My Tips to a Great Mortgage
As one of our companies top Gay Ft Lauderdale Realtors I know that it can be a little overwhelming for Gay and LGBT home buyers when they are thinking about getting a mortgage.
There are so many competing vendors offering mortgages as well as other factors to consider least of all being your credit score.
In this guide I discuss the steps on how to get a “great” mortgage
Your Credit Report
Your credit score should be your first starting point in the process of looking for a mortgage.
Your credit report is the basis most lenders will use to determine if you qualify for a loan and what interest rates you will get charged.
Get a copy of your credit report and review it – there are many good credit report companies including creditkarma.com – try to avoid giving out your credit card information as you may find that you are billed.
FICO scores are frequently used to determine your credit worthiness.
The FICO Score is the standard credit score used here in Fort Lauderdale and across the US. In fact it is used in more than 90% of lending decisions.
It’s your true credit picture The FICO Score is used to determine how much money you can borrow, and how much interest you’ll pay.
A strong FICO Score can give you access to the best interest rates, loans, rebates, and premium credit cards.
A higher credit score say at 730 could mean a mortgage with a 4.5% interest rate, while a lower credit score say at 530 could mean a mortgage with a 7.5% interest rate.
On a $100,000 dollar loan a 3% difference in interest rates could cost you $2400.00 per year – so on a $300,000 dollar home this could amount to an additional $7,200.00 in interest you have to pay per year.
So my advice as a Gay Fort Lauderdale Realtor is that you address and resolve any credit issues you may have before applying for a loan. Working with a professional company that helps you review and then improve your credit score can actually get you good results quite quickly.
Mortgage Lenders / Brokers
Once you are ready to proceed the next step is to shop around – look at different mortgage lenders AND consider meeting a couple of mortgage brokers (individuals and agencies that arrange financing from a variety of lenders) banks, credit unions.
Here in Fort Lauderdale and across Florida just like us Ft Lauderdale Realtors – Mortgage brokers also need to be licensed – which is a great safe guard.
A nice factor about using a mortgage broker is that you don’t pay for them – the bank pays them a fee/commission when they originate a mortgage.
There are many mortgage types – and a good mortgage broker will discuss and give you options.
Make sure you ask lots of questions – like what will my monthly payment fees be, what are the costs of the mortgage, what happen if I sell the home and want to end the mortgage early – what if any extra costs are there.
As a Fort Lauderdale Realtor – I suggest to my Gay and LGBT clients that they try to avoid adjustable rate mortgages. With and ARM mortgage if interest rates rise, so will your mortgage payment. If interest rates fall, your payment will stay the same or it may decrease but only slightly.
The point here with our low interest rates is that with an ARM If there is a huge spike in interest rates, you could stand to pay thousands more in interest.
When looking for the right home loan make sure you try to choose the loan that gives you the best terms AND the lowest interest rate – as discussed above a percent or two in interest rates can save you thousands of dollars.
While some realtors may take all about getting a deal in buying a home – and yes that is a bonus if it happens – over the course of a 20-30 year mortgage the type of loan you get and your interest rate you pay can be far more important than saving $7000.00 off the purchase price!
Once you have found a company / bank that you are comfortable with get pre-approved for a home loan
Remember to make sure you bring all the necessary paperwork such as any investment information, your pay stubs, tax returns and any other specific documents – if you are using a mortgage broker they will guide you on this.
Once you have your mortgage all preapproved you are now truly ready to start looking for a great gay fort lauderdale realtor / gay real estate agent to help you find the home/condo of your dreams.