Frequently Asked Questions
Do I need to use animal quarantine for my pets?
Hawaii has very strict animal quarantine laws. It is best to get your pets the proper shots and paperwork done well ahead of time. It may shorten the amount of time you pet needs to be in quarantine. Check this link to make sure you are ready in time and find the nearest quarantine center. Animal Quarantine Laws
How soon should I start packing when I move from the mainland?
The best advice is to start separating things at least 8-10 months before the move. You may be amazed by the number of things you will still need to do in the final months of packing.
Are moving companies the only option to ship my things?
Movers are pretty expensive but some do a great job. Don't forget about the option to mail items to yourself. It could take up to 3-4 weeks to get your package but the cost is very low. The US post office will ship packages up 80 lbs. This could allow you to send smaller, heavy items for possibly one-third the cost of a professional mover. There is also media mail for video tapes, CDs, books, etc. This is the least expensive rate for packages so make sure to look in to it. For details take a look at the US Postal Service website.
What is the difference in rainfall around the island?
Many people think that Hilo is constantly under a cloud of rain because it is the rainiest city on the planet but in fact it is sunny most of the time. Usually the rain will come in the late afternoons and evenings to cool things off. Occasionally there is a quick morning shower. The rain will usually stop after 15 minutes but sometimes it could rain for what seems like two weeks straight. Kona does get much less rain and the temperatures are often the warmest in the state.
What can I Afford?
A good rule of thumb to find out what your loan amount you qualify is your yearly gross income multiplied by 2.5. Find the monthly payment for that loan amount on the mortgage calculator. The monthly payments on the loan should be about one-third your gross monthly income. This is not a perfect system, but it is often in the ballpark. The mortgage calculator allows you to input different numbers for the amount and length of the loan, as well as the interest rate. It does not calculate the taxes and insurance, so don't forget to add those. Each lender will give you different quotes so shop around a little and get the bottom line.
Are all of the volcanos on Hawaii active?
No, Mauna Kea and Kohala volcanos are extinct. Hualalai and Mauna Loa are inactive. The only active volcano on the island is Kilauea in Volcanoes National Park. There are areas more dangerous than others. Take a moment to look at the Lava Hazard Zone Map.
Who does Dan Marks represent in a transaction?
Many of you are under the impression that REALTORS always represent the sellers and imply that they are representing you. That may be true in some states but in Hawaii you do have buyer representation by a REALTOR. There have been numerous national news reports that tell you otherwise, and these reports are true for some states in the US but thankfully not in Hawaii.
What will I need to do about my driver's license?
Look at the rules and regulations at the Hawaii D.O.T. In most cases you will need to take a test but not a driving test. You can buy the handbooks at Wal-Mart to study before you take the test. You should get a new license with in 90 days or you could get a ticket.
What is PITI?
This is the total amount of the payment you make to your lender every month.
P= Principal
I= Interest
T= Taxes
I= Insurance
Some lenders will allow you to pay the taxes or insurance on your own. If this is something that is important to you, speak with your lender.
How much down payment do I need?
Many local lenders need as little as 5% down, and some have programs that require only 3% down for first time buyers. There are even some programs with 100% financing for qualified applicants. If you qualify for a VA loan, you may be able to get a loan for 103% of the purchase price of your home. If you are buying your first home and plan to live there for several years, this may be a great option for you.
What is PMI?
PMI stands for Private Mortgage Insurance. This is something avoid if possible. Lenders are only insured by the government up to 80% of the value of a home. If the loan is for more than 80% and goes into default, the lender may loose up to 20%. That is why they want anything you owe above 80% of the value to be insured by a private mortgage insurance company. The cost of this insurance will depend on the size of your down payment. Sometimes the PMI will cost more than your homeowners insurance! That is why a 20% down payment is best if you are able to afford it. If you can come close to 20%, the lender may be able to waive the fee for you with some creative work.
How much do I pay a Realtor when I buy a home?
When a home is listed on the Multiple Listing Service (MLS), there is an existing cooperative agreement between the office representing the seller, and the office representing the buyer. Most Realtors will charge no additional fee to their buyers, if the commission is paid by the seller.
However, some agents are beginning show properties listed as "FSBO" (For Sale By Owner) or homes that have no commission available for the agent. In these cases, the agent needs to have an agreement with the Buyer called an Exclusive Buyer Representation Agreement that allows the Realtor to make sure he/she is going to be paid. Dan Marks will also offer this agreement for those wishing to look at FSBO's and commission free properties (such as many commercial properties).
Is there a question that you have? Send me an email and I will respond to your question and post the answer here for others.
