Knowledge is power, and the more you know about Florida mortgages, the better off you’ll be when buying a new home. Here are some common mistakes people make when applying for a mortgage. Avoid these, and you’ll make the process much smoother.

  • Don’t Throw Away Your Pay Stubs: You’re going to need pay stubs, bank statements, tax returns, and more when applying for a loan. If these are on paper, scan them to make it easier to send to your lender. If you’re self-employed and your income is erratic, you may want a co-signer who has income that’s documented by W-2s.
  • Don’t Change Your Credit: Your credit score is a critical part of your loan application, and any changes to your credit, like opening or closing credit cards or buying big new items, could hurt your credit score, particularly after you’re pre approved.
  • Don’t Move Your Money: Cashing in investments, buying a certificate of deposit, or taking withdrawals from retirement accounts can cause your lender to balk, and you could spend a lot of time explaining your transactions, or even lose your loan. If someone is giving you part or all of your down payment, get it into your bank account at least two months before you apply for a mortgage, or you’ll have to go through the process of proving it’s a gift.
  • Don’t Pay High Mortgage Insurance: A lot of people focus on mortgages insured by the Federal Housing Administration (FHA), because those have long had low down payments of 3.5 percent. Now, though, Fannie Mae and Freddie Mac are backing mortgages with down payments as low as 3 percent, and their private mortgage insurance (PMI) premiums are generally lower than FHA loans. Those premiums are based on your credit score and down payment, but you could save a lot of money.
  • Don’t Start Shopping Without a Full Pre Approval. Getting a full pre approval, that relies on your actual credit score, debts, and income, lets your lender give you more accurate terms. And sellers often prefer pre approved buyers.

Ask an Expert

When you’re planning to buy a home in Florida, talk to a Florida mortgage expert to make sure you avoid mistake that could cost you money or keep you from getting the Florida mortgage you need. Call Embrace Home Loans at 407-733-6425 or browse our website to learn more tips to help you get your dream home.

 

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