In FL, florida mortgage brokers are extremely popular. Low down payment is needed and you don’t need perfect credit. The best part… you STILL get the low interest rates! Here is what you need…
First, let’s talk about what exactly is an florida fha mortgage because you are probably thinking this sounds too good to be true. An FHA mortgage is issued by Hud approved lenders and insured by the Federal Housing Administration. That means that they are government loans just like USDA & VA. To get a USDA you must be zoned agricultural and VA you have to be a veteran to be eligible. Unlike the other 2, FHA is for everyone!
So, what is required by the lenders to get an FHA mortgage you ask?
You need 2 years worth of documented work history. That means you have to be able to prove it with tax returns. It doesn’t have to be two years at the same employer, but it does help if its 2 years in the same line of place. mortgage companies are sometimes able to look past it if you were in college and you now place with your degree.
Credit. That’s a difficult word for many people. You walk into a servicers with anything under a 620 credit score… well, you pretty much get thrown out! FHA is a bit more flexible. We have a brokers are pretty strict when it comes to other government home loan must be at least 3 years old. Chapter 13 bankruptcies are allowed as long as you have made 12 months payments on time.
Down payments are a requirement when it comes to buying a home. Most brokers for conforming financing require 20% down. That’s a lot of money. If the loan you are trying to get is $100k, well, then you need to bring 20 thousand dollars to the table!!! Who has that now days with this economy? FHA only requires you to bring 3.5% down. That’s a big comparison.
You are likely thinking that with all of these favorables, that there has to be a down fall. Right? It has to be in the rates… right? Well, you are wrong. FHA has the same low rates as conventional! You can get FHA note right now for as low as 4.875% on a 30 year fixed (which I forgot to mention, all FHA loans are 30 year fixed.
Sunday, October 4, 2009
What To Ask Your Mortgage Company
Ask your colorado reverse mortgage professional these points to be sure you choose the program that will best exceed your family
What is the mortgage rate?
This is the most obvious question about colorado va loan. The note rate is used to calculate your monthly payment payment, and it will determine how much you’ll pay over the life of the loan. However, you will need to understand more than simply the quoted rate. A good benchmark for comparing offers is their annual percentage rate. This figure combines the interest costs and other fees charged by a lender over the life of the payment.
Will the mortgage rate change over the life of the loan?
In the case of a fixed actual rate payment, the actual rate will remain the same for the entire term of the loan. Adjustable interest rate mortgages, however, have interest rates that change periodically. If you’re considering an adjustable rate mortgage, make sure you understand what the adjustment is – that is, how often the rate will change (usually annually). Also, ask what the margin will be as that will determine your payment, and find out what caps will protect you from large payment increases. You should request a chart showing the past performance of the index the payment is based on as well.
Will I be charged points?
A lender may offer to lower your payment if you pay discount points up front. One point is equal to one percent of the principal – two points on a $150,000 mortgage, for example, equals $3,000, and may lower your rate by 0.5 percent. banks may also charge origination points, which are administrative fees and do not affect the interest rate.
What are the closing costs and other fee?
Ask each servicer for a Good Faith Estimate (GFE) of the closing costs. (Lenders are required by law to provide a GFE within three days of your application). Take the time to go through each estimate carefully to be sure you understand what each item means. This is important when comparing offer as servicers sometimes use different terminology for the same item.
Will you lock-in the interest rate?
A lender may allow you to lock-in the interest rate and points quoted in your offer for a specific period of time, often 30 days. This will protect you if rate go up during the time it takes to process your application. As what date the lock-in becomes effective and whether there is an additional expense involved – and get the agreement in writing.
How will my down payment affect the cost of the loan?
Some bank require only a very small down payments of 3.5 or 5 percent, and some even offer zero-down-payment loans. But these carry significant expense to offset their inherent risk. Typically, if your down payment is less than 20 percent, the lender will require you to pay for private mortgage insurance (PMI). On the other hand, you may be able to reduce the cost of your payment, or at least improve the terms, by making a large down payment.
What documentation do you require?
financial institutions will ask you to provide a bundle of personal information, such as social security number and an appraisal of your home. Ask for a checklist so your application is not delayed by missing paperwork.
What is the mortgage rate?
This is the most obvious question about colorado va loan. The note rate is used to calculate your monthly payment payment, and it will determine how much you’ll pay over the life of the loan. However, you will need to understand more than simply the quoted rate. A good benchmark for comparing offers is their annual percentage rate. This figure combines the interest costs and other fees charged by a lender over the life of the payment.
Will the mortgage rate change over the life of the loan?
In the case of a fixed actual rate payment, the actual rate will remain the same for the entire term of the loan. Adjustable interest rate mortgages, however, have interest rates that change periodically. If you’re considering an adjustable rate mortgage, make sure you understand what the adjustment is – that is, how often the rate will change (usually annually). Also, ask what the margin will be as that will determine your payment, and find out what caps will protect you from large payment increases. You should request a chart showing the past performance of the index the payment is based on as well.
Will I be charged points?
A lender may offer to lower your payment if you pay discount points up front. One point is equal to one percent of the principal – two points on a $150,000 mortgage, for example, equals $3,000, and may lower your rate by 0.5 percent. banks may also charge origination points, which are administrative fees and do not affect the interest rate.
What are the closing costs and other fee?
Ask each servicer for a Good Faith Estimate (GFE) of the closing costs. (Lenders are required by law to provide a GFE within three days of your application). Take the time to go through each estimate carefully to be sure you understand what each item means. This is important when comparing offer as servicers sometimes use different terminology for the same item.
Will you lock-in the interest rate?
A lender may allow you to lock-in the interest rate and points quoted in your offer for a specific period of time, often 30 days. This will protect you if rate go up during the time it takes to process your application. As what date the lock-in becomes effective and whether there is an additional expense involved – and get the agreement in writing.
How will my down payment affect the cost of the loan?
Some bank require only a very small down payments of 3.5 or 5 percent, and some even offer zero-down-payment loans. But these carry significant expense to offset their inherent risk. Typically, if your down payment is less than 20 percent, the lender will require you to pay for private mortgage insurance (PMI). On the other hand, you may be able to reduce the cost of your payment, or at least improve the terms, by making a large down payment.
What documentation do you require?
financial institutions will ask you to provide a bundle of personal information, such as social security number and an appraisal of your home. Ask for a checklist so your application is not delayed by missing paperwork.
Additional Info To Know About Trial Note Modifications
I had previously defined a Trial obama loan modification as a temporary change in note terms, and in general the temporary period is usually for three months before your florida hardmoney is permanently modified. I also wrote that the permanent Note Workouts is usually not the same terms as the changed terms of the trial period. Also don’t forget that you as the homeowner must make all payments on time during the trial part. No payments can be missed; else you default on the test part terms and will thus negate your ability to qualify for a permanent restructure, meaning you will be denied! So, it is very important to make those payments.
If you have been behind on payments and are just about to enter the trial timeframe, you may find that you get a bill for double payments from your bank. It more than likely will reflect one for the default payment and also one for the payment for the first time frame , i.e. the trials first payment. If you find that this has happened to you, usually it is due to the note holders system not being fully updated. So, you first need to contact whoever is negotiating your modification to make sure that they have sent the servicers all the required paperwork for the trial section Loan Restructuring. So, don’t panic as a few phone calls will resolve the situation.
Keep in mind, it sometimes takes the lenders two to four weeks to actually get their systems updated to reflect the changes discussed. So if you have called into your bank and find that the new terms are not reflected and the lending institutions on the other end has no idea what is going on, don’t fret. It is not that much different than a refinance loan when it comes to system updates. So as a precaution, you can always call your lending institutions a few days before the first trial Note Workoutspayment is due to make sure their systems reflect the updates to the trial Loan Adjustments.
Remember, you should receive test section Note Adjustments papers to sign for the first time frame and usually this is prior to your first first section payment. Also, after you have made your third test part payment, you will shortly after get word on the terms of the permanent Loan Workouts. You can also expect to get actual permanent loan modification paperwork to sign and notarize. If you do not get these papers, make a phone call to the person negotiating your Note Restructuring. Sometimes these modifications are like “herding cats”, and they need added attention, patience, and extra phone calls so that nothing falls through the cracks.
If you have been behind on payments and are just about to enter the trial timeframe, you may find that you get a bill for double payments from your bank. It more than likely will reflect one for the default payment and also one for the payment for the first time frame , i.e. the trials first payment. If you find that this has happened to you, usually it is due to the note holders system not being fully updated. So, you first need to contact whoever is negotiating your modification to make sure that they have sent the servicers all the required paperwork for the trial section Loan Restructuring. So, don’t panic as a few phone calls will resolve the situation.
Keep in mind, it sometimes takes the lenders two to four weeks to actually get their systems updated to reflect the changes discussed. So if you have called into your bank and find that the new terms are not reflected and the lending institutions on the other end has no idea what is going on, don’t fret. It is not that much different than a refinance loan when it comes to system updates. So as a precaution, you can always call your lending institutions a few days before the first trial Note Workoutspayment is due to make sure their systems reflect the updates to the trial Loan Adjustments.
Remember, you should receive test section Note Adjustments papers to sign for the first time frame and usually this is prior to your first first section payment. Also, after you have made your third test part payment, you will shortly after get word on the terms of the permanent Loan Workouts. You can also expect to get actual permanent loan modification paperwork to sign and notarize. If you do not get these papers, make a phone call to the person negotiating your Note Restructuring. Sometimes these modifications are like “herding cats”, and they need added attention, patience, and extra phone calls so that nothing falls through the cracks.
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