Your Fort Lauderdale Mortgage Banker Wants To Say “YES!”

The timing of this article couldn’t be better because my main goal going forward is to educate everyone involved in the real estate transaction about what is needed for a loan and how we as mortgage professionals don’t want to ask for it as much as a borrower doesn’t want to give it.  But it has to be done.

The sooner we all accept this the smoother the transaction will go.  It’s hard enough getting an FHA or Conventional loan in Fort Lauderdale and South Florida to have to add arguing back and forth about why something is needed.  There is a reason for everything, believe me.

Many don’t understand why a borrower’s tax transcripts are pulled and why it must be done or why they must be stamped by a local IRS office.  It’s because you can give me a tax return with higher income and get that return Amended or file a different return with less income and a larger tax refund.

Make sure to read this Blog post “Does Your Lender WANT to Say “Yes?”

Fort Lauderdale Home Prices

This is a must read from KCMBlog.com because home prices are local and depends on where you are buying, the schools, etc.

“Prices of properties in your region will not be determined by the different price indices. Prices will be determined by the supply of homes available in ratio to the demand for those homes in your area. Whether you are buying or selling, check with a local real estate professional to help you analyze these numbers.”

http://kcmblog.com/2011/06/06/are-home-prices-headed-up-or-dow/

An FHA or a Conventional Loan for Your Fort Lauderdale Home?

I have written about this in the past and showed you how you can save more money by going with a Conventional loan over an FHA loan.  The reason is that FHA has a one time Upfront Mortgage Insurance Premium (UFMIP) charge of 1% of the loan amount and the monthly mortgage insurance is more costly.  In Fort Lauderdale and all of Florida you have to have a higher credit score in order to get a Conventional loan with less than 20% down which is typically a 680 middle credit score.  In order to get the cheapest monthly mortgage insurnace premium you will want a 720 or higher middle credit score. 

Another advantage of the Conventional loan is that a seller and their listing agent tend to like a buyer to be getting Conventional financing over an FHA loan.  I do not pretent to be a real estate agent so make sure to always consult one.  If you need a referral for a great real estate agent just give me a call or send me an email.

The one advantage of an FHA loan over a Conventional loan other than the fact that FHA’s loans aren’t as credit score driven is that they are assumable.  That means as long as someone qualifies they can take over your loan.  This could come into play for someone who is buying now with interest rates at historic lows and when they go to sell in 5 to 10 years it is possible that they could get a premium on the sale of their home depending on how high rates are at that time.  This is speculation but I think a buyer should be aware of this option and this is the job of their mortgage professional to make them aware. 

I feel if you can get a Conventional loan that it is probably the better option for a buyer but everyone’s situation is different so it should be viewed on a case by case basis.

Why You Need A True Professional To Sell Your Home In Fort Lauderdale, Florida

You get what you pay for in life and even with all of the scandals and Ponzi schemes out there you would think everyone would be a little more careful and do some extra research.

Below is a great article on why you need an expert when selling your home and the same should be said for when you are buying a home.  If you need a good realtor in Fort Lauderdale, Florida to help you sell or buy a home give me a call or shoot me an email.

You need an expert guide if you are traveling a dangerous path

The field of real estate is loaded with land mines. You need a true expert to guide you through the dangerous pitfalls that currently exist. Finding a buyer willing to pay fair market value for your home at a time that there are mass inventories of foreclosures and short sales will take a true real estate professional. Finding reasonable financing can also be tricky in today’s lending environment.

You need a skilled negotiator

In today’s market, hiring a talented negotiator could save you thousands, perhaps tens of thousands of dollars. Each step of the way – from the original offer, to the possible re-negotiation of that off after a home inspection, to the possible cancellation of the deal based on a troubled appraisal – you need someone who can keep the deal together until it closes.

http://kcmblog.com/?p=8109

Take Out A Big, Long Mortgage In Fort Lauderdale

I try to give the best advice I can to my clients anytime I speak to someone about a mortgage in South Florida.  I feel you never want too much money tied up in any one asset.  With interest rates at historic lows you can put your money to better use along with making sure you have 6-12 months of money set aside in reserve, make sure you are always maxing out your retirement, and the list goes on.

The reason I think for most it is better to take out a 30 year fixed rate mortgage even though the interest rate is a little better on a 15 year fixed is because you can always make a 15 year fixed payment on a 30 year fixed mortgage but you can’t make a 30 year fixed payment on a 15 year fixed mortgage.  The future is too unpredictable and you never know if you need to replace something, put a new roof on, etc.  There are additional costs that come with owning a home.

The article below from the New York Times points out how people just aren’t saving enough to get their 401(k) match which is crazy.

Of the two million 401(k) participants evaluated, 39 percent were not saving enough to receive their employer’s full matching contribution (or they weren’t saving at least 5 percent of salary in companies with no match), up from 33 percent in 2008. Younger workers are even more likely to give up the free cash: 47 percent of participants under age 40 did not save enough to receive the full match, compared with 53 percent of workers under the age of 30.

http://bucks.blogs.nytimes.com/2010/10/06/workers-not-saving-enough-to-get-401k-match/

Reasons To Buy A Fort Lauderdale Home

I have said over and over again that owning a home shouldn’t be viewed as an investment but as a lifestyle. Owning a home isn’t for everyone but if you plan on staying in the same place and are confident with your continued employment now is a great time to buy. It’s especially true in Fort Lauderdale and South Florida where home prices have come down dramatically and interest rates are at historic lows.

I could not have said it better then they did at KeepingCurrentMatters.com:

The Most Important Reasons to Buy a Home

When we talk about homeownership today, it seems that the financial aspects always jump to the front of the discussion. However, the study shows that the four major reasons a person buys a home have nothing to do with money. The top four reasons, in order, are:

• It means having a good place to raise children and provide them with a good education
• You have a physical structure where you and your family feel safe
• It allows you to have more space for your family
• It gives you control of what you do with your living space (renovations and updates)

http://kcmblog.com/2011/05/23/national-housing-survey-what-america-thinks/

Buying A Home & Building Wealth

Here is a very powerful statistic for owning a home:

Renters have only a fraction of the net wealth of owners. Near the peak of the housing bubble in 2007, the median net wealth of homeowners was $234,600—about 46 times the $5,100 median for renters. Even if homeowner wealth fell back to 1995 levels, it would still be 27.5 times the median for renters.

Owning a home isn’t for everyone but there are pros and cons to both owning or renting so make sure you know what they are before buying.

http://kcmblog.com/2011/05/11/homeownership-building-family-wealth/

Buying versus Renting a Home

I continually tell people now is a great time to buy for some people but not everyone. If you are confident that you will continue to be employed, you understand the costs of owning a home because it’s not just a mortgage payment, and you plan on staying in that home or holding onto that home for 10 years then it is a good time.

Below is an article from they NY Times that is worth reading. I have highlighted what I have found to be the most important part of the article:

As this year’s spring buying season nears its peak, the relative merits of renting and buying are closer than they have been since the housing bubble began inflating almost a decade ago. So the best single piece of advice for most people is to make a decision based mainly on their stage of life, rather than on any complex financial calculations.

If you think you are ready to settle in one place for at least five years, if not more, buying often makes a lot of sense. That’s why I bought my first house, in the Washington area, a few years ago, despite thinking local prices remained high.

But if the chances are good that you will move again in the next few years, renting is usually the better bet. The various closing costs, including real estate agents’ fees, are just too high. Owning a house also makes it much harder to move when you want to because selling a house is complicated.

http://www.nytimes.com/2011/05/11/business/economy/11leonhardt.html?_r=2

Knowing The Mortgage Basics Can Save You Money

That was the headline in the Sun Sentinel article below. I don’t agree with everything that is in the article. The most important part of getting a loan is to make sure you are dealing with an expert who will get your loan closed and deliver what they promise. Anyone can quote you any rate and a lot do just to get you in the door.

You don’t need to be prepared to put down 20% and I actually like to recommend to put down less money because I want to make sure you have money in reserve after closing since there are additional costs that come with owning a home.

I agree with the article on property insurance, title insurance, making sure you get a good faith estimate, and everything else below that.

http://www.sun-sentinel.com/news/local/fl-ten-mortgage-basics-2-20110506,0,4778361.story

Take The Mortgage Quiz

Test your knowledge and find out how much you really think you know

http://www.zillow.com/mortgage-rates/quiz/