Looking to Buy? Want to Find the Best Florida Home Loan? Here are Ten Simple Tips…

With the Spring home buying season upon us, Florida home loans are sure to be in high demand. Even in a down year for the market, thousands of first-time buyers and experienced homeowners alike will be looking to make moves. When it comes to getting the best deal, you have to do more than understand the various types of Florida home loans. You need to abide by a basic set of rules when shopping for a mortgage. Here are 10…

1. DON’T PANIC ABOUT RATES. While Florida home loan rates have risen significantly since last year (see chart below), they are still low by historical standards and expected to remain near current levels through the end of the year. So don’t rush into things and make an offer on a house just because you’re worried about rates going up.

2. STICK TO BASICS. The 30-year, fixed-rate mortgage is the industry standard for a reason. It’s not complicated and it gives you security. As Florida home loan rates rise, adjustable-rate loans aren’t the bargains they were even a year ago. Most likely, you want to keep it simple.

3. JUST SAY NO (TO EXOTIC LOANS). Stay away from exotic loans. Plain and simple, if you have to stretch yourself thin, it’s not a good move. Even no doc loans have their drawbacks. If you are told that you can refinance a loan later by a mortgage lender, don’t buy it. First of all, it may not be the case. Secondly, that doesn’t mean it’s wiser anyway.

4. KEEP IT REAL. More accurately, be realistic. With the market cooling, don’t talk yourself into a massive Florida home loan in hopes that the value of your home or condo will rise sharply and bail you out. The days of 20-40 percent annual appreciation in South Florida are over. Temper your expectations and be conservative.

5. COMPARE, SHOP AROUND. Get quotes from different kinds of lenders as you move forward in the process. Banks and credit unions, mortgage brokers and mortgage companies all give you options with pros and cons. Brokers can get good quotes from dozens of lenders, but they’re also going to want commission. If you cut them out of the equation and shop smart, you could save some cash.

6. TRY TO FIND A DEAL. It sounds obvious, but there are things you might not have considered. Lenders such as banks and credit unions offer special lower-rate or lower cost loans to first-time buyers and middle- and lower-income buyers. Ask around to see if you qualify, and be sure you explore all options before committing to any deal.

7. DON’T DRIVE YOURSELF NUTS. When it comes to Florida home loan sources, costs are going to vary. But not enough that you should make 75 telephone calls. You don’t have to make yourself insane just to save $60 on closing costs, as long as you have a good deal in place overall. Pick your battles and try to stay on an even keel.

8. TEST THE LENDER. Specifically, their service. Ask how long will it take to close a Florida home loan such as yours. With the refinancing boom over and done with, it’s less hectic time for lenders these days. Your Florida home loan should be able to be processed quickly. If not, you might want to consider another source of financing.

9. BE PREPARED. In order to speed things up, have your paperwork in order. As easy as it is to prepare for the mortgage process, most people do not go to the effort to fix errors and compile all their documents. Get preapproved for a loan, too, so that you can move quickly on a purchase if needed. Your pre-approval can also mean the difference when the seller is fielding offers.

10. GET IT ON PAPER. In business and with your Florida home loan, it’s imperative to finalize an agreement legally. Make sure to get the loan offer and all related terms, such as the lock period for the Florida mortgage rates, in writing. Then everything will be alright!