Tips For Today’s Florida Mortgage Applicants

It’s harder to get approved for a Florida mortgage nowadays.

There’s no disputing that, no matter your credit. But if you can clear that hurdle and scrape together enough for a down payment, you will still be in good shape with your mortgage even in today’s overvalued Florida markets.

With more listings to choose from, better home prices and less competition, you will be good to go… so long as you can pull together at least 10 percent, and possibly (and ideally) as much as 20 percent.

But don’t trade the driver’s seat for the hot seat. Think long term.

If you expect to stay in a home less than five years, don’t buy. Rent. You could easily end up getting less than you paid if you have to sell within two or three years, especially once you figure in closing costs.

Flipping may have worked in South Florida in 2001. No longer.

Here are some more tips for buyers if you are getting started …

Consider options. It sounds obvious, but you can use the extra time created by selling first to shop around. Get a sense of what’s available in your price range, what is important to you and what kind of concessions sellers are offering that you might be able to snare.

Don’t bridge. You don’t want to be stuck between two homes. There are ways to finance a down payment on a new house while you race to unload your old one, this is no time to be a “motivated” seller. Sell first, buy later.

Trust yourself. Remember, prices may continue to fall for another year or two, so once you have a handle on the market, bid low. If the seller won’t budge, walk. There’s no shortage of homes, nor are there going to be an abundance of offers.

Ask for concessions. There is no harm, and a lot of upside. Don’t be afraid to press for non-cash concessions as well. Sellers may be willing to pay a portion of your closing costs or provide a home warranty, which all ends up defraying the Florida mortgage burden in the end.

Builders are also more willing to pay closing costs or buy down the rate. For them this is a tough market. But that’s not your problem. At all.

As you venture into the murky Florida mortgage waters, remember, the time is right, but only at the right price. Be strong.