How to Get a Mortgage in Florida. Your prospects of getting a home mortgage in Florida can be sunny if you prepare yourself ahead of time by conducting your own research. When shopping lenders for the best rates, have a list of questions ready and pay careful attention to the answers they give. Follow these steps to getting a Florida home mortgage loan.
Contact one of the major credit agencies and get a copy of your credit report for review. Clear up any mistakes before applying for a loan.
Florida has the "Florida Fair Lending Act" which punishes predatory lenders (lenders that intentionally coerce consumers into contractual loans with unusually high payment terms and interest rates, often directed at uninformed borrowers or those with poor credit) that engage in high-pressure sales tactics, harassment in collection, or trick a borrower into taking out a loan they cannot afford and then foreclose on the home.
Shop around with different mortgage lenders like mortgage brokers (individuals and agencies that arrange financing from a variety of lenders) banks, credit unions and online mortgage companies, for the best rates and terms.
Realize that in Florida, mortgage brokers are required to be licensed Ask for proof of their license.
Try to avoid Adjustable Rate Mortgages. These move some of the interest rate risk away from the lender and onto you. Basically, if interest rates rise, so will your mortgage payment. If interest rates fall, your payment will stay the same or decrease slightly. If there is a huge spike in interest rates, you could lose thousands.
Explore the many Florida and federal programs that are offered to veterans, disabled, senior citizens, low-income, single parents, rural home buyers and even current home-owners seeking second mortgages. Here are just a few of the available housing programs like th e Homownership Loan Program, First Time Homebuyer Program, and the VA Home Loan Program.
Get pre-approved for a home loan from the lender that best fit your needs. Remember to bring all paperwork such as investment information, pay stubs, tax returns and any other specific documents.
Contact a real estate agent and begin your home search. Take your time deciding which home is best for you.
Find the right home and finalize a loan application with your lender. Choose the loan that gives you the best terms and the lowest interest.
Close on the house and pay all fees and closing costs. Your lender will contact you with payment information.
Before you sign, examine the terms of the home mortgage carefully. There may be charges later than can wreck your budget, and you may overlook aspects of the mortgage that could cost thousands of dollars later. Shop around for the lowest interest rates. Even one quarter of a percent can mean thousands of savings over a 30-year mortgage. Have your prospective home professionally inspected. Discover problems that may exist before the deal is finalized. Do not let a real estate agent pressure you to buy a specific home, as they may have another agenda.
Record low interest rates of the recent past have led to an explosion of unethical lending and loan scams. You may wish to have an attorney review any documents before you sign them. Before you buy a home, check to see that the home title is clear of liens. Never pay a lender to apply for a loan. No legitimate lenders will ask you to pay them to see if they will give you money for a home