- April 28, 2017
- Posted by: steve
- Categories: mortgage articles, mortgage news, mortgage rates
It’s critical to keep up with the latest florida mortgage trends to make informed choices. We’re updating you on the industry trends you need to know.
If you’re seeking a Florida mortgage in 2017, congratulations! Now get to work.
There’s a lot you’ll need to know, so buckle down because we’ve got you covered, and you can do this. Here are our mortgage calculators to whet your appetite.
With the Florida housing market in flux this year, Florida mortgage seekers need to stay on top of it to come out ahead.
Getting the right loan for you isn’t always a walk in the park. It takes vigilance, time, energy, research, cross-reference search–
And even then, there are no guarantees.
Two of the top five reasons why mortgage brokers reject home-loan applicants, as listed on Realtor.com, are insufficient income and low home appraisal.
If you don’t make enough money or you’ve lost your job, it’s tough. And when the house is worth less than the selling price, brokers will reject those odds.
We want to help you succeed in not only getting approved, but getting the best rate possible. So relax because we’ve done your homework for you.
We’ve checked and double-checked the latest trends and the most important information so you can know where you stand on your Florida mortgage.
Sit back and read up on the latest Florida mortgage trends.
Florida Mortgage Checklist
Get revved about the process by focusing on your intended outcome–the home you’ve dreamed of.
By focusing on your goal, rather than on the imagined stress of the process, you’ll give yourself every chance of success with a Florida mortgage broker.
Prepare to reach your goal with our Florida mortgage checklist:
- Get the trends. What are Florida mortgage interest rates doing these days?
- Know your vocab. When lenders see you as an informed consumer, they know you are less of a risk.
- Get your credit score. A brokers’ best tool to assess your eligibility is your credit score. Find out what your score says about you.
- Opportunity’s knocking. Are you a first-time buyer? Are you or your spouse a veteran?
Get the Trends
Knowing when to buy can be just as important to qualifying for a Florida mortgage as your job or your credit score.
Florida mortgage rates are now at historic lows. In fact, they’re slightly lower than elsewhere in the country.
This is due in part to the new presidential administration, so, as always, rates are variable and unpredictable.
If you’re buying a home, now may be a perfect time.
National and state trends also vary among lenders. We have one of the quickest application processes available to get you started.
Although the interest rates are lower on the 5/1 ARM, the adjustable rate is unpredictable. It can end up costing more in the long run.
Keep reading for more info on fixed-rate vs. adjustable-rate mortgages.
Know Your Vocab
When you walk in to speak with a broker, it’s easy to feel like you’re the little guy and the agent behind the desk has your fate in his or her hands.
Relax. We’re all just people here. You are a customer, and a broker wants your business; he or she just wants to know you’re not too big a risk.
Show your Florida mortgage broker you’re not a risk by brushing up on the following terms. Knowing your stuff shows you’re making informed decisions.
Fixed-rate mortgage (FRM)–a mortgage with the interest rate fixed at the time of signing.
This means that, regardless of fluctuations in the market, the interest rate remains the same. Payments are, therefore, predictable.
Adjustable-rate mortgage (ARM)–a mortgage in which the interest rate varies monthly, biannually, or annually.
Rates fluctuate according to market indices and the cost to the lender for borrowing the principal on the credit market.
Option ARMs and hybrid mortgages are types of ARMs.
Annual percentage rate (APR)–the annual rate of interest lender charges–that is, the periodic rate of interest multiplied by the number of periods per year.
This is non-compounded interest.
Annual percentage yield (APY)–the annual rate of interest, including compounded interest.
Another way to define APY is the cost to the borrower of interest compounded during the year.
If your monthly payments are made on time, you will carry no balance. However, if you carry a balance, the interest rate is compounded.
Therefore, your APY will be higher than your APR, depending on the balance you carry. This can add up over 25 or 30 years, so make sure you pay on time.
Reverse mortgage–also called the home equity conversion mortgage (HECM), a reverse mortgage is money taken out of home equity.
Homeowners must be 62 years of age or older to qualify for the reverse mortgage.
It carries no set monthly or annual payments. However, it does depreciate the value of the home, and it must be paid off by the time the homeowner dies.
Follow our link for more information on your Florida reverse mortgage.
Pre-approval–also called pre-qualification, it’s a written letter stating that a lender is willing to front you a particular sum based on particular criteria.
The criteria might be your job, your spouse’s job, your annual income, your rate of credit, etc. What it does is gives a homeowner the confidence to sell to you.
It’s like your Florida mortgage back-up.
Now that you’re armed with the lingo, the next step is to access your credit.
Get Your Credit Score
Before you apply, get a copy of your credit report so you know where you stand. This way, you’ll be prepared for any questions that come your way. You can pull your own credit report here.
The 3 credit bureaus–Equifax, Experian, and TransUnion–are each required by The Fair Credit Reporting Act to provide you with one free report per year.
A FICO score, which is a type of credit score calculated by the Fair Isaac Corporation, helps lenders assess credit risk.
The Fair Isaac Corporation is not a federal entity. Click here for more information on your FICO score.
Once you’ve obtained your three scores (with or without FICO), compare them. Slight differences in number are nothing to be alarmed at.
What you want to check for is any listed information that is incorrect, such as account numbers that are not yours or paid accounts reported as unpaid.
Incorrect information can lower your score and hurt your chances of Florida mortgage success.
If you find incorrect info, contact the reporting agency immediately. When you meet with the broker, let him or her know you’ve contacted the agency and why.
Don’t get discouraged if you have bad credit, have recently changed jobs, or have lost your job.
While this information may affect a broker’s approval, the law offers some protection in these cases.
According to the Federal Trade Commission (FTC) page, “Mortgage Discrimination,” you should explain, in writing, reasons for bad credit or job loss.
The FTC states that “if you ask lenders to consider this information, they must do so.”
Take advantage of different deals for buyers with different needs. For instance, many Florida firms offer incentives for first-time buyers.
Low-income families don’t have to miss out. Programs are available in Florida that offers low-interest rates on fixed-rate mortgages.
They may also offer cash up front, such as up to $15,000 for closing costs and down payments.
Other programs are in place to help buyers. For instance, the VA Home Loan.
If you or your spouse have been active in any branch of the military for two or more years, you may qualify for a VA Home Loan.
These loans were originally part of the 1944 GI Bill. Dishonorable discharge, however, disqualifies applicants.
Otherwise, two years active or 90 days in combat are the main criteria.
Benefits of the VA Home Loan include no down payment, no credit checks, low-interest rates, and no prepayment penalties.
Buying a home doesn’t have to seem so daunting when you’re armed with the right tools. Knowing the trends in interest rates helps you decide when to buy.
Brushing up on your vocab lets you protect yourself and helps you appear attractive to lenders.
Getting your credit score arms you ahead of time. It allows you to correct errors before they reflect on you in the eyes of a Florida mortgage broker.
Knowing special opportunities available to you can help save you time and money.
We want to help you succeed in your quest to buy a home. Please contact us with any questions.
We’d love to hear from you! Leave a comment and tell us how the latest mortgage trends are impacting your process.