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Paying for a Maui Home - Part 2

Helpful information on the home-buying process.
December 10, 2010

Paying for a Maui Home - Part 2

Wailea Homes for Sale

By Mark Harbison

In our last blog, we went over how to gauge how much Maui home you can afford, and ways to offset your expenses, like renting out a cottage on the property. Here is some more advice.

First of all, don't be scared off by prices on homes that are being advertised. Those prices include the high costs of advertising! Less expensive homes likewise aren't advertised because it isn't cost effective to do so. What you should really do, especially if you have a specific set of criteria in mind, such as a home with three bedrooms and an ohana in Wailea, is try the online Maui real estate search tool on this website. You can get extremely specific, as you'll see. This way you'll easily be able to figure out how much home you can afford with the budget you outlined based on our advice in the previous blog.

So once you've picked out a home that suits your budget and your needs, the next important question is do you want a fifteen-year or a thirty-year mortgage? Lenders prefer the thirty-year obviously, as more interest is generated for them to profit from. Likewise it will cost you much more in the long term, but in the short term, payments will be more manageable. Another factor in this decision is that lenders are more likely to approve a bigger loan for a more expensive property than they are willing to do for a 15-year mortgage.

Monthly payments should be somewhere around .75-1.15% of the purchase price of your new home, with some more potential in variation depending on your unique situation.

Lastly, you should also take closing costs into account. These include survey fees, mortgage application fees, appraisal fees, brokerage commission, etc. These are just a few things you may need to pay for, and you can either take the amount out of your savings (which would reduce the amount you can put into your down payment) or you can apply for a larger mortgage that will cover the closing costs. This is known as "rolling the closing costs".

And that about covers the general points you should keep in mind when buying a new Maui home. (This week, we suggest checking out Wailea Pualani real estate.) Hopefully you will feel more comfortable about the process after familiarizing yourself with these nuggets of information. Naturally there are many more complex questions and issues that can arise in the home-buying process, which can be especially daunting for a first-time home buyer. In any case, you'll find our contact information at the bottom of the page if you should require any assistance.

If you need any help with our website or your pursuit of great Maui real estate, contact us at the information at the bottom of the page. Thanks for reading and have a wonderful weekend!

Blogs for December 2010

Maui Upcountry Storm and Kihei Flood

Posted on December 31, 2010
Maui Upcountry Storm and Kihei Flood

By Mark Harbison

It must have been strange for some Kihei residents to have found themselves knee-deep in water without a drop of rain having fallen there. If you are shopping around for a Kihei home, the recent flooding should serve as a warning that you… Continue Reading

Hana Arts Performs Little Women The Musical

Posted on December 24, 2010
Hana Arts Performs Little Women The Musical

By Mark Harbison

Normally, we recommend that everyone get out to the lush jungles of Hana once in a while, just to enjoy its supreme natural beauty,  although it's all the way on the opposite side of the island from the South Maui homes we… Continue Reading

Kid's Animal Painting After School Class

Posted on December 17, 2010
Kid's Animal Painting After School Class

By Mark Harbison

Barbara Steinberg will be holding a series of after school art classes at the Maui Bridge Center in Kihei for kids aged 5-10 years. These classes will begin on December 29th and will take place between 3-5pm. What kind of art class is… Continue Reading

Paying for a Maui Home - Part 2

Posted on December 10, 2010
Paying for a Maui Home - Part 2

By Mark Harbison

In our last blog, we went over how to gauge how much Maui home you can afford, and ways to offset your expenses, like renting out a cottage on the property. Here is some more advice.

First of all, don't be scared… Continue Reading

Paying for a Maui Home - Part 1

Posted on December 03, 2010
Paying for a Maui Home - Part 1

By Mark Harbison

The economy is slowly recovering from recent lows, but despite spikes in Maui home sales this year, prices remain incredibly affordable. If you are still managing your finances with caution, here are a few tips about purchasing Maui real estate, particularly… Continue Reading

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Mark and Lisa

Mark A Harbison
R(B) (GRI) (CIPS) (TRC)

Mark@RealEstateMauiHawaii.com

(808) 283-3785

Coldwell Banker Island Properties
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