Financing, Valuation, and Closing
Financing
Hawaii mortgage loan originators are licensed under HRS 454F, the state's implementation of the SAFE Act, and licensed through NMLS. Loan estimates and closing disclosures follow federal TRID timing, and ability-to-repay rules govern qualification. Know the basic products - conventional, FHA, VA, USDA - and how points, rate locks, escrow/impound accounts, and mortgage insurance work.
Valuation
Three approaches. Sales comparison: adjust the comparables, then reconcile - never average blindly. Cost: land value plus replacement cost minus depreciation, best for new construction or special-use property. Income: gross rent multiplier or direct capitalization. Highest and best use must be legally permissible, physically possible, financially feasible, and maximally productive. In Hawaii, view, elevation, floor, and fee-simple-versus-leasehold adjustments often dominate the grid.
Closing
Hawaii is an escrow state: a licensed escrow holder (HRS 449) coordinates payoffs, prorations, and recording. Title sits in the Regular System or in Land Court (Torrens), which uses transfer certificates and different recording mechanics; documents are recorded with the Bureau of Conveyances. Seller-side costs typically include the conveyance tax (tiered, plus a county surcharge) and HARPTA withholding - 7.25% of the gross sales price - when the seller is a nonresident; FIRPTA covers foreign sellers.
Traps: pairing leasehold with fee simple comps; using assessed value as market value; miscounting proration days; assuming the buyer pays the conveyance tax.
Rule of thumb: prorate on a 365-day basis and confirm from the contract whether the closing day belongs to buyer or seller before you compute.