Tricia Morris, President, Premiere Mortgage

Some simple steps to help you procure a loan.

Na Hale O Maui is the community land trust that seeks to create housing that remains affordable in perpetuity. The organization holds homebuyer education classes for families who wish to prepare financially for home ownership. Their focus is helping families get ready to get a loan and buy a home.

They recommend a few steps to potential homebuyers. Many of these steps are similar to the topics you should discuss during a visit with your professional mortgage broker when seeking to become pre-qualified or pre-approved for a loan amount.

Cash:

• Open a savings account and save regularly. “Pay yourself first” is a good motto to follow. Use a payroll deduction if you can.
• Put “mattress money” in the bank. It doesn’t count if it isn’t on paper.
• If possible, cash from side jobs should go in the bank as well.
• Talk to your family about gifting money to you. They will have to provide a bank statement.
• Sell anything you don’t need and bank the cash.
• Keep bank statements for at least 12 months.

Credit:

• Pay bills on time. A clean payment record is vital to a good credit report.
• Review your credit report at least annually. The credit bureaus must give you a free credit report every year by law.
• Work on any incorrect information on the report. Settle any outstanding collection accounts.
• If you have to carry a balance on your credit card, keep the balance to no more than 30 to 50 percent of the credit limit.
• Pay off what you can. Focus on bills that have the highest interest and biggest minimum monthly payment.
• Don’t take on new credit for new cars, furniture, appliances, a big screen TV…
• Pay your bills with a check or automatic withdrawal including utilities. No cash payments.
• If you have a recent bankruptcy, pay on time every time. Establish new credit after the bankruptcy discharge date.

Income:

• If you have to switch from your main job, stay in the same line of work. Lenders look for stable employment.
• If you have a second job, try to stay with it. Lenders count second jobs if you’ve been there at least two years.
• The self-employed should have separate business and personal bank accounts. Pay business bills from business accounts.
• Save tax returns and W2s for the last two years and paystubs for the last 60 days.

For more information on how to attend a homeowner education class, contact Na Hale O Maui at 244-6110 or email info@nahaleomaui.org.

Premiere Mortgage has offices on Maui and Kaua‘i and provides a wide range of services to the real estate community. Tricia Morris may be reached on Maui, in Kihei, at 874-8800, Wailea, at 891-8900, West Maui at 665-8800, on Kaua‘i at (808) 822-2300, or toll-free at (800) 813-7711.