Your Path to Home Ownership: Obtaining a Mortgage

You can look and dream all you want, but the fact of the matter is that a home mortgage is usually what separates most buyers from homeownership. It is very important to have a firm understanding of the mortgage process before you dive into a home search for a St. Johns County property. And to do so you need to go through a specific process. Here’s how it usually plays out:

• A trip to a lender – Before you even begin looking, there are two things you need to find out: (1) if you can be approved for a loan; and (2) how much of a loan you qualify for. A qualified lender can help you figure out both of these things, so it is important to head straight to a lender before doing anything else. Once the lender has pre-approved…

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Purchase a Fixer-Upper with FHA Loan Funds

Are you in the market to buy a home for sale in St. Johns County?  Are you willing to put a little “sweat equity” into a home for a lower purchase price?  If yes, then an FHA insured HUD 203(k) loan may be just the thing for you.  If you qualify you could be approved for a loan equal to the selling costs, and the estimated costs of repair and remodeling. 

There are many reasons why a home may be in disrepair.  The age of the home, or it may have been unoccupied for a length of time causing the property to wither.  Or, perhaps an owner simply ignored maintenance issues and would now rather sell than fix the property.  In any case, a fixer-upper home can be a good start for an individual or family willing to invest the time and effort in a St. Johns…

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How You Can Qualify For a FHA Loan

You may want to purchase Jacksonville property but you have doubts about your qualifications.  You may think you don’t earn enough money, or your credit score is too low to qualify for a loan. Possibly you have experienced a foreclosure and even a bankruptcy in the recent past.  In your mind you have about as much chance of owning a home as you do of owning a private island in the South Pacific.

But you could be mistaken.  An FHA guarantee allows more potential home owners to be approved for a mortgage with less stringent requirements.  The government wants you to own property, and it is willing to back up the banks who lend money so that the economy continues to thrive. 

Since qualifying for a FHA loan is more flexible than a…

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New Expectations in the Mortgage Market

The vacillation of the stock market is being seen in the mortgage market in their rates, terms and timing.   You've probably heard that lenders have been strengthening their guidelines requiring higher credit scores for the best rates and/or bigger down payments from borrowers.   You might of heard that lender are changing their programs more regularly. But have you heard of buyers going to the closing table and the lender no longer keeping to the terms that were offered?  I am being told that it is happening.   In addition, I am just being told that the rates the lenders are charging can change up to 4 times a day!  So if your mortgage broker calls you with a great rate and you don't lock in ... you can pretty much be assured that the…

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Unravelling the Confusion of Closing Costs

 In comparing loans for your new Jacksonville home, keep the following in mind.  Closing costs are split into two main categories: the closing costs controlled by the lender which vary from place to place and closing costs not controlled by the lender that will not be negotiated. 

The Process

You will first obtain a "Good Faith Estimate" of closing costs when talking to a mortgage lender.  It is your right to receive a copy although they may send it to you within three business days of your application.

Remember, the mortgage lender is not the only one charging all of your final closing costs, nor do they know what all the costs will actually be. They will normally give you a higher end estimate based on an educated guess from…

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Reduced Closing Fees, No Closing Costs, Seller Will/Won’t Pay - Did You Count the Closing Costs?

Closing Costs are those pesky things that you do not always think about up front when looking for a home or even selling one.  Part of understanding closing costs and how they are determined has to do with governmental taxes, fees for recording of the new deed, fees for the title search to verify that the seller has clear title to sell.  Others may be ‘discount points’ for your loan.  In any case, getting an estimate at the beginning of the process is the best you can hope for. Often times, although a trained professional can perform a close estimation process, even your realtor will not know the exact bottom line until the paper is ready to sign and you have to put the money on the table.

Closing Costs for the Seller

Easy. They take the closing costs…

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Look Into the Crystal Ball for Mortgage Interest Rates

Want to Know Where Interest Rates Are Heading?

Knowing whether to lock your rate or play the market is always a hard decision.  You should discuss this decision in depth with your mortgage lender or broker so that you can get all of your questions answered.  However, to get a jump start on your decision making this is a quick and dirty way to figure out if interest rates will be going up or down.

First, Don't Watch the Following Indicators:

• Today's Headlines

• Last Week's Data

• Yesterday's Data

• 10-Year Treasury Note

• Talking Heads on the News

As the attached article details the 10 Year Treasury Note was up 81 basis points but mortgage rates rose .25%.  So if you were following the 10 Year Treasury…

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