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.

Many FL home owners have been on hold with respect to FL jumbo mortgages.  Whether purchasing or refinancing, the jumbo markets had all but dried up only a short time ago.  Well, I am here to let you know there are FL mortgage lenders that have some of the best interest rates and closing costs for all your FL jumbo mortgage needs.  And while shopping for your jumbo mortgage program you might consider the advantages of a very low interest rate ARM or adjustable rate mortgage.  Be cautious though – details will make dramatic differences when choosing the right program.  For example many FL jumbo mortgage ARM’s are available with interest rates that are fixed for 5 or 7 years.  The real question is what happens, worse case scenario, after the fixed rate period is over. 

Be sure you are asking the right questions as jumbo mortgages can differ with each lender.  Sure, the interest rate may be extremely low and is fixed for 5 years (for example), but what about the Index, caps and margin?  First ask what the Index is tied to , and what the current Index is for the day.  You may even want to review the history of that Index to ensure you are comfortable with it’s historic changes.  Next, determine what the adjustment caps are for this particular FL jumbo loan.  Can your interest rate adjust up or down by 2% in the first adjustment year?  Or is your first adjustment cap the same as your life cap – putting more pressure once the 5 years is up?  And last, ask about the margin.  The margin is the fixed percentage that never changes during the life of the loan.  When the interest rate is adjusted, the fixed margin is added to the adjusting index to determine your new adjusted rate for usually the following 12 months.  You will have great results when you are working with an experienced FL mortgage professional.

FL jumbo markets have turned around and jumbo mortgages, especially the shorter fixed rate terms have never looked so good.  Call now at 321.987.9876 or contact us via email for more information with your next FL jumbo mortgage loan.

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.

Ever come across a first time home buyer who has worked hard and saved towards the purchase of their first FL home; but may have a few credit glitches which result in a less than perfect score?  Most larger banks require at least a 620 middle credit score before considering a FL FHA loan.  Well there is one Lender in Central FL that makes buying a bit easier.

Think about this for a minute.  It is true that obtaining a FL mortgage in today’s market is more difficult than ever.  Banks have tightened their requirements, on top of already restrictive guidelines from Fannie Mae, Freddie Mac and HUD (FHA loans).  Some banks require credit scores in the 660 range before allowing hard working and well deserved home buyers to move forward on their new FL dream home.

If you are looking to purchase a FL home or have a client with less than perfect credit scores; have them contact us or call 321-987-9876.  We don’t believe that a credit score of 619 should disqualify you from buying your first FL home.

FL home buyers are turning to experienced FL mortgage professionals, before jumping into interest rate shopping.  Gone are the days of merely searching for the lender quoting the lowest FL  interest rate for FHA, VA home loan or conventional FL mortgage.  Some home buyers have learned the hard way that a low interest rate is only exciting throughout the mortgage process.  Once they’ve been turned down by the underwriter, weeks later; that  interest rate no longer matters.

It pays to search for a FL mortgage professional team with experience.  With experience comes the ability to provide upfront mortgage insight to home buyers approval ability, prior to application. 

Recently I  had a FL home buyer who spoke to their bank loan officer offering an awesome low fixed rate quote.  They provided all income and asset information along with the formal loan application.  Their mortgage file  then was turned over to a processor who orders, in this case, an FHA case number and a full FHA appraisal and gathers additional required documents to submit to underwriting for a loan commitment.  And days later, they find their FHA mortgage loan was never had a chance for approval.

And what about that low fixed interest rate that grabbed their attention?  No approval - no low  interest rate.  I see it all the time.  The low advertised loan rate opens the door for an application and documentation gathering which wastes everyones time and ends in emotional chaos for the home buyer and their FL Realtor. 

 The most important thing a FL home buyer can do when seeking a new mortgage is to inquire with an experienced FL mortgage professional and review probable approval options.  Inexperience leads to guessing and guessing doesn’t secure your low interest rate that you thought was promised.  Speak to a knowledgeable FL mortgage professional.  And happy house hunting!

After meeting several Oviedo FL Realtors this morning; I realized most were dealing with the same FL mortgage issues day in and day out.  Typical underwriting turn around times seemed to be around 45 days. And sometimes that was just enough time for an underwriter to determine why they wouldn’t approval their FL mortgage.  Yikes!

Some Oviedo home buyers sought financing from a mortgage broker while others depended on well-known name brand large banks.  Now, banks do have their additional underwriting restrictions (that’s for another blog) that some mortgage companies get to avoid.  But  it seemed no matter which avenue an Oviedo home buyer took; it either took several long weeks or months to get denied! 

That’s why successful Oviedo first time home buyers need to work with experienced mortgage loan officers.  Preferably at a local mortgage lender where you can get sound mortgage insight before you jump into buying your next home. A seasoned mortgage professional will assess your home buyers specific financial situation and let you know immediately if you are qualified to move forward.  No sense in wasting time these days.  For your next Oviedo FL mortgage approval fee free to contact me directly at 321-987-9876.

Many of the homes for sale in Florida are FL bank owned properties. FL home buyers typically need to repair something with these usually deteriorated properties.  Some homes need major repair, but several require only minor upgrades such as new paint, new flooring or attention to even smaller details.  There are programs available to meet these needs like mini-construction loans, FL Home Path Renovation mortgages or FHA 203k streamlined repair mortgages.  But there is one that doesn’t cost extra and requires no inspections.

An escrow hold-back policy on conventional FL mortgages makes repairing or upgrading minor repairs, on FL home purchases, very easy.  Allowances can be  up to $5,000 to be held in escrow for these repairs or upgrades.  This should be available for FL mortgages on primary homes, 2nd homes or vacation homes and FL investment properties.  You can use this to replace carpets, tile flooring, paint the interior, etc.

So when you are shopping for your next FL home and it needs a little TLC; ask about an escrow hold-back policy on conventional loans.  Embrace the possibilities.  For more information on this or other FL construction type mortgages contact me at info@beechtreemortgage.com or call now at  321.987.9876.

If you have been thinking about refinancing your current FL VA home loan to a lower fixed rate; now may be the time.  Interest rates are expected to slowly increase from today’s available lower VA fixed rates.  There are huge advantages (less hoops to jump through) many FL Veterans enjoy when considering to streamline refinance their VA home loan with IRRRL.

IRRRL stands for Interest  Rate Reduction Refinance Loan and many refer to it as a streamlined refinance program for VA home loans.  The biggest advantage is there is no requirement for an appraisal.  Although in today’s declined market situation, many lenders or banks may ask for a drive-by appraisal to determine equity position. 

Typically credit reports are streamlined as well; reviewing only the previous 12 months of mortgage payment history.  Each lender is different so remember to ask.  Remember too, there are no income requirements – so income qualifying is not an issue with a VA IRRRL loan.

The VA funding fee is reduced to just 0.50% and can be paid in cash or rolled into the new VA mortgage loan amount.  And even though you cannot receive more than $500 as cash-out; everything else is typically rolled into the loan amount allowing the Veteran not to bring any cash to closing. 

For more information on VA IRRRL streamlined refinance loans please call your experience FL VA mortgage professional or contact us today.

Word on the street is that fixed interest rates for home buying shouldn’t start significantly increasing for the next 6 months.  That’s great news considering interest rates are still available in the very low 5% range for qualified buyers seeking a FL FHA loan, VA home loan or Fannie Mae conventional  mortgage; and with no discount points.  Whether you are buying your next home as a seasoned investor or FL first time home buyer; your FL Realtor will amaze you with current reduced home prices.  Over the weekend a client called about their desire to purchase their dream home in Key West, FL .  Built in 2007, their 1,880 square foot , 4/2 vacation home was listed under $50,000!  Even Condominiums in Cocoa Beach, FL are at ridiculous reduced prices and many second home or vacation home buyers are taking advantage.  But keep this in mind. Although interest rates are down and home prices are down everywhere in FL; so too are the qualifying debt ratios for your FL  mortgage approval.

When considering a new home loan, FL mortgage professionals must review and determine qualifying debt ratios.  This is done by dividing the home buyers monthly debts (credit cards, auto, boat, student loans) by their gross monthly income.  Fannie Mae has reduced their debt ratio maximum to 50%.  So, for example, if a home buyer has a million dollars in the bank, and credit scores over 800 (superb), and puts 20% towards a down payment, but their debt ratio is 56%; there is a very good chance they will not obtain an approval.  The same holds true for many FHA first time home buyers; except the qualifying debt ratios may be as low as 45%. 

There are ways to achieve a lower debt ratio and your FL mortgage professional is the first one who may have the answers.  Don’t lose your next home by not talking to someone with experience, first.  The mortgage underwriting squeeze does need to ease a bit.  For now, one can only hope that when interest rates start climbing and home price begin increasing as homes appreciate; that home buyers remember to begin their FL home search with speaking to an experienced FL mortgage professional.  Got a question with your next home buyer?  Contact me at info@beechtreemortgage.com anytime.

Many FL home buyers are calling to simply ask what current credit score requirements are for Fannie Mae, FHA or other types of home loan financing.  Generally speaking, in today’s restrictive lending environment, FL home buyers need to have established a good credit history usually evidenced with favorable credit scores.  There are exceptions to today’s FL mortgage tighter qualifying credit scores and Veterans are included.

When a Veteran seeks to purchase their next or first FL home mortgage; they can enjoy a little breathing room when it comes to credit score quailfying.  As long as the amouont borrowed is $417,000 or less; there may not be a credit score minimm requirement.  Good news for Veterans who may have run into making slower credit card payments due to a temporary job loss or unexpected circumstances. 

Remember whether a FL first time home buyer or moving up to a larger home; qualified US Veterans have advantages with a VA Home Loan over other FL mortgage options, including:

• Save more money with no down payment requirement for loan amounts up $417k (Monroe County allows up to $425k)
• Enjoy lower mortgage payments with no monthly mortgage insurance
• Easier to qualify with less restrictive credit score requirements (Bankruptcies under 2 years may be considered)
• Save even more as you could receive up to 4% of your contract price towards closing costs, from allowable contributors

For more information with your next FL VA home loan, feel free to contact me directly at info@beechtreemortgage.com.