Fort Lauderdale Real Estate | Buying: Top 3 Things To Do
Preparation is key to applying for a South Florida Real Estate Home Mortgage
Purchasing a home is the largest investment that most people will make in their lifetime. An honest evaluation of your finances and thorough planning for a mortgage are essential to a wise buying decision. With housing prices and mortgage interest rates at record lows, conditions are good for you to purchase a home. Even with the rates being at a record low it is harder to get a mortgage these days.
Mortgage lenders will look for three main things: a steady income, a down payment, and a solid credit history. Checking your credit report will let you see if there’s anything that’s hurting your credit. You never know which credit report the bank will pull, so make sure to check all three of them. You always want to dispute any inaccurate information, when applying for a mortgage. Misinformation can hurt your credit score, and get your application denied. It is also wise to pay off any delinquent accounts, late accounts, charges, and collections. Mortgage lenders want to be sure that you are able to pay your mortgage on time before they give you a loan for the mortgage.
Check your credit score: Your credit history is an important factor when applying for a loan.
Most lenders rely on the Fair Isaac Corporation (FICO) credit score when reviewing a loan application. The score reflects how well you manage debt and is calculated using data from your credit report. A lower credit score will result in a higher mortgage interest rate; if it’s too low, you may not be approved for a loan at all. There are ways to improve a credit score over time, such as paying bills on time, only opening lines of credit you need, and keeping credit card balances below half of your available credit.
Review your finances: A detailed analysis is an important part of the buying decision.
You should calculate all of your fixed monthly expenses; include a potential mortgage payment, homeowner’s insurance, taxes and condo fees. Also include obligations like car payments, credit card debt and living expenses. You should add home maintenance costs as well. Several websites offer interactive calculators on webpages, to help potential buyers estimate the cost of a mortgage.
Organize your finances: the most important thing to remember when preparing to apply for a mortgage is to organize your finances before you go to the bank.
Getting a loan requires documentation including, but not limited to, pay stubs, tax returns and financial statements less than 60 days old. Make sure to provide copies of additional monthly payments such as car loans, credit cards and student loans.
Once you sign a contract to buy a home, expect additional “closing costs” when it’s time to make the purchase. The costs vary depending on the purchase price, contract details, and whether a real estate attorney or title/escrow company is involved in the transaction. By law, lenders must give you a written estimate of closing costs within three days of accepting your loan application.
Contacting a trained and knowledgeable Fort Lauderdale Realtor is key the process.
The Henri Frank Group at Remax Preferred with offices throughout Broward County in South Florida can be reached at 2810 E Oakland Park Blvd, Fort Lauderdale; 2166 Wilton Drive, Wilton Manors; 2 University Drive, Plantation; 2608 N Ocean Boulevard, Hillsboro Beach. The Henri Frank Group is brokered by REMAX Preferred and has Florida state licensed Realtors assisting our buyers, sellers and investors in the South Florida region of the USA. Contact the group at 954-604-9999 or email us at firstname.lastname@example.org