What Is A Rate Lock?

 

If you are buying a home with a loan in the South Florida area you may have heard of something called a rate lock from your lender.

Mortgage rates change constantly through an unpredictable combination of government policies and economic conditions. This video explains this common term called ‘rate lock.’

A “Rate Lock” is a guarantee that a lender will honor a specific combination of interest rates and points for a given period of time. A lock protects a buyer from rate increases but commits them to a higher rate if mortgage rates fall below the locked rate.

As of 2014, rate locks aren’t usually an option until a purchase offer for a specific property – new-home or resale – has been accepted by the seller. The borrower’s credit score, the loan-to-value ratio property type, location and other factors plus, of course, market rates and market conditions will also affect rate-lock decisions.

Decide whether to lock or “float” based on your capacity for risk and your best rational knowledge about construction and closing schedules. If your rate lock expires an extension might be available but both you and the lender will be looking at current mortgage rates to decide the best option.

At All Florida Title we care about helping you stay informed throughout your real estate transaction. Have questions? Give us a call at at 954-566-2200.

In case you missed it, check out our last All Florida Title Company post: Are There Special Mortgages For First Time Homebuyers?

Are There Special Mortgages For First-Time Homebuyers?

 

Thinking about buying a home for the first time in South Florida?

Yes. Like the video shows, lenders now offer several affordable mortgage options which can help first-time homebuyers overcome obstacles that made purchasing a home difficult in the past.

Lenders may now be able to help borrowers who don’t have a lot of money saved for the down payment and closing costs, have no or a poor credit history, have quite a bit of long-term debt, or who have experienced income irregularities.

At All Florida Title we care about helping you stay informed throughout your real estate transaction. Have questions? Give us a call at at 954-566-2200.

In case you missed it, check out our last All Florida Title Company post: What Steps Need To Be Taken To Secure A Loan?

What Steps Need To Be Taken To Secure A Loan?

 

Looking to secure a loan for the purchase of your South Florida property?

You’ll see some pictures in this video to help you remember later, but the first step in securing a loan is to complete a loan application.

To do so, you’ll need the following information.

  • Pay stubs for the past 2-3 months.
  • W-2 forms for the past 2 years.
  • Information on long-term debts.
  • Recent bank statements tax returns for the past 2 years.
  • Proof of any other income.
  • Address and description of the property you wish to buy.
  • A sales contract on the home you want to buy.

During the application process, the lender will order a report on your credit history and a professional appraisal of the property you want to purchase. Each lender has their own criteria so be sure you understand fully what is expected from you to make the process as smooth as possible.

At All Florida Title we care about helping you stay informed throughout your real estate transaction. Have questions? Give us a call at at 954-566-2200.

In case you missed it, check out our last All Florida Title Company post: All Florida Title Company’s Top 5 Tips to Help You Close More Sales in South Florida.

What Is An Appraisal?

 

Getting a home appraised in South Florida?

Every house is unique; appraisers are trained and licensed for expertise in putting a value on properties.

Appraisers don’t work for the buyer or the seller;  their primary mission is actually to protect the lender who’s risking money against the home’s value.

Appraisers have to weigh factors about the property and location – including size, condition and comparable properties – to appraise its current value.

They know how to focus on conditions that affect value; dishes in the sink don’t; damage and neglect do.

Appraisals lower than the proposed purchase price can affect transaction details. The seller might have to lower the priceor the buyer might have to increase down payment or fund additional escrow.

Appraisal seems a lot like inspection, but they’re not the same.

You can think of it this way:

Appraisers report on value to the lender.

Inspectors report on condition of the house and major components to the buyer.

So – expect both appraisal & inspection in your transaction.

At All Florida Title we care about helping you stay informed throughout your real estate transaction. Have questions? Give us a call at at 954-566-2200.

In case you missed it, check out our last All Florida Title Company post: How Can The FHA Assist Me In Buying A Home?

How Can The FHA Assist Me In Buying A Home?

 

Buying a home soon in South Florida? An FHA loan maybe worth exploring.

Remember these points from the video:

The FHA works to make homeownership a possibility for more Americans.

With the FHA, you don’t need perfect credit or a high-paying job to qualify for a loan. The FHA also makes loans more accessible by requiring smaller down payments than conventional loans.

In fact, an FHA down payment could be as little as a few months rent. And your monthly payments may not be much more than rent.

At All Florida Title we care about helping you stay informed throughout your real estate transaction. Have questions? Give us a call at at 954-566-2200.

In case you missed it, check out our last All Florida Title Company post: How Can I Keep Track Of All The Homes I See

What Factors Affect Mortgage Payments?

 

Curious about what factors can impact your mortgage payments on that property you are looking to buy in the Fort Lauderdale area?

Well, as this story shows, the amount of the down payment, the size of the mortgage loan, the interest rate, the length of the repayment term and payment schedule will all affect the size of your mortgage payment.

Below is a breakdown in bullets:

  • down payment
  • loan size
  • interest rate – fixed or adjustable
  • repayment term – how long
  • payment schedule – how often

all affect the size of your payment.

At All Florida Title Company we believe an informed client is a happy client. Want more explanation on mortgage payments? Give us a call at 954-566-2200.

In case you missed it, check out our last All Florida Title Company post to see if the TRID rules apply to your real estate transaction.