The Importance of using a local lender when purchasing a property here in Hawaii.
Let me share with you how important it is to use a local lender when purchasing a property here in Hawaii.
Just because a mainland bank is licensed in Hawaii, doesn’t mean they will assist in working through all of the hops and lops that we sometimes encounter in each transaction.
There are lots of lenders on the mainland that are licensed in Hawaii, however, the majority of them are not doing loans here every day.
I will outline the 3 reasons why you should use a local lender when purchasing property in Hawaii:
1. Mainland lenders don’t do business here every day and don’t know the “ins and outs” of our Purchase Contracts, our condominium laws, CPR’s, co-ops, condotels, leasehold property, oceanfront property, and other things found unique to Hawaiii.
2. Mainland lenders can ultimately cost you more $ out of pocket. Although some mainland lenders may offer a decent rate on paper, a Buyer should consider several other factors. One of which is not getting your offer accepted. Most listing (Seller’s) agents have also had bad experiences in the past with mainland lenders and the likelihood of them taking another offer in a bidding war situation increases.
Another situation can be if the mainland lender doesn’t meet their deadlines, the Seller may opt to bump the Buyer out of contract. The third and most scary scenario is when the Seller then holds the Buyer’s feet to the fire and charges them penalties.
3. The loyalty the Buyer has to their mainland bank is not reciprocated. Often times Buyers want to be loyal to their mainland because “that’s who they bank with.” Although generous in thought, that mainland bank does not have the client’s best interest in mind. Local lenders have to earn the trust and loyalty with their borrowers every transaction as it’s their reputation on the line for future business and referrals.
Unfortunately, the mainland banks wont care too much about their reputation here in Hawaii. They will see the transaction as a one time deal, and they know that word wont get around if they messed up.
By any means, you are free to use whatever lender you prefer. But if you ask me, I will always refer you to any of our local lenders 🤙
