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Applying for a Florida Mortgage
Being able to buy a house and reside in sunny Florida is a dream for many individuals and families. And why wouldn’t it be- with temperate weather, pristine beaches, no state income tax and a variety of other things to do, who wouldn’t want to live there? But due to all these reasons, the market can be quite expensive, so you need to do some prior proper planning before buying a house.
Your Current and Future Needs
If you are single and plan on staying that way for awhile, a nice ‘starter’ home may be for you, or perhaps even a condo, which are quite popular in most parts of Florida. However, if you are a newlywed and plan to start a family one day, you might want to try to invest in a larger house and mortgage that will fit your future needs instead. While starter houses are nice, if you plan on starting a large family within five years, you may be better in the long run buying a family home. Sitting down and thinking about your future will serve you well in the long run when it comes to housing mortgages.
Location, Location, Location
More than perhaps any state other than California, location is a big deal in Florida. Housing costs can fluctuate from a few hundred thousand to over $20 million, depending on- you guessed it, location. Where in Florida you want to live will greatly determine your housing costs and what kind of mortgage you apply for. For instance, if you like the nightlife and a bustling cityscape, then perhaps Miami is your style. If you prefer something more family-oriented, Orlando could be your speed.
Mortgages to Fit Your Needs
So now that you know how large (or small) of a property you want to buy and where, it’s time to start looking for a Florida mortgage. Your income and past credit history will greatly affect your loan status, interest rate, the size of the loan and how long of a mortgage you qualify for.
If you are a first-time buyer and have no credit, you still have a lot of options. In terms of Florida mortgages, new credit can still yield you a great interest rate, or even an ARM. ARM stands for Adjusted Rate Mortgage and can save you money in the long run, since your interest rate will fluctuate in order to take advantage of more favorable mortgage rates. Another great thing about new credit is that you often get pre-approved, meaning you can bid on a house or make an offer without worrying about whether you can get approval for that amount.
If you have bad credit, you may still qualify for a Florida mortgage. Even with mediocre or bad credit, several lenders may still give you a mortgage based on your work history. Depending on the size of the potential loan and how bad your credit is, you may also be asked to put up collateral as well, and to prove that you are making good-faith payments on any or all delinquent accounts that are causing the bad credit.
If you have excellent credit and a good job history, the sky could be the limit for you. With some of the more posh Florida homes going for more than a cool million, you may need that type of limit, too! With this type of credit, your mortgage will often be at a fantastic rate and approval should be relatively easy and usually based on your income.