Congratulations! You’ve made an offer on a home in Maui, and it’s been accepted. Now, the real work begins as you move toward closing. Understanding the next steps will help you navigate the process with confidence and ensure everything proceeds smoothly.

 

 

This guide will walk you through the key milestones after your offer is accepted, from escrow to closing.

Opening Escrow

Once your offer is accepted, escrow is opened. Escrow is a neutral third-party account where funds and documents are held until all terms of the agreement are met.

What Happens:

  • You’ll deposit your earnest money into the escrow account (typically 1-3% of the purchase price).

  • The escrow officer ensures all parties fulfill their obligations before the sale is finalized.

Maui-Specific Notes:

  • Escrow fees in Hawaii are often split between the buyer and seller.

  • Some Maui properties may require additional escrow considerations, such as leasehold agreements.

The Contingency Period

The contingency period is your opportunity to ensure the property meets your expectations and that financing is secured. Common contingencies include:

  • Inspection Contingency: Schedule a home inspection to identify any issues.

  • Appraisal Contingency: Ensure the property appraises at or above the purchase price.

  • Financing Contingency: Finalize your mortgage approval.

Tips for Success:

  • Act quickly to meet contingency deadlines.

  • Work closely with your real estate agent and lender to resolve any issues that arise.

Completing the Home Inspection

A home inspection is a critical step in confirming the property’s condition. In Maui, inspections often focus on:

  • Salt Air Corrosion: Common in coastal properties.

  • Termite Damage: A frequent issue in Hawaii.

  • Moisture and Water Damage: Caused by Maui’s humid climate.

What Happens:

  • Your inspector provides a detailed report outlining any issues.

  • You can negotiate with the seller for repairs, credits, or price reductions based on the findings.

Finalizing Your Financing

During this phase, your lender will complete the underwriting process to approve your mortgage. This includes verifying your income, assets, and credit history.

Maui-Specific Notes:

  • Jumbo loans are common due to Maui’s high property values. Ensure you meet all lender requirements promptly.

  • Stay in close communication with your lender to address any last-minute documentation requests.

Reviewing the Title Report

The title company will provide a report detailing the property’s ownership history and any liens or encumbrances.

What to Look For:

  • Confirm the property has clear title.

  • Review any restrictions, such as easements or leasehold terms.

Conducting the Final Walkthrough

The final walkthrough typically occurs a few days before closing. This is your chance to ensure the property is in the agreed-upon condition and that any requested repairs have been completed.

What to Check:

  • All agreed-upon repairs are done.

  • Appliances, plumbing, and electrical systems are in working order.

  • No new damage has occurred since your last visit.

Closing Day

Closing day is the final step in the home-buying process. Here’s what to expect:

What Happens:

  • You’ll sign all necessary documents, including the mortgage agreement and deed.

  • Funds will be transferred to the seller.

  • The title is recorded, and you receive the keys to your new home.

Maui-Specific Notes:

  • Closings in Hawaii are often handled via escrow rather than in-person meetings.

  • Be prepared for Hawaii’s unique tax and recording requirements.

Tips for a Smooth Process

  1. Stay Organized: Keep track of deadlines and required documents.

  2. Communicate Regularly: Maintain open communication with your agent, lender, and escrow officer.

  3. Be Flexible: Unexpected issues can arise; stay adaptable to resolve them quickly.

  4. Prepare for Closing Costs: In Maui, closing costs typically range from 2-5% of the purchase price.

Final Thoughts

Making an offer is just the beginning of your journey to homeownership in Maui. By understanding the steps that follow and working closely with your team of professionals, you can navigate the process confidently and secure your dream home in paradise.