Aloha! #Tangeetherealtor coming to you from Hawaii. It is June 04, 2026 on the beautiful island of Oahu. I am reviewing resources for first time homebuyers. In order to be eligible for all of the various and sundry programs that help first time home buyers obtain and maintain a home, many of the programs require education at a HUD (Department of Housing and Urban Development) approved course. As a licensed real estate agent, I have been given the opportunity to audit (sit in on classes for the experience, but not for credit) a course given by the Hawaii Home Ownership Center. I want to share one of the very many pearls of wisdom that stood out because I had never heard something explained quite that way.
PRE-APPROVAL. The pre-approval process is the first step in qualifying for funding to buy a home. The prospective borrower gives the lender all requested financial data from the past two years, and the lender gives the prospective buyer the amount of money said buyer qualifies to borrow. With that number in mind, the buyer can look around with confidence for homes priced within this budget. In all likelihood, if all conditions remain the same, when the time comes for actual approval, the buyer should get the green light. In my experience, many real estate agents do not want to show a property unless the prospective buyer can prove, in writing, that they have the money, or could borrow enough, to cover the listing price.
HERE IS WHAT PEOPLE NEED TO KNOW: the amount of the pre-approval is the maximum the institution is comfortable lending. A buyer may not be comfortable borrowing the maximum. It is probably wise to look at homes that are less than the pre-approved, or maximum loan, amount. Many people in Hawaii pay far more than the recommended 30% of net income on housing. Do not be one of them if at all possible. Buyers would do well to give themselves breathing room.
THE TAKE AWAY
The next hoped-for property purchase does not have to be a dream house or a forever home. The way home prices have risen over the years, once a person owns property, the person can have faith that their situation will probably be greater later. Leave some loan money on the table.
Tanger Lazarus| RS-87870
Coldwell Banker Hawaii
8083674278
tangee.lazarus@cbrealty.com
Tangee Sells Hawaii Homes 