHOPPING INSPECTION TOOL

Organizing your home shopping experience affords a wise decision-making process.

This simple home inspection tool makes your ultimate buying decision a smart one.

To print this document click on “Open in New Window” located at the lower right corner;

click on “File”; then click on “Print”. In the center of the screen you will

have the option to “Create A Printable PDF of the Presentation”.

START YOUR PATH TO HOME OWNERSHIP TODAY

FNMA HomeStyle FNMA My Community Mortgage FHA One-Time Close Construction Portfolio or VA home loan Homes for Sale REO Short Sales FNMA HomePath Properties HUD Homes USDA Homes Condominiums Co-OpsTown homes Manufactured Homes Modular Homes Mobile Homes Log Homes Second Homes Investment Property 2-4 Family Custom Home Builders Custom Built Homes Luxury Homes General Contractors Home Improvement Experts Kitchen & Bathroom Renovations Real Estate Brokers & Agents Mortgage Lenders Federal Credit Unions Community Bankers Real Estate Listings Jumbo Investor Hard Money HARP HECM Equity Zero 3% 3.5% Portfolio Non-Warrantable Down Payment Assistance Keolu Hills Lanikai Maunawili Pohakupu Waimanalo Waimanalo Beach Aikahi-Kaimalino Coconut Grove-Kalama Country Club Knolls Enchanted Lake Enchanted Lakes Hillcrest Kailua- Kawainui Vista Kalaheo Kalaheo Hillside Kukanono Kuulei Lanikai Olomana Oneawa Canal Neighbors Pohakupu Aikahi-Park Beachside Bluestone Kaiilua Bluffs Kailua Estates Kailua Town Kaopa Kawailoa Keolu Hills Kukilakila Kuulei Tract Maunawili Kaluamoo St Kaluli St Manulani St KAM HWY Kamahele Pl Kamahele St Panekai Pl Kamani Kai Pl Kaikaina St Paumakua Pl Kina Srtreet Kina St Kanaha St KANAPUU KANAPUU DR Kanapuu Pl Paulele St Kaneapu Pl Aleka Pl Kaneohe Bay Dr Kaneohe Bay Dr KANEOHE BAY DR Hoolea Pl Paokano Loop Paokano Pl Paopua Loop Paopua Pl Hoopuni Dr Paumakua Pl Paumakua Way Papalani St Hui St Hooulu St Kapaa St Aukele St Aulepe St Aulike St Aulima Loop AULOA RD Aumoe Rd Aunauna St Aupapaohe St Aupula Pl Aupupu Pl Aupupu St Mowai St Aulike Street Nowela Pl Pokole Way Uilama St Paakiki Pl Paako St Haokea Dr Humuula Pl Humuula St Humuwili Pl Noninui Pl Ulualana Pl Uluamahi Pl Ulueki Pl Ulueo St Uluhaku Pl Uluhaku St Uluhala Pl Uluhala St Uluhao Pl Uluhao St Ulukahiki St Ulukanu St Ulukou St Ululani St Ulumalu St Ulumanu Dr Ulumawao St Ulumu St Ulunahele St Uluniu St Uluoa St Uluopihi Loop ULUPA Ulupa St Ulupaina St Ulupalakua St Ulupii Pl Ulupii St Ulupuni St Holoholo St. Holoholo Hale Kainalu Dr Kalaheo Ave Kalaheo Ave Pouli Rd KAHAIAKA Kalaheo Ave Kailua Hi MOKAPU RD MOKAPU ROAD KMCAS Dune Cir Hepaki Pl Nunu St Alihi Pl White Sands Pl Makalii Pl POMAHINA PL Makawao St Koohoo Pl Kooku Pl HALELA PL Halela St Makua St Lanipo Dr Wilikoki Pl Maleko St Lihiwai Rd Liku St HALIA ST Halia St Kaulani Way Kaumana Pl Auwai St Auwaiku St Auwina Pl Auwina St Auwinala Rd Olomana St OLOMANA ST KAIL Kawailoa Rd Kawailoa Rd Kawainui St Old Kalanianaole Rd Luika Pl Keolu Dr Aikahi Loop Aikahi Pl Aikane Pl Aikane St Aikapa Pl Aikapa St Pahumele Pl Pahumele Way Lekeona St Lapa Pl Aimikana St Ainoni St HAHANI ST Aoloa Pl Aoloa St 641 Auwina St Aiokoa St Namala Pl Nanaloko Pl Wanaao Pl Wanaao Rd Nanawale Pl Nanawale Way Omao St MOKAPU BLVD AKUMU ST Lorange Pl Makalii Pl Kaneapu Kealahou Pl Lunaai Pl Lunaai St Lunaanela Pl Lunaanela St Lunaapono Pl Lunaawa Pl Lunahai Pl Lunahana Pl Lunahaneli Pl Lunahelu Pl Lunahelu St Lunahooia Pl Lunahooko Pl Keaniani Pl Keaniani St NAPUAHANI RD Laiki Pl Kuaaina Way Kuailima Dr Maunawili Cir Maunawili Loop Maunawili Rd Kupau St Kuau St Nanialii St Nanialii St Molo St Ponopono Pl Palapu St Akipola St Paako St Palawiki St Akaakaawa St Akaakoa Pl Akaakoa St Akahai St Akahele Pl Akaiki St Akake Pl Akake Way Akaki Way Akalani Loop Kukana Pl Akalani Pl Kukana Way Akalei Pl Akamai Pl Akamai Pl Akamai St Akanahe Pl Akea Pl Akeke Pl Akekeke Pl Akele St MALUNIU Maluniu Ave MALUNIU ST Holoholo St Akiahala Pl Akiahala St Akialoa Pl Akialoa Way Akiikii Pl Pilipu Pl Onaona Pl Apokula Pl Apokula St Kuloaa Pl Akiohala Pl Mapuana Pl Akiohala St AKIPOHE PL Akipohe St Akipola St Mapuana St Akiu Pl Old Mokapu Rd Akoakoa Pl Akoakoa St Hauoli St Halula Pl Palione Pl Akuila Pl Akuleana Pl Akumu Pl AKUMU ST Akupa Pl Akupa St Mookua St Kupau Pl KUPAU ST Hamakua Dr Hamakua Pl Poo Pl Oneawa Kai Pl Oneawa Pl Oneawa St Manae St Kuuala St Kuuhale St Kuuhoa Pl Kuukama St Kuulei Rd Kuumele Pl Kuuna Pl Kuuna St Kuupua St Poopoo Pl Aalapapa Dr Onekea Dr Kehaulani Dr Wailepo Place Onioni St Wailepo Pl Wailepo St Lopaka Pl Lopaka Way Hinano Way Alahaki St Kailuana Pl Alala Pl Alala Rd Kipuka Pl Pinana St Mei Pl Ilimalia Loop Kelewina Pl Kelewina St Ohana St Puako Way Aloha Oe Dr Ohiki Pl Poopoo Pl Kuulei Road Main House Iopono Loop Pueohala Pl Alahaki St Mahealani Pl Iana Pl Iana St Mahiloa Pl Lala Pl LALE ST Lale St Lama Pl Kihapai Pl Kihapai St Aoloa Pl Pukoa St Kika Pl Kika St Hekili St Kalaheo Ave Hele St Tbd Lopaka Way Mokapu Rd OKO ST Akipola street Popoia Rd Hualani St Punaa St Punaa St Punana Loop Manono St Ka Awakea Pl Ka Awakea Rd Kiukee Pl Punua Pl Punua Way Loho St Aala Dr Aalapapa Dr Aalapapa Pl Aalapapa Way Kaanua Pl Milokai Pl Milokai St Kaapuni Dr Kainalu Dr Kalaheo Ave KAELEPULU Kaelepulu Dr Kaha Pl Kaha St Lokelau Pl Kahako Pl Kahako St Mokapu Blvd Mokapu Rd Mokolea Dr Kahili Pl Kahili St Mokulua Dr Lola Pl Mokulua Dr Mokumanu Dr Lola Way Kahoa Dr Auauki St Kai Nani Pl Kai One Pl Kaapuni Dr Lanae Way Kaiemi St NOKE ST Kaiholu Pl Kaiholu St Kaihone Way Kaikaina St Kaikea Pl KAILUA RD Kailuana Loop Kailuana Pl Kailulu Way Kaimake LoopKaimalino Pl Kaimalino St Kaimi St Kaimoani Way Kihapai St Ikemaka Pl KAINALU DR KAINALU ST Kainui Dr Kainui Pl Kaiolena Dr Kaiolino Way Kaipiha St Kaipii St Kaipii St Kai One Pl MOLO MOLO ST Pamaele St Kakahiaka St Lauloa St Launa Aloha Pl AWAKEA RD Iliaina Pl Iliaina St Kalaheo Ave Kalaka Pl Ilihau St Ilikaa Pl Ilikai St Ilikala Pl Ilikea Pl Ilikupono St Ililani St Ilimalia Loop Ilimalia Pl Ilimano Pl Ilimano St Kalama St Ilipilo St Iliwahi Loop Kalanianaole Hwy KALANIANAOLE HWY Kalawai Pl Hanale Pl Puualoha St Puukani Pl Noke St PUWA PL Pauahilani Pl Pauahilani Way Paukiki St Pauku St Manu Aloha St Manu Laiki St Manu Mele St Manu Oo St Kalolina Pl Kalolina St Aoloa St Aoloa St HIHIMANU ST Kawahine Pl Makaainana St Poalima Pl POALIMA ST Kuhimana Pl Kuhimana St ALAIHI ST Makakalo St Paloa Pl Mooiki St Kekumu Pl Moole St Hekiliiki Pl Kaulukanu St Hekilinui Pl Nonokio St Laumilo St Laukalo St Ahiki St Kanehunamoku Pl Laulii Way Laumilo St Waikaloa St Kulaiwi St Waikupanaha Pl Waikupanaha St WAILEA Kakaina Pl Kakaina St PIOHIA PL Kumauna Pl WAILEA ST Ilauhole St Kumuhau St Kumuula St 9TH Kaulukanu Pl KALANIANAOLE HWY Nenue St ROADWAY-KALANIANAOLE Bell St Kalau Pl MANANA ST Waiokeola St Wailea St Mahiku Pl Inoa St Inoaole St Kalanianaole Hwy ALOILOI ST Hoopulapula St Mahailua St Koa Moali Pl Manawaiola St Haunaukoi St Oluolu St Kaaiai St Mokulama St Flamingo St Mahiku Pl Kaauiki Pl Kaaumana Pl Kaaumana Pl Kaaumoana Pl Humuka Loop Humuna Pl Humuniki Pl Humuniki St Humupaa Pl Humupaa St HULI ST Kalanianaole Hwy Haleiki Pl HAUNAUKOI ST KUMUHAU ST NAKINI ST Hanalulu Pl ALA KOA Ala Koa St Saddle City Rd Lupe St Kamanaaina Pl Kamanaoio Pl Malolo St Paupahapaha Pl PUUONE ST EHUKAI ST Mekia St HILU ST Kalanianaole Hwy Nakini Pl Nakini St Kauholokahiki Pl Kauholokahiki St Poliala St HINALEA ST Maiaeka Pl KAULU ST Kaulukanu St Laumilo St Kalanianaole Hwy Kualau Pl Kumuniu Pl Kumuniu St Lukanela St Nalu St

Join us at Real Estate Social

Comments are closed.