Something to Look Forward to: Instant Florida Home Loan Approval

Once you come across your dream house, you don’t wanna wait another second before making an offer on it. Often, however, potential buyers need to wait until their application for a Florida home loan is approved before this step can be taken.

But this may not have to be the case in the future. A number of specialist mortgage lenders are drawing up plans for instant Florida mortgage loan approvals that would give house hunters access to immediate offers without even requiring them to obtain a formal property valuation.

Moving ahead in the Florida home loan world

Such a move comes as strong growth in the availability of electronic information accelerates the process of securing finance on property purchases. Fierce competition among Florida home loan lenders is also driving greater product innovation as they seek new ways to attract buyers.

Lenders can now obtain comprehensive land registry information online that can help them estimate the value of certain properties without completing a professional valuation. It speeds up the home buying process for individuals.

A fewlenders could launch instant binding mortgage offers by the end of this year. The new service could mean that home buyers are able to secure an unconditional Florida home loan in a matter of minutes rather than the typical one or two-week time frame they currently face.

Technology helps borrowers with their Florida home loans

Groups such as BM Solutions, Gmac and Mortgage Express already have advanced technology systems in place that enable borrowers to make online mortgage applications if they are going through a broker. These lenders can then make conditional offers, known as “decisions in principle,”which are subject to a full valuation of the property.

Lenders will be able to use information on sales of other similar properties in the same area as well as historic price inflation data to assume valuations. These checks would run in tandem with personal credit score tests and income checks, which have been conducted online for some time.

But James Cotton, mortgage specialist at London & Country Mortgages, warns: “This type of mortgage offer will not work for everyone. The lender would have to be able to accurately value the property online so this would exclude more out-of-the-ordinary properties.”

For seeking Florida home loans, though, the instant offers could give protection against being held up by inefficient property chains. Borrowers would, of course, still have to rely on their solicitors acting quickly to get the legal requirements tied up. But this could be a fast start.