While many people talk about the glitz and glamour of real estate, joining the company of your choice once you past your State Exam can be cumbersome and shocking if you do not know what to do along with knowing what your start up costs will be.

Once you overcome the joy of passing your State Exam its time to find a company to hang your license.  Just remember you must apply for a license within 2 years of passing the examination.  If not, you will be an unsuccessful candidate and be required to retake the examination.

Finding that right company that works for you may take some time.  Here are a few questions you may want to ask.

1. Do you have training for agents that are new?  If so what does it include?
2. What types of systems do you have to help me become successful?
3. Are there any fees I have to pay once I join your company?

What you will find is there are many companies out there and not all will fit your needs.

So you have finally found a company you like and decide to hang your license with them.  Here are some of the costs involved once you join.

Before you can practice real estate an application must be submitted to DCCA for approval.  This can take anywhere from a week to a month.

DCCA license:

$255 if applying in an odd-numbered year

$185 if applying in an even-numbered year.

Any real estate company you join that is members of Hawaii Association of Realtors (HAR) and the Honolulu Board of Realtors (HBR), will require you to become a member.  There are two fees that come with this.

Membership fees to HBR

Multiple Listing Fee more commonly known as MLS

These fees can be upwards of $1000 depending on when you join.

If you want to get yourself up and running other things needed would be Business Cards, Open House Signs, For Sale Signs and Letterhead.  Some companies charge E & O Insurance upfront which may be a significant charge.

Plan on budgeting $1500 to $2500 for start up costs and remember if you are being paid by commission your first check may take 2 to 3 months so having reserves of 6 months is optimal.

While real estate can be lucrative it can also be a drain on time and money.  Make sure you have a path to success and you will be on your way!

Escrow is a third party that assists in the exchange of real property from one person to another.

When a buyer and seller agree on price and terms through a real estate contract escrow is then opened with instructions and a deposit from the buyer.  An escrow officer will manage the transaction and remain an unbiased third party.

Some of their responsibilities include coordinating lender funds, distribution of funds, managing deposits, documents and recording ownership changes.  Other common practices are that the buyer will order title insurance and the escrow officer will obtain a preliminary title report.  The escrow officer will manage the contract's contingencies and coordinate for services that include: flood insurance, home insurance, inspections, financing and repairs.

It's helpful to have an experienced escrow officer managed so many of the complexities in a transaction and remain unbiased. The National Association of Realtors has a great article that elaborates on escrows.

Here are 4 steps you need to follow to be successful in bidding on homes at auction.


1. Arrive 30 minutes before the auction.  This will give you an advantage in scoping out the competition.  Sometimes you can get important information that was not available previously.  Most importantly you won't be stressed by arriving late and having the wrong mindset when bidding.

2. Don't be psyched out if the group is large.  Many times there are people just looking or have come from an investment seminar and are learning the ropes.  Trust in your research and stick to your pre-planned strategy.

3. Have cashier checks in hand.  You must have cash on hand to bid.  A tip is to break these down into smaller checks so that you don't have to leave the whole amount upon winning the successful bid.  Increments of $5000 to $10,000 work well.

4. Be careful you are not bidding on a jr lien.  This has sunk many experienced investors by assuming they were bidding for a 1st trust deed or mortgage.  Take care and confirm your facts.

An important aspect of dealing with real estate is how the new owner will take ownership of the property.  Although states may differ, there are generally 4 underlying ways that a property owner will take title.

Tenancy in severalty: Severalty mean a condition of being separate.  This gets a lot of people confused because of our use of the word several which would indicate more than two.  You will see this type of ownership held by an individual or corporation.

Tenancy in common: This type of ownership allows for both equal and unequal ownership between multiple parties.  If an owner passes away their ownership interest is conveyed to their heirs.

Joint tenancy:  There are four unities that must exist for joint tenancy which are interest, possession, time and title.  Unlike Tenancy in common, joint tenancy has each owner holding the same (interest).  They share in an undivided interest (possession) and they receive their interest at the same time (time).  Title will require that owners acquire their interest with the same deed (title).

If an owner passes away their interest reverts to the other owners called the right of survivorship.

Tenancy by the entirety:  Ownership allowed for married couples.  The right of survivorship exists and in some states additional privileges can be merited such as better asset protection. 

A career in real estate can provide the flexibility and earning potential that many self-motivated people desire.  Taking the first steps in a real estate career are relatively easy:

1. Sign up for a pre-licensing class
2. Complete pre-licensing curriculum
   
3. Take the state license exam
   
4. Find a real estate brokerage with training and mentorship
   

Step 1 is easy and requires only a modest fee to enroll.  

Step 2 can be more challenging as it requires effective time management.  As with a career in real estate, you must be self-motivated to complete your studies.

Step 3 is heavily dependent on how effectively step 2 was followed.  Regardless of your initial results, the saying "Try and try again" applies here.  You man retake your licensing exam multiple times until you achieve a passing grade.

Step 4 many times possess the greatest challenge.  Although it is easy to find a brokerage, it is less obvious how significant making the wrong choice will impact your career.  Unfortunately, many brokerages have resorted to enticing new licensees with high commission splits because it is easy.  In reality, the hope for quick commissions and the lack of training will result in significantly lower career earning.  It is critical to find a company that provides regular training, a team environment and technology that can propel you along your new career path.

School Certification –If you are considering pursuing your real estate career, first thing is to find if Hawaii Real Estate School is an approved school by Hawaii DCCA Real Estate Commission. Why? Certification means the school operates on a sound financial basis, has an approved study program, has qualified instructors, approved recruitment and admissions policies and advertises its courses in a factual manner. Certification is your assurance that the course you're taking will lead to a viable certificate or diploma which allow you to take State Exam with PSI.

With Inet Realty School of Real Estate, you're never alone during your studies. If you don't understand the escrow process or any other real estate relevant questions, you can always contact any of the instructors or Inet Realty experienced Brokers and Realtors to discuss at any time.

INET REALTY

1750 S KING ST STE 100

HONOLULU HI 96826

(808) 955-7653

info@inetoc.com

www.inetrealtyinc.com

SCHOOL CODE (LIVE):

001175

Many times you will hear someone ask this question in Hawaii real estate….     How much notice does the landlord need to give to the tenant.  It is 2 days.  You need to also remember there are several types of leases. 

First there is a tenancy for years which is a lease with a beginning and ending date.  Normally no notice is required because the terms are spelled out in the lease.

Secondly, there is the tenancy for periods.  This is usually a lease for a period of time like a day (hotel), a week (rooming house) or a month, which is most often called a month to month and is the most common form of tenancy for periods.  Because the lease renews each period unless it is changed.  In other words, we have to decide how many days notice should be required to increase the rent for example, or decide on how many days notice are required to respond to an emergency repair.  This is all provided in HRS 521, (click here for link) which is the Tenant Landlord Code.

Another frequently asked question regarding Hawaii real estate management is:  How much notice does the landlord need to give to enter the apartment or unit; respond to an emergency repair; demand payment for rent; cure a default in the lease; respond to regular repair; abandoning the apartment; intent to raise the rent and last, notice by the tenant of their intent to move out.

A landlord needs to give 2 days notice to enter an apartment. 
Respond to an emergency repair, 3 days notice is required .
Demand payment of rent, 5 days.
Cure a default in the lease, 10 days
Respond to a regular repair – 12 days
Abandoning the apartment – 20 days
Intent to raise the rent – 45 days
Notice by the tenant of their intent to move out – 28 days

When taking the state test for your Hawaii Real Estate License – these types of questions will be asked.

If you are interested in taking a Prelicense Class to get your certificate to sit for the State License you can go to:   HawaiiRealEstateSchools.com.  They have a 4 week accelerated class.

One of the most important parts of the class that should be studied as many of the questions on the exam will come from this is Chapter 7 – Hawaii License Laws.  In Particular HRS Chapter 467 that deals with the Department of Commerce and Consumer Affairs (DCCA) and Real Estate Commission (REC).

For a more in depth look you can click on the following link.

http://hawaii.gov/dcca/pvl/hrs/hrs_pvl_467.pdf

  When taking the Hawaii Real Estate Licensee exam, one of the best tricks in passing your test is to study the glossary. Having mastery over real estate vocabulary and terms will give you a huge advantage when taking your test.

For example, if you are asked a question about where the word alluvium is used, it might become difficult to answer it if you don't know what that word means.

al·lu·vi·um

a deposit of clay, silt, sand, and gravel left by flowing streams in a river valley or delta, typically producing fertile soil.

Here's a list to get your started:

acceleration clause A clause in your mortgage which allows the lender to demand payment of the outstanding loan balance for various reasons. The most common reasons for accelerating a loan are if the borrower defaults on the loan or transfers title to another individual without informing the lender.

adjustable-rate mortgage (ARM) A mortgage in which the interest changes periodically, according to corresponding fluctuations in an index. All ARMs are tied to indexes.

adjustment date The date the interest rate changes on an adjustable-rate mortgage.

amortization The loan payment consists of a portion which will be applied to pay the accruing interest on a loan, with the remainder being applied to the principal. Over time, the interest portion decreases as the loan balance decreases, and the amount applied to principal increases so that the loan is paid off (amortized) in the specified time.

amortization schedule A table which shows how much of each payment will be applied toward principal and how much toward interest over the life of the loan. It also shows the gradual decrease of the loan balance until it reaches zero.

annual percentage rate (APR) This is not the note rate on your loan. It is a value created according to a government formula intended to reflect the true annual cost of borrowing, expressed as a percentage. It works sort of like this, but not exactly, so only use this as a guideline: deduct the closing costs from your loan amount, then using your actual loan payment, calculate what the interest rate would be on this amount instead of your actual loan amount. You will come up with a number close to the APR. Because you are using the same payment on a smaller amount, the APR is always higher than the actual note rate on your loan.

application The form used to apply for a mortgage loan, containing information about a borrower's income, savings, assets, debts, and more.

appraisal A written justification of the price paid for a property, primarily based on an analysis of comparable sales of similar homes nearby.

appraised value An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property. Since an appraisal is based primarily on comparable sales, and the most recent sale is the one on the property in question, the appraisal usually comes out at the purchase price.

appraiser An individual qualified by education, training, and experience to estimate the value of real property and personal property. Although some appraisers work directly for mortgage lenders, most are independent.

appreciation The increase in the value of a property due to changes in market conditions, inflation, or other causes.

assessed value The valuation placed on property by a public tax assessor for purposes of taxation.

assessment The placing of a value on property for the purpose of taxation.

assessor A public official who establishes the value of a property for taxation purposes.

asset Items of value owned by an individual. Assets that can be quickly converted into cash are considered "liquid assets." These include bank accounts, stocks, bonds, mutual funds, and so on. Other assets include real estate, personal property, and debts owed to an individual by others.

assignment When ownership of your mortgage is transferred from one company or individual to another, it is called an assignment.

assumable mortgage A mortgage that can be assumed by the buyer when a home is sold. Usually, the borrower must "qualify" in order to assume the loan.

assumption The term applied when a buyer assumes the seller's mortgage.

balloon mortgage A mortgage loan that requires the remaining principal balance be paid at a specific point in time. For example, a loan may be amortized as if it would be paid over a thirty year period, but requires that at the end of the tenth year the entire remaining balance must be paid.

balloon payment The final lump sum payment that is due at the termination of a balloon mortgage.

bankruptcy By filing in federal bankruptcy court, an individual or individuals can restructure or relieve themselves of debts and liabilities. Bankruptcies are of various types, but the most common for an individual seem to be a "Chapter 7 No Asset" bankruptcy which relieves the borrower of most types of debts. A borrower cannot usually qualify for an "A" paper loan for a period of two years after the bankruptcy has been discharged and requires the re-establishment of an ability to repay debt.

bill of sale A written document that transfers title to personal property. For example, when selling an automobile to acquire funds which will be used as a source of down payment or for closing costs, the lender will usually require the bill of sale (in addition to other items) to help document this source of funds.

biweekly mortgage A mortgage in which you make payments every two weeks instead of once a month. The basic result is that instead of making twelve monthly payments during the year, you make thirteen. The extra payment reduces the principal, substantially reducing the time it takes to pay off a thirty year mortgage.

bond market Usually refers to the daily buying and selling of thirty year treasury bonds. Lenders follow this market intensely because as the yields of bonds go up and down, fixed rate mortgages do approximately the same thing. The same factors that affect the Treasury Bond market also affect mortgage rates at the same time. That is why rates change daily, and in a volatile market can and do change during the day as well.

bridge loan Not used much anymore, bridge loans are obtained by those who have not yet sold their previous property, but must close on a purchase property. The bridge loan becomes the source of their funds for the down payment. One reason for their fall from favor is that there are more and more second mortgage lenders now that will lend at a high loan to value. In addition, sellers often prefer to accept offers from buyers who have already sold their property.

broker Broker has several meanings in different situations. Most Realtors are "agents" who work under a "broker." Some agents are brokers as well, either working form themselves or under another broker. In the mortgage industry, broker usually refers to a company or individual that does not lend the money for the loans themselves, but broker loans to larger lenders or investors. (See the Home Loan Library that discusses the different types of lenders). As a normal definition, a broker is anyone who acts as an agent, bringing two parties together for any type of transaction and earns a fee for doing so.

buydown Usually refers to a fixed rate mortgage where the interest rate is "bought down" for a temporary period, usually one to three years. After that time and for the remainder of the term, the borrower's payment is calculated at the note rate. In order to buy down the initial rate for the temporary payment, a lump sum is paid and held in an account used to supplement the borrower's monthly payment. These funds usually come from the seller (or some other source) as a financial incentive to induce someone to buy their property. A "lender funded buydown" is when the lender pays the initial lump sum. They can accomplish this because the note rate on the loan (after the buydown adjustments) will be higher than the current market rate. One reason for doing this is because the borrower may get to "qualify" at the start rate and can qualify for a higher loan amount. Another reason is that a borrower may expect his earnings to go up substantially in the near future, but wants a lower payment right now.

call option Similar to the acceleration clause.

cap Adjustable Rate Mortgages have fluctuating interest rates, but those fluctuations are usually limited to a certain amount. Those limitations may apply to how much the loan may adjust over a six month period, an annual period, and over the life of the loan, and are referred to as "caps." Some ARMs, although they may have a life cap, allow the interest rate to fluctuate freely, but require a certain minimum payment which can change once a year. There is a limit on how much that payment can change each year, and that limit is also referred to as a cap.

cash-out refinance When a borrower refinances his mortgage at a higher amount than the current loan balance with the intention of pulling out money for personal use, it is referred to as a "cash out refinance." 

certificate of deposit A time deposit held in a bank which pays a certain amount of interest to the depositor.

certificate of deposit index One of the indexes used for determining interest rate changes on some adjustable rate mortgages. It is an average of what banks are paying on certificates of deposit. 

Certificate of Eligibility A document issued by the Veterans Administration that certifies a veteran's eligibility for a VA loan.

Certificate of Reasonable Value (CRV) Once the appraisal has been performed on a property being bought with a VA loan, the Veterans Administration issues a CRV.

chain of title An analysis of the transfers of title to a piece of property over the years.

clear title A title that is free of liens or legal questions as to ownership of the property.

closing This has different meanings in different states. In some states a real estate transaction is not consider "closed" until the documents record at the local recorders office. In others, the "closing" is a meeting where all of the documents are signed and money changes hands.

closing costs Closing costs are separated into what are called "non-recurring closing costs" and "pre-paid items." Non-recurring closing costs are any items which are paid just once as a result of buying the property or obtaining a loan. "Pre-paids" are items which recur over time, such as property taxes and homeowners insurance. A lender makes an attempt to estimate the amount of non-recurring closing costs and prepaid items on the Good Faith Estimate which they must issue to the borrower within three days of receiving a home loan application.

closing statement See Settlement Statement.

cloud on title Any conditions revealed by a title search that adversely affect the title to real estate. Usually clouds on title cannot be removed except by deed, release, or court action.

co-borrower IAn additional individual who is both obligated on the loan and is on title to the property.

collateral In a home loan, the property is the collateral. The borrower risks losing the property if the loan is not repaid according to the terms of the mortgage or deed of trust.

collection When a borrower falls behind, the lender contacts them in an effort to bring the loan current. The loan goes to "collection." As part of the collection effort, the lender must mail and record certain documents in case they are eventually required to foreclose on the property.

commission Most salespeople earn commissions for the work that they do and there are many sales professionals involved in each transaction, including Realtors, loan officers, title representatives, attorneys, escrow representative, and representatives for pest companies, home warranty companies, home inspection companies, insurance agents, and more. The commissions are paid out of the charges paid by the seller or buyer in the purchase transaction. Realtors generally earn the largest commissions, followed by lenders, then the others.

common area assessments In some areas they are called Homeowners Association Fees. They are charges paid to the Homeowners Association by the owners of the individual units in a condominium or planned unit development (PUD) and are generally used to maintain the property and common areas.

common areas Those portions of a building, land, and amenities owned (or managed) by a planned unit development (PUD) or condominium project's homeowners' association (or a cooperative project's cooperative corporation) that are used by all of the unit owners, who share in the common expenses of their operation and maintenance. Common areas include swimming pools, tennis courts, and other recreational facilities, as well as common corridors of buildings, parking areas, means of ingress and egress, etc.

common law An unwritten body of law based on general custom in England and used to an extent in some states.

community property In some states, especially the southwest, property acquired by a married couple during their marriage is considered to be owned jointly, except under special circumstances. This is an outgrowth of the Spanish and Mexican heritage of the area.

comparable sales Recent sales of similar properties in nearby areas and used to help determine the market value of a property. Also referred to as "comps."

condominium A type of ownership in real property where all of the owners own the property, common areas and buildings together, with the exception of the interior of the unit to which they have title. Often mistakenly referred to as a type of construction or development, it actually refers to the type of ownership.

condominium conversion Changing the ownership of an existing building (usually a rental project) to the condominium form of ownership.

condominium hotel A condominium project that has rental or registration desks, short-term occupancy, food and telephone services, and daily cleaning services and that is operated as a commercial hotel even though the units are individually owned. These are often found in resort areas like Hawaii.

construction loan A short-term, interim loan for financing the cost of construction. The lender makes payments to the builder at periodic intervals as the work progresses.

contingency A condition that must be met before a contract is legally binding. For example, home purchasers often include a contingency that specifies that the contract is not binding until the purchaser obtains a satisfactory home inspection report from a qualified home inspector.

contract An oral or written agreement to do or not to do a certain thing.

conventional mortgage Refers to home loans other than government loans (VA and FHA).

convertible ARM An adjustable-rate mortgage that allows the borrower to change the ARM to a fixed-rate mortgage within a specific time.

cooperative (co-op) A type of multiple ownership in which the residents of a multiunit housing complex own shares in the cooperative corporation that owns the property, giving each resident the right to occupy a specific apartment or unit.

cost of funds index (COFI) One of the indexes that is used to determine interest rate changes for certain adjustable-rate mortgages. It represents the weighted-average cost of savings, borrowings, and advances of the financial institutions such as banks and savings & loans, in the 11th District of the Federal Home Loan Bank.

credit An agreement in which a borrower receives something of value in exchange for a promise to repay the lender at a later date. 

credit history A record of an individual's repayment of debt. Credit histories are reviewed my mortgage lenders as one of the underwriting criteria in determining credit risk.

creditor A person to whom money is owed.

credit report A report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness.

credit repository An organization that gathers, records, updates, and stores financial and public records information about the payment records of individuals who are being considered for credit.

debt An amount owed to another.

deed The legal document conveying title to a property.

deed-in-lieu Short for "deed in lieu of foreclosure," this conveys title to the lender when the borrower is in default and wants to avoid foreclosure. The lender may or may not cease foreclosure activities if a borrower asks to provide a deed-in-lieu. Regardless of whether the lender accepts the deed-in-lieu, the avoidance and non-repayment of debt will most likely show on a credit history. What a deed-in-lieu may prevent is having the documents preparatory to a foreclosure being recorded and become a matter of public record.

deed of trust Some states, like California, do not record mortgages. Instead, they record a deed of trust which is essentially the same thing.

default Failure to make the mortgage payment within a specified period of time. For first mortgages or first trust deeds, if a payment has still not been made within 30 days of the due date, the loan is considered to be in default.

delinquency Failure to make mortgage payments when mortgage payments are due. For most mortgages, payments are due on the first day of the month. Even though they may not charge a "late fee" for a number of days, the payment is still considered to be late and the loan delinquent. When a loan payment is more than 30 days late, most lenders report the late payment to one or more credit bureaus.

deposit A sum of money given in advance of a larger amount being expected in the future. Often called in real estate as an "earnest money deposit."

depreciation A decline in the value of property; the opposite of appreciation. Depreciation is also an accounting term which shows the declining monetary value of an asset and is used as an expense to reduce taxable income. Since this is not a true expense where money is actually paid, lenders will add back depreciation expense for self-employed borrowers and count it as income.

discount points In the mortgage industry, this term is usually used in only in reference to government loans, meaning FHA and VA loans. Discount points refer to any "points" paid in addition to the one percent loan origination fee. A "point" is one percent of the loan amount.

down payment The part of the purchase price of a property that the buyer pays in cash and does not finance with a mortgage.

due-on-sale provision A provision in a mortgage that allows the lender to demand repayment in full if the borrower sells the property that serves as security for the mortgage.

earnest money deposit A deposit made by the potential home buyer to show that he or she is serious about buying the house.

easement A right of way giving persons other than the owner access to or over a property.

effective age An appraiser's estimate of the physical condition of a building. The actual age of a building may be shorter or longer than its effective age.

eminent domain The right of a government to take private property for public use upon payment of its fair market value. Eminent domain is the basis for condemnation proceedings.

encroachment An improvement that intrudes illegally on another's property.

encumbrance Anything that affects or limits the fee simple title to a property, such as mortgages, leases, easements, or restrictions.

Equal Credit Opportunity Act (ECOA) A federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of income from public assistance programs.

equity A homeowner's financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on its mortgage and other liens.

escrow An item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of a condition. For example, the earnest money deposit is put into escrow until delivered to the seller when the transaction is closed.

escrow account Once you close your purchase transaction, you may have an escrow account or impound account with your lender. This means the amount you pay each month includes an amount above what would be required if you were only paying your principal and interest. The extra money is held in your impound account (escrow account) for the payment of items like property taxes and homeowner's insurance when they come due. The lender pays them with your money instead of you paying them yourself.

escrow analysis Once each year your lender will perform an "escrow analysis" to make sure they are collecting the correct amount of money for the anticipated expenditures.

escrow disbursements The use of escrow funds to pay real estate taxes, hazard insurance, mortgage insurance, and other property expenses as they become due.

estate The ownership interest of an individual in real property. The sum total of all the real property and personal property owned by an individual at time of death.

eviction The lawful expulsion of an occupant from real property.

examination of title The report on the title of a property from the public records or an abstract of the title.

exclusive listing A written contract that gives a licensed real estate agent the exclusive right to sell a pro
med. "Executrix" is the feminine form. 

Fair Credit Reporting Act A consumer protection law that regulates the disclosure of consumer credit reports by consumer/credit reporting agencies and establishes procedures for correcting mistakes on one's credit record.

fair market value The highest price that a buyer, willing but not compelled to buy, would pay, and the lowest a seller, willing but not compelled to sell, would accept.

Fannie Mae (FNMA) The Federal National Mortgage Association, which is a congressionally chartered, shareholder-owned company that is the nation's largest supplier of home mortgage funds. For a discussion of the roles of Fannie Mae, Freddie Mac (FHLMC), and Ginnie Mae (GNMA), see the Library.

Fannie Mae's Community Home Buyer's Program An income-based community lending model, under which mortgage insurers and Fannie Mae offer flexible underwriting guidelines to increase a low- or moderate-income family's buying power and to decrease the total amount of cash needed to purchase a home. Borrowers who participate in this model are required to attend pre-purchase home-buyer education sessions.

Federal Housing Administration (FHA) An agency of the U.S. Department of Housing and Urban Development (HUD). Its main activity is the insuring of residential mortgage loans made by private lenders. The FHA sets standards for construction and underwriting but does not lend money or plan or construct housing. 

fee simple The greatest possible interest a person can have in real estate.

fee simple estate An unconditional, unlimited estate of inheritance that represents the greatest estate and most extensive interest in land that can be enjoyed. It is of perpetual duration. When the real estate is in a condominium project, the unit owner is the exclusive owner only of the air space within his or her portion of the building (the unit) and is an owner in common with respect to the land and other common portions of the property.

FHA mortgage A mortgage that is insured by the Federal Housing Administration (FHA). Along with VA loans, an FHA loan will often be referred to as a government loan.

first mortgage The mortgage that is in first place among any loans recorded against a property. Usually refers to the date in which loans are recorded, but there are exceptions.

fixed-rate mortgage A mortgage in which the interest rate does not change during the entire term of the loan.

fixture Personal property that becomes real property when attached in a permanent manner to real estate.

flood insurance Insurance that compensates for physical property damage resulting from flooding. It is required for properties located in federally designated flood areas.

foreclosure The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt.

401(k)/403(b) An employer-sponsored investment plan that allows individuals to set aside tax-deferred income for retirement or emergency purposes. 401(k) plans are provided by employers that are private corporations. 403(b) plans are provided by employers that are not for profit organizations.

401(k)/403(b) loan Some administrators of 401(k)/403(b) plans allow for loans against the monies you have accumulated in these plans. Loans against 401K plans are an acceptable source of down payment for most types of loans.

government loan (mortgage) A mortgage that is insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) or the Rural Housing Service (RHS). Mortgages that are not government loans are classified as conventional loans.

Government National Mortgage Association (Ginnie Mae) A government-owned corporation within the U.S. Department of Housing and Urban Development (HUD). Created by Congress on September 1, 1968, GNMA performs the same role as Fannie Mae and Freddie Mac in providing funds to lenders for making home loans. The difference is that Ginnie Mae provides funds for government loans (FHA and VA)

grantee The person to whom an interest in real property is conveyed.

grantor The person conveying an interest in real property.

There are many choices in deciding what schools to pick from.  And when searching for the right Hawaii real estate schools you want to consider the following criteria:






1. Experience of the instructor.
2. Class environment.
3. Success of students passing the state exam.
4. What career opportunities can be found after obtaining your license.
5. Know if the real estate schools fit your personal schedule.
6. Decide if you would rather have an instructor lead class or online.

If interested in online classes take a look at Online Real Estate Classes.