Tuesday, January 15, 2008

How to Get a Mortgage in Florida

Introduction

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.

Instructions

Difficulty: Moderately Easy

Steps

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Step One

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.
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Step Two

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.
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Step Three

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.
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Step Four

Realize that in Florida, mortgage brokers are required to be licensed Ask for proof of their license.
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Step Five

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.
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Step Six

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.
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Step Seven

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.
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Step Eight

Contact a real estate agent and begin your home search. Take your time deciding which home is best for you.
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Step Nine

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.
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Step Ten

Close on the house and pay all fees and closing costs. Your lender will contact you with payment information.

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