Orlando VA Streamline IRRRL Refinance Loan

Orlando VA IRRRL Refinance

The Orlando VA Streamline IRRRL Refinance Loan program is designed specifically for veterans, and is a government help program to aid homeowners who are underwater and have kept up with their mortgage obligations. The best feature of the program is the fact that it enables veterans who fulfill the eligibility criteria to refinance their house into a lower interest rate with ease.

What is VA IRRRL Program

Also known as VA “Streamline Refinance” this mortgage refinance program is offered by VA approved lenders in Florida, and is guaranteed by the VA if the mortgagor (homeowner) defaults on loan payments. This is a popular refinance option because the program helps streamline the qualification process and limits the amount of paperwork involved. Other notable features of VA loans include flexible requirements, no need of private mortgage insurance (PMI), and highly competitive interest rates.

VA IRRRL Basics – Orange County, Orlando

The VA Mortgage Interest Rate Reduction Refinance Loan (IRRRL) brings the VA mortgage interest rate low by refinancing the existing VA Florida mortgage loan. There could be a significant reduction in monthly mortgage payment if lower VA mortgage interest rates are obtained.

  • Loan assumptions in VA IRRRL are not acceptable.
  • It is necessary that the homeowner has timely mortgage payments for the last twelve months, and must be current at the time of refinancing to obtain this loan.
  • IRRRL refinance can be done with zero out-of-pocket money by adjusting all costs in the new loan,  or by creating the new loan at a slightly higher interest rate to make sure the lender pays the cost.
  • The homeowners can’t accept any cash back. Homeowners that do have some equity and want to “cash out” some money can learn about the 100% VA Cash Out here.
  • Most the time a new appraisal report or termite WDO report of the house is necessary.
  • This refinance program is very “streamline” in regards to paperwork and time.  Easy paperwork with fast closing times.

IRRRL Eligibility Criteria

The eligibility criteria of VA IRRRL are similar to the criteria for a home purchase VA loan. Normally, a service of more than 90 consecutive days of active duty during wartime or 181 days of service during peace time is required. The National Guard and Reservists veterans must have served for six years minimum to be eligible for this loan. Conditionally, the surviving spouses of the veterans who die in the line of duty, or from a service related disability may also be eligible for VA IRRRL. Also, in order to receive a VA IRRRL, you must have an existing VA loan.  Finally,  a new Certificate of Eligibility (COE) is not required.

Advantages of the VA IRRL Program

Listed below are some of the advantages of the VA IRRRL program:

  • Interest rates are low, depending on your original loan rate, it may be possible to save a lot.
  • Homeowners can often times skip a few mortgage payments while going through the refinance process.
  • Even if the property values are going down, no appraisals or inspections are required.

Call us today at ph: 800-871-2636.  We are available to assist you 7 days a week.  For quick service please submit the “Request Information” form at the top right side of your screen.  Mobile users can find the short Request Info Form here.

FHA Streamline Refinance Mortgage

Florida FHA Streamline Refinance

 

An FHA loan is defined as a loan that is insured by the Federal Housing Administration. In principle, the federal government covers loans for the lenders that are FHA approved to make sure their risk of loss is reduced if a borrower fails to pay their mortgage payment.

FHA Streamline Refinance on mortgage, in a nutshell, is the easiest way to refinance an FH loan. What differentiates between a traditional refinance and an FHA refinance?  The streamline allows the borrower to refinance without going through all the hurtles often seen with other refi programs. A new appraisal is often times not required as loan to value (LTV) is not important.  Let us take a look at FHA Streamline Refinance in detail:

What is an FHA Streamline Refinance

The Florida FHA Streamline Refinance is a unique refinance program that is solely available to homeowners with FHA insured mortgages. This is a “streamline” process as the name implies meaning less verification’s, less paperwork, no appraisal or home inspection. The program is formulated to reduce a homeowner’s monthly mortgage payment, or as a mean to refi out of an adjustable rate mortgage (ARM)  Advantages the FHA Streamline Refinance Mortgage

Eligible residents of Florida that currently have a FHA mortgage should remember a few things when applying for the program:

  • You are not obligated to go through the full normal mortgage paperwork process, like when the home was originally purchased. The only requirement is a timely mortgage history.
  • You are not required to verify as much in regards to income and assets.
  • You don’t have to pay any closing costs out of pocket. Often time the costs can be included in the new loan or paid by the lender in certain cases.
  • You are not obliged to pay for a new appraisal, home inspection, etc.  This saves in closing costs.

Why you should go for it?

This program is your government supported bailout. FHA Streamline Refinance rewards a responsible and hardworking homeowner by allowing historically low interest rates even if they are underwater on their mortgage, provided it’s not due to their own fault. These guidelines change often, so contact us for the latest requirements.  Homeowners also want to be aware of recent FHA mortgage insurance changes,  FHA mortgage insurance is going down for new all loans.  Low FHA interest rates together with the newly reduced mortgage insurance costs makes this a great time to refinance.

Call and communicate with one of the qualified Florida Mortgage professionals 7 days a week by submitting the “Request Information” form at the top right side of your screen.  Mobile users can find the short Request Info Form here.  Please also be sure to call ph: 800-871-2636 and visit www.FiveStarsMortgage.com for the latest mortgage info.

Serving:  FL & Georgia –  Tampa FL – Orlando – Jacksonville – Miami – Tallahassee – Gainesville – Ocala – Daytona Beach – St. Augustine – Spring Hill – Pensacola – Panama City – Destin – Sarasota – Naples – West Palm Beach – Deerfield Beach – Pembroke Pines – Fort Pierce

New USDA Rural Pilot Refinance

USDA Pilot Refinance

USDA Pilot Refinance

 

The new USDA Rural Pilot Refinance program is now available to eligible Florida borrowers who qualify to refinance their current USDA mortgage loans. This limited time program by Rural Housing ( RD) is offered through approved lenders and brokers and designed to give home owners a simple “streamlined”  way to refinance into lower interest rates.  The best part is the USDA Pilot program doesn’t require a new appraisal report, or home inspection report.  So homeowner that have zero equity, or even underwater home values can apply!  In addition to this the lender does not need to submit a new credit report except for determining the interest rate the home owner receives.  USDA mortgages, like other home loans, have tiered interest rates based on credit score. Generally credit scores over 720 receive the lowest USDA interest rates, while credit score under 640 may be 0.25- 0.5% higher rates.

USDA Refinance Benefits:

  • Lower payment
  • Rate is lowered by a minimum of 1%
  • Closing costs can be financed / added to the loan so NO out of pocket costs to the home owner at closing
  • No appraisal or home inspection needed – saves on closing costs
  • Borrower does not have to credit qualify or debt ratio

Eligible Borrowers For USDA Pilot Refinance:

  • Home owner must currently have a USDA 502 Guaranteed Loan (regardless of original lender)
  • Meet current household income eligibility requirements see below ( this rule also applied when the loan was originally obtained)
  • Reside in an eligible rural area or an area that was eligible at the time of the original loan closing
  • Have made timely mortgage payments for the 12-month period prior to the refinance.
  • If you do have equity in your home, you cannot “cash out” any equity

Florida USDA Rural Income limits 2015

In regards to income limits – please add $480.00 for each dependent in the household. Please also note this apply to all income producing household members – even if they are NOT applying for the loan. Contact us if your income is close to the limit, as there are other deductions for certain child care and elderly. 

Again, this program is strictly for home owner that currently have a USDA home loan. If you have another type of home loan like FHA or VA, please contact us about the FHA streamline or VA IRRRL refinance. We can be reached Ph: 800-871-2636. Home owners can also send in the short “Request Information” form at the top right side of your screen.  Mobile users can find the short Request Info Form here.

New USDA RD Fee Chart 2015 -2016

2016 USDA Guarantee Fee

 

The new USDA RD Guarantee Fee structure has been set in regards to Rural Housing loans. The new Guarantee Fees start October 1, 2015 and will  be effective for Single Family Housing, 502 Guaranteed loans in fiscal year of 2016.  The new upfront guarantee fee will change from 2 percent of the loan amount to 2.75 percent of the loan amount.  The current annual fee monthly PMI of .50% will remain unchanged.   This annual fee is actually a monthly charge that USDA collects on all loans – think of this similar to private mortgage insurance or PMI. The upfront guarantee fee is a one-time fee that is charged by all government mortgage programs ( USDA, FHA, VA) and commonly rolled into the borrowers total loan amount.

Example:

Current guarantee fee on a $175,000 loan =  $3,500.  Total adjusted loan amount with guarantee fee = $178,500

New guarantee fee on a $175,000 loan starting 10/1/2015 = $4,812.50. Total adjusted loan amount with new guarantee fee = $179,812.50

This is a pretty big increase and will start for any USDA loans obligated on October 1, 2015 through September 30, 2016. The new higher fee’s will impact both USDA purchase and USDA refi programs (Pilot, Streamline, etc)

It’s a good idea of buyers / lenders to insure their package is received by USDA and in the system no later than the 2nd week of September in order to stay at the current 2% Guarantee Fee.  Keep in mind, it generally takes the lender a 2-3 weeks to get a package ready enough to sent to USDA for final approval.

Questions? We are available to assist you 7 days a week.  For quick service please submit the “Request Information” form at the top right side of your screen.  Mobile users can find the short Request Info Form here.  Please also be sure to call ph: 800-871-2636 and visit www.FiveStarsMortgage.com for the latest mortgage info.

New USDA RD Fee Chart 2015 -2016

Please note: If you have questions regarding an existing USDA loan already in process with another mortgage company,  you will need to speak to them directly for status, etc.

97% Conventional Program – 3% Down Payment

 

Five Stars MortgageIn the golden days of the real estate boom, 97% Conventional Mortgage Financing was readily available for South Florida home buyers and the programs weren’t so hard to find. Many mortgage lenders were even offering 100% financing in locations like West Pam Beach and Broward County which worked well for a while. Then the mortgage industry experienced bad declines the new rigid mortgage regulations changed everything and all but eliminated low down payment home financing options.

97% Conventional Mortgage Financing starting popping back up around December 2014 by Fannie Mae, through My Community Mortgage product and for a standard non-MCM Conventional Loan Product. Meant to help first time homebuyers who may not have the resources for a larger down payment, the program allows them to receive loans requiring little to no down payment. It is also great for homeowners whose homes have lost value since purchase but who are otherwise ineligible for the Home Affordable Refinance Program (HARP).

This program makes mortgages more accessible and affordable. Fannie Mae offers guidelines and tools that enhance the benefits of 97% Conventional Mortgage Financing. The flexibility of the program is what distinguish it from other conventional mortgage financing in the market.

‘97% Conventional’ LTV Highlights

  • The program provides Maximum loan to value (LTV), Combined Loan to Value (CLTV), and High or Home Equity Combined Loan to Value (HCLTV) is 97%.
  • Manufactured homes are not eligible for 97% LTV loans.
  • Cash gifts may be used for down payments and reserves.
  • It limits the upfront monthly costs of mortgages.
  • It supports the long term success of buyers.
  • Private Mortgage Insurance (PMI) cancels when the loan reaches 80% LTV.

97% Conventional LTV Home Buying Requirements

  • Only 30-year fixed rate mortgages are allowed.
  • Only available for low to moderate income families.
  • The program requires a minimum of 3% down payment.
  • May require home buyer education prior to loan closings.
  • Borrowers are required to pay Private Mortgage Insurance (PMI).
  • At least one of the borrowers on the loan must be a first time home buyer.
  • The loan must be used for a 1 unit primary residence (including Condos and PUDs).
  • Borrower must score more than 620 on the Loan Level Price Adjustment (LLPA) chart.

Other than these features, 97% conventional mortgage financing is quite similar to other conventional mortgage types. But because 97 %conventional mortgage insurance goes away at 80% LTV, it can become a better value overtime, especially if you have high credit scores. The higher your credit scores, the cheaper 97% conventional mortgage funding will be. You can check your eligibility for the 97% conventional program and buy your dream home with a down payment of just 3%.

Homebuyer that have questions or maybe want to get pre approved can submit the Request Information form at the top right side of your screen.  Mobile users can find the short Request Info Form here.  Please also be sure to call ph: 800-871-2636 and visit www.FiveStarsMortgage.com for the latest mortgage info.

97% Conventional Program – 3% Down Payment – serving South Florida including – Palm Beach County – Belle Glade, Boca Raton, Boynton Beach, Delray Beach, Highland Beach, Hypoluxo, Juno Beach, Jupiter, Lake Worth, Lantana, Loxahatchee, Manalapan, Palm Beach, Palm Springs, Riviera Beach, Royal Palm Beach, South Bay, South Palm Beach, Tequesta, Wellington and West Palm Beach. Broward County – Coconut Creek, Cooper City, Coral Springs, Dania Beach, Davie, Deerfield Beach, Fort Lauderdale, Hallandale Beach, Hillsboro Beach, Hollywood, Lauderdale Lakes, Margate, Miramar, Oakland Park, Parkland, Pembroke Park, Pembroke Pines, Plantation, Pompano Beach, Port Everglades, Sunrise, Tamarac, West Park, Weston

5 Steps to Buying a House

Florida Home SoldBuying a house can be a complicated process that can leave you drained. And if you are planning on buying property in Florida, these 5 steps will help you make this journey confidently and without much of a hassle. The home buying process may vary a bit depending on the real estate laws and customs where you live though.

  1. Review your financial health

Start with an audit of your finances. Don’t start looking for homes before you look at your savings. You wouldn’t want to find your dream house and later realize that its way over your budget. Keep a track of your spending each month. This will help you determine how much you can allocate to your mortgage payment.

  1. Get preapproved for mortgage

The first step is to understand the different financing options out there and choose the one that is best for you. Will you be applying for a 100% USDA loan, FHA loan or maybe a conventional loan. Take a look at all the loan programs here.  Once you pick your mortgage program you need to submit information such as; your savings, income and all the investments you have, to your mortgage banker/local bank. After reviewing this information, your banker / loan company will provide you with an amount that they can lend you so that you know the price range of the houses you should be looking for. Once you’ve qualified for the mortgage, you need to provide some financial documents to get preapproved for credit. The financial documents may include bank account statements, paycheck stubs, profit and loss statements (if you are self employed), list of assets, mutual fund statements, brokerage statements and a complete list of debts. Florida and Georgia homebuyer can certainly contact us to get the loan pre approval process started. Please submit the “Request Information” form at the top right side of your screen.  Mobile users can find the short Request Info Form here.  Please also be sure to call ph: 800-871-2636

  1. Find a Realtor

Once you’re sure about the amount of mortgage you are qualified for, it’s time to find a real estate agent. The home buying process is a maze of paperwork, inspections, pricing and negotiations, so it’s better that you work with professionals who can guide you. Look for a local Florida realtor who work with a team of people who can offer suggestions and carry out the operations successfully. The best part is that they are compensated by the seller of the house so it doesn’t cost you.

  1. Shop for your home

Look for homes within your price range and do take notes to help you in deciding later on. In terms of real estate, Florida offers a lot that can please you. Central Florida offers some of the best returns in Florida and is the hub of second home purchases and buy-to-let investors. The Gulf coast has magnificent white beaches, sapphire seas, and fine restaurants. Miami offers beautiful beaches, a consistent warm climate and fascinating contemporary architecture while many high-rise and downtown developments are in process. To the north Jacksonville is a very family friendly area with great schools.  Once you find your dream home in the neighborhood of your choice, you can make an offer. When you and the seller have settled on the price, you can move on to the next step.

  1. Close the deal

Even if you lender doesn’t require, still arrange for a home inspection before you finalize the deal. Check for any structural damage or things that may need to be fixed. Also get home insurance to protect your interests in the event of a catastrophe. Once you’re satisfied with the house and its condition, you can sign the deal. It may take a few days after the signing for your loan to be funded. When you get the loan, you’ll be the proud owner of your own house. Congratulations!

Buyers can connect with us 7 days a week by calling 800-871-2636 or visit www.FiveStarsMortgage.com

FL Jumbo Loans – Complete Guide

Florida Jumbo Loans

Florida Jumbo Loans

Who says you have to drain all your cash reserves to buy your dream home? Well, thanks to jumbo loans, a large and expensive single family home purchase mortgage, is now easy! You don’t always have to be a cash buyer to become a home owner in a pricey market. Read on to find out more about jumbo loan and eligibility requirements.

What is a Jumbo Home Loan?

Like the name suggests, a jumbo mortgage loan is a very large home loan. It is a loan that exceeds the conforming loan limit imposed by Fannie Mae & Freddie Mac (the 2 government sponsored agencies that buy loans from lenders). In most places in Florida, the conforming limit imposed by Fannie Mae and Freddie Mac is $417,000. However, this limit is greater in those places where the cost of living is higher. Fannie and Freddie are willing to guarantee loans up to the conforming loan limit, not beyond it.

If we take a look at Florida, conforming loan limit in counties like Broward, Manatee, Miami-Dade, Palm Beach and Sarasota is $417,000. But this limit is different and higher in Collier and Monroe – $448,500 and $529,000 respectively.

Benefits of a Jumbo Loan

Jumbo loans are ideal for Fla home buyers looking for high end homes. These loans are designed to simplify home buying in pricey markets by covering the full cost of the loan, so there is no need for borrowers to drain their cash reserves.

Once borrowers qualify for jumbo loans, there is no need to take out two or more loans to purchase. And just like conventional mortgages, jumbo loans can be obtained at a fixed and an adjustable rate- including short 10 or 15 year fixed rates to longer 30 year rate.

Though historically, the rate of a jumbo loan was higher than a conventional loan mortgage rate but not as much these days. The gap between conforming and jumbo loan has reduced significantly to spur home sales and economic growth, making jumbo loans extremely affordable for buyers.

Other perks of jumbo loans include:

  • No PMI (Private Mortgage Insurance) requirements with most lenders
  • Interest on loans up to $1 million is tax deductible

Eligibility Requirements for a Jumbo Mortgage Loan

Now let us take a quick look at the eligibility/qualification requirements for a jumbo loan. To qualify for a jumbo loan, a borrower should expect:

  • To make at least 20 percent of the purchase as down payment. The down payment for this loan is higher typically because there is no PMI requirement. In select cases a down payment of only 10% is required
  • Document your income – 2 year min history for self employed borrowers
  • The maximum debt-to-income ratio should not be more than 45 percent
  • Should have at least 6 months worth of reserve savings in his/her bank account after closing. The required reserve amount is sometimes 20 percent of the mortgage. Lenders like to see borrower’s reserves as it enables them to ensure that the borrower has the ability to make monthly loan payments.

Florida home buyers that have questions about Jumbo loans or current interest rates should contact us at ph: 800-871-2636.  You can also submit the “Request Information” form at the top right side of your screen for fast service.  Mobile users can find the short Request Info Form here.

FL Jumbo Loans – Complete Guide – serving Miami Dade, Naples, Sarasota, Key Largo, Pembroke Pines, Coral Gables, Boca Raton, Monroe, Broward and Collier County

Home Buying Process Jacksonville

Home Buying Process Jacksonville

Home Buying Process Jacksonville

Purchase a home can both exciting and stressful at the same time.  This is  especially true for Florida first time home owners that haven’t went through the process yet.  In this post we will discuss some steps that buyers can take to insure the process is as stress free as possible. Home buyers that have questions about the Home Buying Process Jacksonville can contact us direct anytime at ph: 800-871-2636

Home Loan Application  – Getting pre approved.

It all starts with contacting the Jacksonville mortgage company to discuss loan programs and getting your mortgage pre approval. During the loan pre approval process lenders will want to know a few basic things to start –   the city you want to purchase, the property type (single family home, condo, etc)  occupancy ( primary, second home or investment) and  mortgage type ( FHA, 100% USDA, VA or conventional)

There are many of loans available around Duval County and Jacksonville, so you should talk to detail about this with your loan advisor.  The mortgage company will also ask if they can check your credit report. This credit profile report will alert the lender to any credit/financial problems. If you’ve experienced any financial hardships in the past, you should explain that to the lender so they can provide the best solutions for you. Next, the lender will most likely ask you a few questions regarding other things such as employment history, address history, assets/bank savings, marital status, ownership of additional properties, and many other questions to help them determine your ability to repay the mortgage. This is standard procedure in the mortgage process, so please don’t be alarmed. The entire mortgage application process only takes about 30 minutes to complete.

Below is a list of other questions your loan officer may ask during the process:

Are you a first time homeowner?

A first time homeowner has not owned a home in the last 3 years, or is a recently divorced homemaker. Why is this important? Because there are many programs in Jacksonville that require a lower down payment, provide a lower interest rate, or even provide down payment and closing cost assistance to new first time home buyers.

Are you past or present Military?

Plenty of veterans around Duval, Clay and St. Johns County.  Many Veterans qualify for a special VA loan that requires no down payment! In most cases, it is easier to qualify for a VA loan when compared to other loan programs.  Becoming pre-qualified is an important step in the mortgage process to enable you to get into the right house with the right terms and conditions. Furthermore, getting pre-qualified helps you strengthen your position when negotiating with the seller as they now know that they have a qualified borrower.
Find and home and make an offer

Now you have found the perfect property you want and you are ready to make an offer. You must consider what sales price to offer, terms, seller concessions, earnest money, option fee, as well as closing and possession dates.

If you are in a sellers market, you will be able to negotiate very little. If you are in a buyer’s market, you will be able to get several concessions from the seller. It really just depends on the market you are located in. This is a process that can be best accomplished with the help of a competent and trusted Realtor. The Realtor is also very important because they should always have your best interests in mind when negotiating with the seller. This allows them to stay objective throughout the process even when you become emotionally involved.

Acceptance of the bid or offer

Acceptance occurs when all parties agree to the price and terms of the contract. At that time, the clock starts ticking to adhere to all details that are outlined in your transaction, home inspection time, appraisal time, etc. You should be sure that all changes are initialed, no matter how insignificant you feel the change is. Absolute agreement and clarity is the key to protecting your rights and expectations for your purchase.   This process is stipulated in your contract and should not be more than five days total from the time you submit the offer to the seller. It is important that this process moves along quickly. Once acceptance occurs, the next few weeks are filled with inspections, appraisals, and many other deadlines that you will need to meet to ensure a smooth closing.

Meeting All Deadlines –  Below is list of some of the things that will happen during this time period.

Title work

After all parties have agreed to the terms of the contract and the executed date is filled in, a copy of the contract and the earnest money must be delivered to the title company. The title company, a disinterested third party, must remain neutral throughout the transaction. They will carry out all the instructions of your contract and provide the title insurance. The address of the title company chosen will be on your contract, so you can communicate freely with them. Generally, your real estate agent will contact the title company for all key factors and they will review your final figures before closing. A good real estate agent can review the HUD-1 (settlement statement) and make sure you have not been incorrectly charged.

General Home Inspection

You have the right to do inspections any time prior to closing. Many homebuyers choose to get the property inspected during the option period. In case there are problems found, the buyer can terminate the contract. The option period begins on the executed date of the contract and normally lasts from 7 to 14 days.

If you feel there is a major item that must be addressed after the general inspection is done, your options are:

  • Terminate the contract within the option period.
  • Propose a lower sales price.
  • Request the seller do the named repairs.
  • Split the cost of repairs with the seller.

This is when a great Realtor comes in handy.

WDO (Termite) Inspection

If you are getting a loan, a wood destroying insect report may be required before closing. This report is filled out by a specially licensed inspector and is often done at the time of the general inspection to keep inspection costs down. If you order the general inspection with the termite inspection at the same time, you’ll most likely save yourself a trip charge. This inspection report states if there is a current infestation, there has been infestation, there are conducive conditions (areas that might attract), or the property has been treated. Please keep in mind that infestation in general is easily treatable.

Home Appraisal

The appraisal is required by the lender to insure the property’s market value and to certify the property meets required standards. Two important areas to focus on are the appraiser’s value and the lender-required repairs. Although the appraisal belongs to the lender, you typically pay the cost as required by the lender. The law entitles you to a copy of the appraisal before closing.

Loan Approval

After the underwriter has reviewed your file, they will approve and send it to the closing department. Loan approval is the full and final approval to get your property closed. Sometimes the loan approval is conditional and you must provide documented proof that either your previous home has closed or a receipt of a paid account. Either way, the loan approval moves you one step closer to owning your property. One major factor that lenders consider when approving your loan is your credit profile.

Home Repairs

All repairs are generally done after the loan approval. Sometimes a seller might agree to do them early, but don’t expect this until you have been completely approved for the loan. Repairs include lender-required repairs that must be done prior to the funding of the loan. Lender required repairs take precedence over all repairs, because the loan will not be approved unless they have been completed. Although the required repairs discussed are addressed in the contract, repairs that are needed after you are a homeowner should be a concern to you. Good real estate consultants should always recommend a residential contract to protect you in the coming year.

Re-Inspection if needed

After repairs are done, it is always recommended to re-inspect the property. This is often required by the lender as well if the repairs are lender required.  Most the time the general inspector you originally hired will look over the work for a nominal charge. This re-inspection trip should not be skipped. Allow yourself enough time before closing for the re-inspection of items where repairs had been requested.

Homeowners Insurance

Before closing on your VA loan you must obtain homeowners insurance. You will need to provide your insurance agent with the address, square footage, and age of the property. Some insurance companies ask for additional information that can be provided by your real estate agent. Your insurance will not go in effect until your loan has closed and funded. Your insurance premium will be included in your closing costs, so make sure you don’t pay for it up front.

The amount of your insurance premium is determined by the type of coverage needed:

  • Replacement versus actual cash value of items in your house
  • Replacement versus actual cash value of dwelling coverage
  • Deductible amount
  • Security system, deadbolts and smoke alarms
  • Discounts may be given if you use the same insurer for your auto insurance

Please remember that flood and earthquake damage are not covered by a standard homeowner policy. You may need to buy a separate policy to cover those types of risks and is depended on the likelihood of occurrence in your area. Flood insurance may be a good idea in Florida, Earthquakes are not likely.

Survey

A survey will provide a graphic account of the property you are purchasing. It will show the structure fence line, boundary lines, encroachments, and easements of the property. The buyer customarily pays for the survey, but the cost can be negotiated if the property includes acreage.
Final Details

During these final few days you will need to finish up any last minute details to ensure that you get the keys to your house the day of closing. This is an exciting time, so try to relax and enjoy the process knowing that your new house is just around the corner. Below are a few last minute things that you will encounter.

Closing

Closing time is the date and time set-aside for you to come in and sign the paperwork. Your real estate agent will coordinate the time and date convenient for you and the title company. As a buyer, you may want to close near the end of the month, so that you will minimize the number of days you must pay pre-paid interest. The other consideration is that most closings are scheduled for the last day of the month. A wiser strategy might be to close three days prior to the end of the month.

Funding

Funding occurs when all papers have been signed and all conditions have been met. Funding may occur on the day of the closing or on the next day. Careful planning will ensure that all expectations have been met. You will not receive the keys for the premises until the loan has funded, so plan to close early when there are definite time constraints.

Closing

After closing, your real estate consultant will give you the keys to the property and you will officially own your new home. Now just try to find some strong friends to help you move in!

Home buyers around Jacksonville that have questions should submit the “Request Information” form at the top right side of your screen.  Mobile users can find the short Request Info Form here.  Please also be sure to call ph: 800-871-2636 and visit www.FiveStarsMortgage.com for the latest mortgage info.

Tallahassee First Time Home Buyers – Tips On Buying

Tallahassee Florida First Time Buyer

Tallahassee Florida First Time Buyer

So, you are thinking of buying your first home in Tallahassee? Congratulations! Home buying is definitely a big achievement and deserves a celebration.

But wait! Before you start attending open houses and combing through real-estate listings – you need to know a few important things. If you are not a cash-buyer and require mortgage financing,  you must make sure that you qualify for a mortgage and find the best deal in the market. Taking out new home loan is probably going to be the biggest financial commitment you are likely to make, therefore, you need to make sure that you fulfill this commitment successfully.

Here are some of the best tips to help you buy your first piece of real estate and qualify for a mortgage.

  1. Examine Your Credit Reports

Your creditworthiness is directly proportional to your mortgage qualification and terms. No, this is not a scientific formula but it can truly increase or lower your chances of qualifying for mortgage on the terms you want. So, first things first, obtain your credit reports from all three credit bureaus and analyze them carefully. This will help you determine what your monthly expenditures are and what you can afford. A credit score of 620 is the minimum you need to apply for most home loans today ( USDA, FHA, VA, Conventional loans) and begin your property search. However, a score of lower than 620 can cause trouble, as you might get mortgage at a higher rate, if you even qualify at all! But don’t worry; you can give your credit score a boost by closing down derogatory credit card accounts and paying your bills on time.

  1. Work Out Your Budget

Before you apply for a mortgage, work out your budget. Here, you will have to be sure that you can borrow enough to cover the property purchase and still have enough money to cover all the associated fees and costs. This will help you understand what you can and cannot afford. Remember, buying a home on mortgage that you can’t afford will do you no good. Your inability to make mortgage payments timely will only damage your creditworthiness and eventually, in a year or two, you will end up putting your home for sale.

  1. Stick with the Same Job

Before approving your request, most lenders want to see you have been with the same employer for a decent length of time, generally 2 years in the same line of work. Switching employers is ok, as long as you remained in the same line of work and don’t have any extended gaps in employment.  Whatever you do, be sure to stick with you same employer after you get pre approved. Also be sure to tell your lender about any wage increase or decrease that happens after pre approval.

  1. Get Your Proof of Income

You will need paystubs, tax returns, W2’s  from your employer to provide it to the mortgage lender. This form provides a snapshot of your pay and tax deductions. It serves as a proof and gives lender the confidence that you will be able to keep up with payment and meet the debt to income ratio requirements.

  1. Pick a loan program

100% USDA Rural Home LoanFHA 3.5% down program, VA loan, Conventional home loan?  Leon County / Tallahassee has some great programs available to first time home owners.  Our loan specialists will carefully review your situation and needs and recommend the best program.

Follow these tips to increase your chances of qualifying for mortgage and realizing your home ownership dreams at a faster pace. New home buyers in Tallahassee can contact us  7 days a week to discuss details on getting pre approved.

Tallahassee First Time Home Buyers – Tips On Buying, Leon County First Time Buyer program. For quick service please submit the “Request Information” form at the top right side of your screen.  Mobile users can find the short Request Info Form here.  Please also be sure to call ph: 800-871-2636 and visit www.FiveStarsMortgage.com for the latest mortgage info.

USDA mortgage loan eligibility Leesburg FL

Leesburg USDA loan

 

Are you a home buyer in Leesburg considering a 100% USDA loan? If so you want to aware of certain eligibility requirements that need to be fulfilled in order to obtain loan approval. The objective of taking a USDA mortgage loan is to finance the purchase of a home in a rural area like Lake County. One of the biggest benefits of the USDA Rural Housing program is that it requires no down payment, making it easier for potential first time borrowers. However, since you can borrow as much as 100 % of the total value of the property, there would certain requirements need to be met to get approved. Below we will discussed these requirements so you can decide if the USDA loan is right for you.

The other major requirements that need to be fulfilled by the applicant are as follows:

  • The applicant must be US citizen or permanent resident.
  • The borrower must either have adequate income or should have a dependable. Generally a two year employment history is needed.
  • It is important that the applicant have a good credit history with a min 620 credit score.
  • The applicant’s total debts must be lower than 41 % of their total monthly gross income.
  • The applicants adjusted yearly income should not exceed the moderate-income limit that exists Lake County. Buyers can see the most recent 2015 USDA income limits here.   Additionally, the income of all the other adults in the applicants home should be included in the total income of the household. Any additional adjustments to the applicant’s gross income such as the costs of childcare can be deducted to help meet the eligibility requirements.
  • The applicants mortgage payment along with his insurance and tax should not exceed 29% of their total monthly income.
  • The home being purchased must be in good working order and be located in a USDA qualified location. Single family homes, townhomes, condos only, no manufactured homes.  The good news is ALL of Lake County is approved – Leesburg, Clermont, Eustis, Groveland, Lady Lake, Mount Dora, Tavares and Umatilla FL

There are many USDA benefits when compared to FHA and standard conventional loans. Below we have listed a few:

  • 100% financing with no down payment
  • First time buyer is not required, the USDA Rural Development loan can be used by move up buyers as well.
  • No class needed to apply, get pre approval in under 30 min.

Applicants that have questions about the USDA program can submit the “Request Information” form at the top right side of your screen.  Mobile users can find the short Request Info Form here.  Please also feel free to call ph: 800-871-2636 and visit www.FiveStarsMortgage.com for the latest mortgage info.

Lake County – Clermont, Eustis, Fruitland Park, Groveland, Howey-In-The-Hills, Lady Lake, Leesburg, Mascotte, Minneola, Mount Dora, Mount Plymouth, Okahumpka, Paisley, Sorrento, Tavares, Umatilla – USDA mortgage loan eligibility Leesburg FL

Buyers that do not meet the USDA eligibility requirements can learn more about the FHA loan here.