Florida Mortgage : Learning Center

The right questions are crucial in today’s FL mortgage arena.  First time home buyers as well as seasoned investors have learned that it’s not all about interest rate when shopping for their next FL mortgage.  There’s a bigger question.

First, shop for a low interest rate specific to the mortgage type you are seeking.  If you are not sure which mortgage best suits your financial situation, then ask an experienced FL Mortgage Professional.  Once you have a low rate in mind, ask about obtaining an upfront good faith estimate of costs.  Only with an upfront estimate can you compare interest rate and cost associated to obtain that rate.  Some television ads promote, for example, today’s current 30 yr fixed rate at 4.375% – which is wonderful.  Until you read the fine print (you’ll have to freeze the frame as it disappears faster than the interest rate offered).  You learn the rate will cost 2 full discount points (or 2% of the amount borrowed).  Pretty expensive.  And what about recovery periods?  Closing costs matter when comparing rates – Get in in writing!

Next, and the most important question; ask about closing time-lines.  If you have a home contract that requires you to close within 30 days – make sure the lender or bank you are working with can meet that scheduled closing.  If you don’t feel confident this can be accomplished, find another lender.   Call, 321.987.9876 or email and we will put you in the right hands of a FL mortgage lender that continues to close FHA, and Fannie Mae conventional loans under 30-days. 

Remember, ask about interest rate, get cost estimate in writing and know their turnaround times to close.  It matters.

Fannie Mae’s Homepath mortgage program is not limited to just first time home buyers.  Seasoned investors looking to pick up a very low priced FL rental property can take advantage; as well as, FL vacation home or 2nd home buyers.  The Homepath FL mortgage loan may just pave the way – consider the following benefits: 

• Finance your next FL home without having to pay for an appraisal!  With the HomePath mortgage, appraisals not required.  Keep in mind, you can obtain your own, independent appraisal – for piece of mind.
• Down payments can be as low as 3% for owner occupied homes and 10% for vacation or 2nd homes and investment properties.
• Enjoy lower monthly payments, as there is no PMI (private mortgage insurance) requirement. 
• And with sellers contributing up to 6% towards closing costs for primary and second homes; or up to 2% for investment properties; FL home buyers continue to save.

 If you’re looking for a local Fannie Mae Homepath Realtor or to find out if you qualify for a Homepath mortgage loan; call 321-987-9876 or email info@beechtreemortgage.com.

The home buyer tax credit is history for many FL home buyers still searching for their first or next FL home.  We were all hoping for some sort of extension which never came.  That is, unless you are a qualified US Veteran serving overseas.

Members of our US armed forces as well as number of Federal employees on official extended duty (any period of extended duty outside of the US, for at least 90 days, between the periods starting December 31st, 2008 and ending May 30th, 2010) have an extra 12 months to purchase their next FL home and still qualify for the $8,000 tax credit that has expired for others.

The extension allows Veterans or qualified Federal employees to secure a binding contract on or before April 30th, 2011 and close on their new FL home by June 20th, 2011.  Veterans do enjoy advantages when using their VA Entitlement towards a FL VA home loan.  But keep in mind, other mortgage programs available include; FHA home loans, VA Jumbo loans, Fannie Mae conventional programs, etc.

Searching  for a great deal on your first or next FL home mortgage?  How about buying your next home with less than is required for an FHA mortgage and without the need for any PMI, private mortgage insurance?  Less You need to consider buying your next home from those listed on the HomePath website at www.homepath.com.

Fannie Mae wants to unload these homes without having FL home buyers incurring usual hassles like appraisal inspections- because appraisals are not even required.  Also, there is no qualifying for PMI (with respect to credit scores) as with most conventional loans; or paying an upfront mortgage insurance premium and monthly PMI, as associated with FL FHA mortgages.  In fact, there is no mortgage insurance, at all. 

Thinking about purchasing  a second home or even an investment property?  Go ahead.  Guidelines allow for down payments for primary homes as little as 3%; second homes or FL vacation homes require only require a 10% down payment.  Even investment properties can be obtained with a 10% down payment and no private mortgage insurance.  What a deal!

Lest we forget – while negotiating the contract price with your favorite FL Realtor, remember Sellers can contribute up to 6% for primary homes with only a 3% down payment.  For down payments of 25%, second home and primary home purchase can have contributions of up to 9%!  Structuring the initial contract is very important because you can save thousands in out-of-pocket expenses and/or long term mortgage interest costs.

Whether searching in Brevard County, Seminole County, Orange County or almost any other FL County; more information on your next FL home may be available right now by contacting your FL mortgage professionalor visiting HomePath.

One of the most popular FL mortgage programs happens to be one of the best ways to buy a FL home with the least amount of down payments and less hassle.  Whether you are a FL first time home buyer; searching for a second home or vacation home; or want to pick up a great investment or FL rental home – Fannie Mae’s HomePath Mortgage has it’s advantages.   

• Imagine being able to finance your next FL home without having to have an appraisal!  With the HomePath mortgage, not only are appraisals not required; there are no declining market policy restrictions.  Keep in mind, you can obtain your own, independent appraisal – just for piece of mind.
• Down payments can be as low as 3% for primary residences and 10% for second homes / investment properties.
• All this and nomonthly, PMI, private mortgage insurance!  Sort of like getting a FL VA home loan without being a Veteran.
• Sellers can contribute up to 6% towards closing costs for primary and second homes; and up to 2% for investment properties.

For more information on the HomePath Program visit www.homepath.com.  While there, search for the home of your dreams and then contact or call me directly at 407-733-6425.  Let’s  make sure you are qualified for this very popular FL mortgage  loan.

Starting January 1st, 2010, Realtors, Title Companies and Mortgage Professionals are going to engage in entirely new procedures with their first time home buyer clients.  We are not only going to experience new mortgage Good Faith Estimate formats and final HUD-1 Settlement Statements; but the way we do business will shift entirely. The revised requirements, compliments of new RESPA rules for 2010, will change  the way FL Realtors, first time home buyers and their FL Mortgage Professionals function.  Our mortgage industry is about to change dramatically.  Are you ready for January 1st?

Here is a just one example of change to come.  We are all used to getting “pre-approved” for that new home and perhaps even receiving an upfront Good Faith Estimate all while searching for that new dream home.  Starting January 1st, Good Faith Estimates cannot be provided unless you have a complete mortgage application.  A complete application is not an application unless there is a property address recognized.  So much for pre-approvals while searching for that dream home.

We will start seeing more pre-qualifications and Good Faith Estimates that are for illustration purposes only.  Without a property address home buyers get practically nothing.  Realtors and home buyers are going to have to depend on experienced FL Mortgage Professionals with specific knowledge of current FHA, VA and conventional  mortgage programs. 

Change is good; and in just a few days the mortgage arena will change and how a first time buyer shops for their new home will never be the same.  Fun times – for Mortgage Professionals who always disclose everything upfront to their home buying clients.

Aimed at providing clearer upfront mortgage disclosure with easily comparable standardized Good Faith Estimates;  the RESPA 2010 rules begin January 1st.  One of the enhancements is enforcing quoted lender or bank fees, with a “no tolerance” rule.  That is, once you have received your Good Faith Estimate, the mortgage lender or banks charged fees cannot be changed; period.

This is tough news for those mortgage knuckleheads who were ambiguous with changing initial quoted interest rates and/ or adding additional discount points and other miscellaneous mortgage fees at closing.  You know, the ones who preyed on first time buyers who perhaps didn’t know that changing the mortgage terms at closing violated laws already written. 

For career minded and experienced Mortgage Professionals, however, the new RESPA changes are welcomed.  Disclosing upfront closing costs and delivering the same at closing is par for the course.  It’s interesting that the entire Good Faith Estimate had to be reinvented with tolerance laws when we could have simply enforced laws already in place.  Besides, these new RESPA changes are about 5 years late and most of the rogue rip-off mortgage bankers and brokers have left the industry.

2010 is destined to be a great year for those who have survived the FL mortgage market.  Let’s embrace the RESPA changes which are simply trying to put first time home buyers in a better position, and saving them money, while shopping for their new mortgage.

When a first time home buyer chooses a Realtor and begins the search for their new dream home; most are hoping to keep as much of their savings to furnish or spruce up their home.  There are a few mortgage programs with low down payment requirements, and scenario considerations as follows.

The best mortgage program available with no down payment requirement, is a VA home loan.  Our hero Veterans  may qualify for their first home without the need of any down payment.  In fact, the seller can even contribute up to 4% towards the Veterans closing costs and prepaid interest, property taxes and homeowners insurance.  With little or no out of pocket expense, Veterans can keep more of their savings and earn interest instead of paying interest.

Another practical first time home buyer program is the use of an FHA mortgage loan.  FHA mortgages allow first time buyers to put as little as 3.5% towards a down payment.  Keep in mind, HUD is considering changing the 3.5% to 5% soon – so get your Realtor and call your FL Mortgage Professional to secure a contract soon.  Also, sellers can contribute up to 6% towards the buyers closing costs, prepaid interest, property taxes and homeowners insurance.  At a loan-to-value of 96.5%, FHA has proven to be the most popular mortgage loan of first time home buyers.

Although there are more  mortgage programs with little or no down payments; the VA home loan and FHA mortgage loan seem to serve first time buyers the best.  For more information on these mortgage loans and more please contact your favorite FL Mortgage Professional.

When shopping online for a new FL mortgage to purchase your next home or to refinance a current mortgage; many FL Mortgage Professionals recommend the following safeguards to protect your best interest.

• Work with a FL Mortgage Professional who will provide upfront Good Faith Estimates.  If they won’t put it in writing – call someone else.
• How experienced is your Loan Officer?  Experience will not only save you time and money; you’ll find the mortgage loan that suits you best.
• Comparing low interest rates is only important if you are comparing closing costs side-by-side.
• Thinking about refinancing?  Ask about long term interest savings and recovery periods.  Your experienced Mortgage Loan Officers will assist as these are imperative when refinancing.
• Don’t think you are locked into an interest rate until you receive an interest rate lock-in agreement in writing.  Ask for it – and read the details (lock in period, rate, etc.)

Whether you are working with a large bank, a small mortgage company or anywhere in between; it’s the Mortgage Professional who will pave a smooth path for your next FL mortgage need.

As we bid adieu to Ida and approach the Thanksgiving season, we realize hurricane season has almost ended for us FL homeowners.  Homeowner insurance companies fared well with respect to hurricane damage claims.  In fact, FL home buyers actually closed on their new home purchases without insurance incident. 

Remember back in 2004 when we were visited by the likes of Hurricanes Charley, Frances, Ivan and then Jeanne?  Every time a new home buyer was ready to close on their new home; banks required re-inspections.  And once those re-inspections were completed; we needed more because of the next storm.  What a year in FL mortgage closing mayhem.

It is always best to shop for your homeowners insurance as soon as you have contracted on your new FL home – especially during hurricane season.  Remember, once a tropical storm warning or watch is in effect, it is practically impossible to close on a FL mortgage.  One of the best websites to follow during the hurricane season is https://www.citizensfla.com/stormseason/index.cfm.  There you can find current storm restrictions that may affect your FL mortgage closing. 

Only 20 more days left and we are technically out of the hurricane storm season.  Then we have 7 months before the 2010 season starts.  We recommend reviewing your homeowners insurance policy and contacting your local professional insurance agent.  Your insurance agent may be able to improve your overall coverage and perhaps even reduce the monthly payment.