- Posted by: steve
- Category: how to
Finding a mortgage company in Palm Beach County FL doesn’t have to be stressful. Click here for everything you need to know to find a good mortgage company.
Before you start looking for your perfect Florida home, you need to find the right mortgage company. The right mortgage company can help you finance your dream of homeownership without breaking your budget.
Finding a good company is especially important in Palm Beach County, where 44 of 52 ZIP codes are showing rising home prices in 2017.
Keep reading for tips on how to find the best mortgage company in Palm Beach County FL.
What You Need to Know About Mortgages Before You Look for a Lender
Finding the right mortgage company in Palm Beach County FL doesn’t have to be a stressful process.
Armed with some simple information about mortgages, you’ll be able to quickly determine if a company is right for you.
Start with the Bottom Line
First, set a boundary on how high of a principal you’re willing to take on. Your principal is simply your loan amount. When you’re buying a home, that means you’ll take into account the listing price, your closing costs, and any taxes and fees you have to pay upfront to buy the Palm Beach County property.
Lower-cost homes will always mean a lower principal. However, there are other ways to shrink the amount you need to borrow. If you have a hefty chunk of change that you can put toward a down payment, you can borrow less from your mortgage company.
You may also qualify for a federal loan program to help you lower your costs. First-time homebuyers, rural residents, and veterans and active military can all qualify for one of these programs.
Talk with your company for more information on these loans.
Think About Your Future
How long do you want to spend paying off your mortgage?
This part of your mortgage is known as the term. When you work with your mortgage company, you can choose how long you have to pay off your principal balance.
Most mortgages come with 15-year or 30-year terms. Each of these payment plans has its own pros and cons. So, work with your company to figure out which is right for you.
A 30-year mortgage will generally offer you lower rates up front. However, over the course of the loan, you’ll end up paying more for your home.
A 15-year plan will mean higher monthly payments. If you can swing the extra cost, you will own your home faster and save big-time over the course of your mortgage.
Timing Is Everything When It Comes to Your Mortgage Rate
Mortgage rates are notoriously difficult to predict. However, they matter a lot when it comes to your monthly payments.
Your mortgage rate is the interest you’ll pay on your principal balance for the life of your loan. As with all interest rates, lower is better for your pocketbook.
Rates in the U.S. change constantly. A variety of factors can influence them, including the Federal Reserve’s policies, inflation rates, the strength of the economy, and global politics. Rates are rising slightly in 2017, though they are still pretty low compared to historic data.
If you can, look for a mortgage when the national economy is strong, the dollar is up, and things are stable around the world. Always ask prospective companies to provide today’s mortgage rate when you talk with them. They should be happy to provide the most current data.
It’s All in the Details
Mortgage rates come with a little extra variety because you can choose the rate structure you want to follow.
With a fixed-rate mortgage, you pay one stable rate for the entire loan term. These mortgages usually feature a higher interest rate at the beginning. However, you’re protected from any unforeseen market fluctuations that could increase interest rates.
You can also choose an adjustable-rate mortgage, or ARM. These are riskier ventures, but the payoff can be huge.
ARMs follow the natural fluctuations of mortgage rates in the housing market. You will generally start out with a fixed-rate period of anywhere from five to 10 years where your monthly rate does not change. During this period, ARM interest rates are usually lower than those of fixed-rate mortgages.
After that period ends, you’ll pay whatever the going rate is, whether that’s high or low. A great mortgage company in Palm Beach County FL will offer rate caps to protect you from paying exorbitantly high interest if the housing market takes a nosedive.
How to Find the Best Mortgage Company in Palm Beach County FL
Now that you know what you want out of your mortgage, it’s time to find the right mortgage company in Palm Beach County FL.
Choosing a company can feel like an intimidating process. After all, you’ll be working with your mortgage company for decades to come. They may play a part in any major decisions, like taking out a home equity loan or refinancing your mortgage.
Look out for these characteristics when choosing your company.
Choose a Lender That Listens to Your Preferences
Above all else, your company needs to offer a mortgage with the specifics you want.
Stick to your guns when it comes to your principal, your term, and whether you want a fixed-rate mortgage or an ARM. The right company will listen to what you want and will offer a mortgage that meets your needs.
The home buying process can be stressful, confusing, and lengthy. Finding a company you feel comfortable with can make all this bearable—or maybe even fun.
Look for a mortgage company that is communicative and willing to answer your questions.
Find a company who explains things in a way you understand. The best professionals will give you multiple ways to reach them: by phone, email, or during an in-person appointment at their office.
Check into Their Credentials
Don’t be afraid to walk away if you find a company that seems too good to be true. Countless mortgage companies lure buyers in with less-than-ethical practices, only to leave them in a lurch later on.
Look for a company who meets federal laws and regulations and is an Equal Housing Opportunity company.
Apply Today with New Florida Mortgage
New Florida Mortgage can help you get the loan you need to finance your dream home in Palm Beach County. You can apply, check your credit score, prequalify, or look into pre-approval options all on our website. Visit us today for help with your Florida mortgage.