Florida Real Estate Blog - Financing & Mortgages

What Is Amortization? How Much Am I Really Paying for a Home?

You may be ready to buy a home. You know that you need a low interest rate on the home loan. You know you need a down payment. You even know what to expect when it comes to the monthly payment. But have you taken the time to consider what amortization is? Mortgage loan amortization is simply a term that discusses how much of the loan you are going to pay in principal (the amount you actually borrowed) compared to interest ( the fee for doing that borrowing.) It is important to understand what this means before you buy a home.

Your Monthly Payment

When you work with your mortgage lender, he or she will likely talk to you closely about your monthly payment. He or she will break down the amount you'll pay each month. However, you'll also want to see…

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Boost Your Credit Score Before Buying Your First Home

Your credit score is one of the most important numbers you'll need to consider when buying a home. It is one of the key factors lenders look at when deciding whether or not to lend to you. Don't get hung up on the very specific number, but do spend the time working to improve this number as much as possible. Even just a few ticks upward can help you to see a better interest rate and loan availability than you would have had. The following tips can help you to make that possible.

• Get a copy of your credit report. Check it over. Ensure it is accurate and remove any outdated negative information. Never close an old credit account, though, as this can negatively impact your score.
• Pay down your debt. Don't add to those credit cards right now. Pay…

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Should You Pay Off Your Debt Before Buying a Home?

When it comes to buying a home, one of the most important steps you can take is to reduce your debt. Debt from credit cards, student loans, and other debts can lead to significant concerns for lenders who you may be applying for a loan through. In short, lenders want to know that you can make all of the required debt repayments for your mortgage. If you have a great deal of debt already, you may struggle to make your monthly payments, putting the lender in a worrisome position. However, paying off all of your debt may not be a good thing.

Pay Down Debt

It is a good idea for most consumers to work to pay down their debts. That is, you should be avoiding adding to any debt that you have. By paying down this debt balance, you will be creating more gaps…

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5 Tips for Saving Money for a Down Payment

Your goal is to purchase a home and, in doing so, you know you need the largest down payment you can. Most lenders now require some level of a down payment. This could be between three percent, if you are getting an FHA loan, up to 20 percent or more, for a conventional loan. Saving that amount of money can seem challenging, but a few tips can help you to do just that.

#1: Go to a Cash Flow System

Don't use your credit cards. Realize you spend more when you use credit, both in terms of buying more freely and in paying interest. Moving to a cash only system, where you buy what you need to only with cash on hand, can help you to save significantly.

#2:  Make It Automatic

Don't trust yourself to transfer a set dollar amount from each paycheck into…

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What Does Pre-Approved Mean?

When it comes to buying a home, your first step is likely to gain pre-qualification. This step is important, mainly for your benefit. Once you talk to a mortgage specialist, he or she will gather information from you, such as income, expenses, and credit information. The goal is to find out how much of a loan you can obtain as well as what you are likely to pay monthly for that loan. Pre-qualification is just the start, though. Before you start shopping for a home, or during the process, you'll need to go one step further to pre-approved.

What Does Pre-Approved Mean Really?

A home buyer that is pre-approved is one that has the financial information provided by them verified. For example, instead of just asking for your income information, the…

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Lost Your Home to a Foreclosure? When Can You Buy Again?

The circumstances were not good for you a few months or years ago. You lost your home to a foreclosure. The lender forced the foreclosure because you didn't make payments on your loan or the taxing authority auctioned your home off. You feel overwhelmed and frustrated by the entire process. Perhaps you've moved in with someone else or you've been renting since then. Nevertheless, you still want to buy a home. When can you do so? Will a lender even let you consider buying a home again?

Don't give up just yet. The fact that you had a foreclosure is important, but it doesn't mean you will never own a home again. It does mean you'll have to work harder at obtaining a loan and getting a low interest rate. Nevertheless, for many people who have gone…

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How Much of a Down Payment Should I Make?

The down payment on a mortgage loan is an important part of the process of buying a home. The more money you put down, or pay in cash for the loan, the less you will need to borrow. A down payment does more than just reduce your overall loan principal, though. It helps both the seller and the mortgage lender to know that you are a serious buyer. It can also help you to get a lower interest rate and to avoid costly fees. In short, the more money you put down, the less likely you are to walk away from your home through foreclosure or short sales. Lenders know this and encourage you to pay down as much as you can.

What Factors Affect How Much to Invest?

In some cases, you will need to pay a certain amount down on the loan. Some types of loan require a…

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What Is the Closing Process? What to Expect

The closing process is one of the most worrisome for home buyers. The problem is not so much about what you'll have to do, but what you don't know. If you are a first-time home buyer, the closing process can seem like a daunting one, with many papers to sign and many concerns to consider. When you have a trusted closing specialist by your side, the process can be less stressful for you. Nevertheless, it is critical for individuals who are about to step into this stage of the home buying process to fully understand what it means and what to expect.

What Are the Closing Costs?

A key component of the process is the closing costs. This is a term you'll hear from the day you apply for your mortgage until you get it underway. This is a term that applies to…

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How to Buy a Home as a Self Employed Individual

Being self employed can pose some level of risk to a lender. If you are planning to buy a home as a self employed borrower, you'll need to do some extra work to alleviate those concerns of the lender. The good news is that you can still get a loan. You'll just have to prove to the lender, like everyone else has to, that you can afford to make your mortgage payments. When you do this, you'll be able to find a loan that's right for your needs.

Prove Your Income

As a self employed individual, proving your income is the most important part of this process. You may not have accurate records or any records at all. Your income may change drastically from one time to the next. Or, you may not be sure you want to state just how much you earn. In short,…

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What Are the New Mortgage Lending Requirements?

Mortgage rules are changing. Today's home buyer will need to know what these changes are and how they impact their ability to purchase a loan as well as the types of loans currently available. You may initially think that this limits your buying ability, but in the long term, these changes will help ensure that home loans are safer for many people. Nevertheless, if you are buying a home, you need to know more about these new mortgage lending requirements and be ready for what they mean to you.

Self-Employed

One of the biggest challenges that will affect mortgage lending has to do with the self-employed. The new requirements will require more focus on proving earnings to ensure that the borrower actually has the funds available to maintain payments on…

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