Buying or refinancing a home in Florida can be one of the most important financial decisions you will make. You need to be certain that the person and the company you trust with helping you secure financing is going to look out for your best interest. There are many options when it comes to financing a home so, what are the best financing options for your financial picture?
Not all mortgage loan originators are the same. There are several things to consider when choosing the person that you will work with to secure your mortgage. Below are things you need to consider:
Do you qualify for a mortgage? – The mortgage industry has had major changes to the underwriting rules and requirements. It is important that the mortgage professional you choose is up to date on the current mortgage programs and the guidelines. The last thing you want is to invest your time and money (appraisal and inspections are paid prior to closing) and then find out that your credit score, assets or income did not qualify under the current underwriting guidelines. For example: The majority of FHA investors now require a minimum credit score of 640….that is much higher than most people think. Investors are constantly changing and revising the conditions for which they will lend money to homeowners which is why it is vital that you work with someone who is knowledgeable and current on all of the available mortgage programs.
Available mortgage programs – There are many mortgage programs available to homeowners and it is important to have options to choose the program that best fits your financial situation. There are programs for no down payment, low down payment, large down payment, large loan amounts, home repair loans, short term (adjustable rate) and long term (fixed rate) loans. You wouldn’t car shop at a dealer who only sold one make, model & color vehicle so why would you limit your self when choosing the right mortgage.
Are you being charged points? – Every mortgage application and financial situation is different. Sometimes, points are required due to loan adjustments. For example: If you are financing an investment property, the lender will classify it as a higher risk loan (compared to financing a primary residence) and then charge an adjustment cost for the loan. So, you may be required to pay points depending upon the specifics of your loan such as loan size, credit score, cash-out, property type & occupancy. However, you may also be charged additional origination “points” which is for the mortgage company and mortgage loan originator services. Loan charges vary from company to company however, they should be reasonable to the type of mortgage being requested. Therefore, it is very important that you work with a reputable mortgage loan originator who has a proven track record of providing clients with fair, honest and ethical mortgage loans.
Attention to detail – The individual you choose to handle your file should be involved with every aspect of your loan. They should not just take your application and then forget about you. They should take a complete application and make sure to get all of the information from you that the underwriter will need to approve your loan. The underwriter has the ultimate decision when approving your loan however your mortgage loan originator is responsible for knowing what the underwriter will require and they should document everything from the beginning. A good mortgage loan originator will take your application, verify that you will qualify for the financing, discuss all of your loan options, disclose the terms of your loan by sending you the initial mortgage loan disclosure package and then request all of the documentation needed for the underwriter to approve the loan. Your file should be complete with all the required documents so that the underwriter can verify that you meet the required credit, income & assets to qualify for the mortgage. If your file is not complete with the necessary documents, the underwriter can not proceed with your file and this can delay your closing. They should also make sure that the services the processor orders such as appraisal, insurance inspection and title are being preformed in a timely manner.
In the end, you are the one who is responsible for paying the mortgage so make sure you get the loan that is right for you. If your mortgage loan originator does not take the time to talk to you and answer all your questions or if they make you feel like just a number; they are not the right person for you to trust with your mortgage financing. If you need a Florida home mortgage and would like to discuss your options, you can reach me directly at (561) 291-2831.
