- August 10, 2017
- Posted by: steve
- Category: mortgage questions
Applying for a mortgage is a pretty big step, so it’s important to educate yourself. Here are 10 questions to ask a Palm Beach mortgage company.
Salt, sand, and sultry living.
Those are just a few of the many gorgeous aspects of Palm Beach life.
Whether choosing to live inland or choosing to live on the Island, there are many incredible real estate options to choose between.
Looking for a home is the fabulous part of real estate shopping; finalizing all of the details to ensure a speedy closing and move-in date could definitely use the finesse of a professional.
There are a number of things that need to be considered when navigating the Palm Beach real estate market.
Many of these considerations involve the importance of location, proximity to specific landmarks, as well as income levels.
Ranging from affordable to high-end luxury, Palm Beach offers incredible real estate opportunities for anyone on any budget.
With a median property range of $246,000, the housing market remains a strong investment located conveniently next to one of the most beautiful stretches of beach in the nation.
When it comes to knowing which Palm Beach mortgage company can help track the perfect home in the perfect location, though, is an important commodity in this buyers’ market.
10 Questions To Ask A Palm Beach Mortgage Company
1. What Are The Current Interest Rates?
With current interest rates in the 3-4% range, purchasing or refinancing a home is a good investment and a pretty affordable option in the current market.
However, many components are considered when deciding upon interest rates for each home loan. Some of the considerations are whether a 10, 15, 20, or 30-year fixed loan is chosen, as well as credit scores.
This is an important question to ask a Palm Beach mortgage company when looking to purchase a Palm Beach home.
2. Which Type Of Mortgage Should Be Chosen?
This is more of a personal decision, but one that should be discussed with a mortgage lender that has quality experience.
Knowing the difference between the short and long-term financial obligations of the different mortgage loan types (Conventional, ARM, FHA, VA, 203k Rehab, etc) is incredibly important before settling on a home in Palm Beach County.
Discussing these differences and understanding what is the best option to choose requires the expertise of a trusted, knowledgeable Palm Beach mortgage company.
3. What Loan Options Are Available?
After discussing the different mortgage options, the next portion of the conversation should be focused on which loan options are available based on income, credit, and budget.
Some loan options will not be available for certain types of home purchases.
For example, a 203k Rehab loan would not be appropriate if the purchase was for a new build, nor would a USDA Rural Housing loan be appropriate for a sprawling estate on the Island.
These are types of questions that can be best answered by a Palm Beach mortgage company.
4. What Are The Closing Costs?
Closing costs will vary for every home purchase or refinance.
Sometimes these fees will fall to the seller, while other times these closing costs will be the responsibility of the buyer.
Depending on how the sale is negotiated, there are a number of different ways that closing costs can be absorbed.
Having the expertise of a well-versed mortgage company will help ensure the most appropriate and cost effective option will be utilized.
5. How Important Is Credit Score?
Credit scores used to be the hallowed indicator of whether a potential home owner could close on the perfect house.
However, based on the tumultuous past of the housing market – credit scores have become a number that can be negotiated.
For most conventional loans, an excellent credit score will be given precedence when deciding on whether a mortgage company will loan the funds and provide the best interest rate.
But, there are some loans that take personal situations into account and provide a bit more leeway when it comes to less-than-stellar credit scores.
While searching for the perfect home, having a stellar Palm Beach mortgage company that can help decipher scores and their effect on loan approvals will be a monumental help.
6. What Is The Minimum Down Payment Required?
Depending on the loan type, down payments will be a bit different for each different mortgage.
Some mortgage options will have low to no down payment; others will require at least 20% of the purchase cost.
Even more, there are a handful of loans that can provide down payment assistance for part or all of the cost.
7. What Type Of Documents Will Be Needed?
For most mortgages, similar types of documents are needed for the underwriting team to determine which type of loan is needed, as well as how much can be funded.
Typically, the following types of documents will be requested when securing a home loan:
- Pay stubs for each person on the loan (30 days)
- Tax returns for 2 years
- W-2’s for 2 years
- Form 4506-T or 4506T-EZ (provided by mortgage lender)
- Bank statements for 2-3 months
- Additional income (social security, pension, dividends, security accounts, etc)
- Copy of Good Faith down payment (provided from buyers’ bank)
- Any debts (car loans, student loans, etc)
8. How Long Will Loan Processing Take?
The absolute best way to expedite the loan process is to get a pre-approval and a pre-qualification from a bank or lender.
Securing these documents, essentially, takes care of getting all the paperwork and documentation in line for a tentative approval from a lending company.
Choosing a Palm Beach mortgage company ahead of time and getting a solid pre-approval and/or pre-qualification that documents the price of the home that can be purchased will greatly expedite this process to within a few days.
Without these pre-documents, the time frame can extend into weeks, and quite possibly, months.
9. What Are The Specific Qualifications?
The specific qualifications will vary based on home price, credit score, amount being loaned, as well as a handful of other potential stipulations that each bank or mortgage lender may request.
Choosing a quality Palm Beach mortgage company ahead of time will specifically outline the qualifications needed for each individual loan.
10. What Could Delay Approval?
There are all kinds of things that could, potentially, delay a loan approval.
Liens, title issues, easement issues, seller/buyer situations, and a number of other unforeseen scenarios could delay approval and closing on a home.
However, choosing a quality, knowledgeable, well-established Palm Beach mortgage company can easily help navigate any possible situation that could delay a loan approval.
Moving On Up
Palm Beach has become one of the hottest markets in Florida, as well as much of the United States.
With pristine beaches, phenomenal shopping and dining, as well as an incredible way to live the posh, Florida lifestyle – Palm Beach is the perfect place to purchase a home.
Having the guidance, support, and expertise of an expert can greatly expedite the home buying process and provide a stellar experience.
Knowing the right questions and being prepared to tackle a new home purchase is the best strategy to finding the perfect home in Palm Beach.
Come discover the difference in living; come discover Palm Beach.