No matter which state you live in, there is usually some type of program for a first time home buyer. If you reside in Florida, there are many programs and assistant options available to you! And as with any situation, each situation is a bit different. 

In Florida, there are also some loans that do not quire the typical 20% down payment. Some of these programs require as little as a 3% down payment and a minimum credit score that varies. These loans include but are not limited to: Conventional 97, FHA loan, VA loan, and USDA loan. These options also allow you to use money that was gifted to you or use funds from down payment assistance. 

Florida has what is called the Florida Housing Finance Corporation (also known just as Florida Housing) that helps homeowners find approved lenders. The approved lender will help the homeowner throughout the whole process, along with offering education throughout the way as well. In order to get this type of assistance, you do have to take an education class in order to work with them. The class does not take a long time and you are able to do it online as well. In order to qualify for this type of help you also need to have a minimum credit score of 640. Each county in Florida has a certain limit for the purchase price and income that is set by Florida Housing. Both your home purchase price and income must be less than the limit set forth for each county. Each county has different requirements.

If you are interested in purchasing a home in one of the big cities in Florida, you will find yourself in competition. As you know, the market is hot and very competitive. Do not let that steer you away purchasing a home in one of these big cities…you just have to be strategic about it. There are many resources and education options out there that are available for you! You will not have to go through this without the assistance of others.

It is an exciting time for you if you are thinking about applying for a home loan! And we have good news for you – getting approved for a home loan is a lot less intimidating than you may anticipate.

To start off, we would recommend that you get pre approval from a lender to begin the process. This letter will give you a realistic idea of what you can afford for a home. Having a pre approval letter also gives you an edge in this competitive market. We have discussed the pre approval process before. But to reiterate quickly, it is a fairly easy and quick process. Once you decide on which lender you want to use, you complete an online application. The application should not take more than twenty minutes and will require a variety of documentation that you will need to submit. Since pre approval letters do carry an expiration date on them, you may need to have your letter renewed several times if you do not find a home right away.

The next step in the process is to actually fill out an application once you find a home you wish to purchase. When you are ready, it is wise to apply to a handful of different lenders to make sure you get the lowest mortgage rate available to you. It is possible that you save a great deal of money by simply shopping around. Keep in mind that you do not have to use the lender you obtained a pre approval letter form.

The final step in this process is to obtain a final approval from the underwater. It is in this process that a lender reviews all of the necessary documentation provided, along with performing credit checks, etc. If there are any questions that need to be addressed or more information that may need to be provided, your underwriter will get in touch with you to clear up any concerns or questions they may have.

As you can see, once you break everything down, the process is not as intimidating as you may have initially anticipated!

Last week we went over the three most common ways of real estate investing. The first being purchasing some type of multi family home where you can live there as well. Purchasing a vacation home is a second option to invest in real estate. This is perfect for some people so you have somewhere to vacation! And the third option is purchasing an investment property where you would rent the property out strictly to rent to someone else long term.

Some of the more “hands on” types of people would prefer to purchase a home to flip. What they do is purchase a home that is rundown and needs a lot of work but is for an inexpensive price. With their own abilities, these people can make major improvements on this type of home, sell it, and make a significant profit. Some people who wish to do this will partner up with others who have different abilities in making improvements. This type of situation, however, requires a different type of mortgage – such as a second mortgage or cash-out refinance. There are a few different things to be sure you look at before you make this decision.

Another option is called the “Buy, Rehab, Rent, Refinance, Repeat” method. This method is basically flipping a home and instead of selling it immediately, you rent it out. Not only would you need to be a handy person but you also have to have the ability (and desire) to be a landlord.

A real estate investment trust (REIT) is the sixth option. This option entails investing in a large scale real estate operation. A REIT operates real estate that produces income or other assets that are related. For some, this is the easiest option to invest in real estate as you do not need to deal with any mortgage, repair, or tenants. If this is the route you would like to take, make sure you do your research and look into them completely.

Each person will have a different idea as to what may be the most beneficial for them and their situation and/or the easiest. Before making your final decision, we would recommend you talk to a professional about your options and what would make the most sense for you and your financial situation.

If you have some money saved or you are coming into some extra income, you may be thinking of investing in real estate. There are a great deal of people who have gained a great deal of money from investing in real estate. “Investing in real estate” is a rather arbitrary term as this may mean you plan to purchase a home to flip it or purchase a home to rent out as a vacation home or even just purchasing a home to live in. 

That last remark may catch you off guard as you may think that living in a house is not considered to be an investment, but it is! This is because over time, the home will likely be worth more money and therefore an investment. When you put the least amount of money into the home and can sell it for a great deal, there is your investment!

Some people decide to purchase a multifamily home, whether it be a duplex or have even more units. By purchasing this type of home, there is somewhere for you to live as well. Even if in the beginning the rent you collect just covers your mortgage, as time goes on and rent rises, you will be making a significant income.

Purchasing a vacation home is another investment opportunity idea. When there is no one staying on the property, you have somewhere you can vacation! The income you earn from the rental fee will likely not only pay for the mortgage but should also pay for other fees associated with the home like insurance cost, taxes, and maintenance fees. And again, how nice to have somewhere you can easily vacation to!

Another investment opportunity is strictly an investment property. This means that you rent out the home full time to someone. If you take care of the property yourself without having a property manager, you will save money there. If you can afford the complete cost of the home (without taking out a loan) you will obviously earn even more of an income. And if you have long term tenants, you will not risk having months where income is not earned.

These are the top three and most common ways you invest into real estate!

Many homeowners are either in the process of refinancing their mortgage or thinking about it. The mortgage rates are lower than what people currently have so they want to take this opportunity to refinance. Believe it or not, you are able to refinance your mortgage fairly quickly even if you recently purchased a home or you recently refinanced. For some, you can refinance without a waiting period and for others you may need to wait six months before you refinance. It is dependent on what type of loan you have.

If you are trying to decide if refinancing is worth it for you, you need to look at the big picture and see how much money you will save in both a monthly and lifetime aspect of the loan. Another good reason to look into refinancing is if your monthly payment would be decreased. That extra monthly money could play a big part in someone’s financial life.

You may not be aware but refinancing does have costs associated with it that is similar to a closing cost – it is usually a percentage of your loan amount. There is not a magical number as far as how many times you can refinance your home, but there may come a time when it does not make sense to continue to refinance. Especially since you likely have to wait six months between closings.

Keep in mind that whenever you refinance, your loan starts over. Unless of course your loan term is shorter than your current loan. Refinancing means that you are creating a brand new loan so your loan length starts over.

Also keep in mind that there is a difference between a cash-out or no-cash-out refinance. If you do a cash-out, you are borrowing from your home equity. So you will actually have to take out a bigger loan than you actually owe in order to get the cash you may need/want.

Refinancing can definitely be a good decision for a homeowner – just make sure you look at all of the different angles that are involved.

If you are unaware, pre approval letters typically come with an expiration date. The expiration date varies as it could be 30, 45, 60, or even 90 days. Although the 90 day expiration is very uncommon, it just depends. With the market being as crazy as it is today, you will want to make sure your pre approval letter is current and you have easy access to it in case you have to jump on making an offer for a home quickly.

It is important and easier to have a current pre approval letter as it is possible for a mortgage rate to make a significant change, particularly an increase, and with the increase, you may not be able to afford a loan so high. Because of the possibility of the quick rise of mortgage rates, the majority of lenders are decreasing the amount of time a pre approval letter lasts. 

Unfortunately you cannot extend a pre approval letter, but you can renew them. Lenders will require documentation to be re-verified upon renewing your pre approval. For example, your most recent pay stubs and bank statements will have to be submitted again. It is possible for things to change within a short period of time, so you can understand why this type of information needs to be submitted again.

The good thing is that there is no limit on how many times you can get pre-approval letters. If you are in the process of house hunting, do not hesitate to ask for a renewal from your lender. The majority of lenders do not charge for a pre-approval letter. If a lender does, they will merely deduct their fee from the closing cost.

Depending on the process a lender uses, your credit score may or may not be affected. It depends if a lender makes a “hard” or “soft” inquiry. A “hard” inquiry affects your credit score while a “soft” inquiry does not.

Having this pre-approval letter will make your house hunting less stressful and perhaps a little easier. This is especially true if you are in a rush to purchase a home and you want to stand out against others.

If you are opening your home to a loved one who is elderly or your elderly family member (or friend) is living alone, there are some things to take into consideration so not only are they safe, but tasks that they need to get done can easily get done. Falling is a huge danger that the elderly have. It is estimated that as many as 5,000 people a year will die shortly after falling. That is a significant number! Keep in mind that there are about 75% fewer fall when someone can be cared for in their own home instead of a facility.

If a room is cluttered, it will be more difficult for someone to get around with a walking aid. Make sure all rooms have a limited amount of furniture and other “stuff.” Also, be careful of any rugs that have the potential to be tripped on. It would be best to remove any extra rugs in the home as well.

When it comes to the bathroom, there is a lot to take into consideration. For the bathtub, rails would be helpful to get in and out of the bathtub. A non-slip mat on the bottom of the tub would also be helpful. If possible, a walk-in shower would be the most conducive and safe. Depending on the size of a person, a toilet may be too low to the ground for comfort and safety. There are options to adapt the seat to make it higher.

When it comes to the kitchen, there is a lot that can be done! Counter tops, drawers, and shelves that are higher up would be easiest for the elderly to reach for. If cooking is still on the table and possible, a talking scale or a scale with big numbers, would be most beneficial. There is also a great deal of kitchen gadgets that can be changed out for older gadgets.

We thought that this information would be important to the ever-growing population of people who care for their elderly family members. If you have any other tips, please share them so others will be able to benefit as well.

There are quite a few reasons that a lender looks at someones bank statement. Mostly, a lender wants to make sure that someone can afford a house downpayment, closing costs, and obviously monthly mortgage payments. Lenders will also look at a bank statement to see if any checks that have been written have bounced due to not having enough funds in your account. It will also look questionable and strange if someone has a significant deposit made into a bank account but the source is not easily able to be found. The opposite is true, too…if a large amount of money is going toward an account that is not clearly listed, questions will be raised.

For the most part, most lenders will look at a minimum of two months of bank statements. In some situations they will look for more than that. These bank statements include accounts for your checking account, savings account, and any other accounts you might have. Besides what has already been mentioned, lenders want to make sure that there hasn’t been any debts recently acquired. If you are self-employed and do not receive a W-2, lenders may ask to look at your most recent 12-24 months of bank statements.

If a lender notices a large sum of money in your account that may be used as a downpayment, your mortgage company will want you to obtain a letter from your person who gave you the money that states the money is a gift and not a loan. This is known as a gift letter. If you have receive a large amount of money and it was not for a gift, it is recommended that you wait at least sixty days (different if you are self employed) so questions will not be asked in regards to the significant amount of money.

If you have a reason to be concerned or wonder about transactions that show up on your bank statement, let us know and we would be happy to answer any questions.

For the most part, you will purchase a home with a signifiant other. However, that is not always the case and it absolutely does not have to be the only way to purchase a home with someone. You can purchase a home with a friend, a family member, or someone you are in business with. When you purchase a home with someone else, both of you will be equally responsible to make payments. On the upside, you will both be eligible for gains. Co-ownership is fairly popular in today’s society.

Going through this process is no different than a married couple (or single person) would have to go through the process. Keep in mind that it also gives rights to both people…a fifty, fifty split in decision making, responsibilities, etc.

One of the reasons people choose to do this is because your mortgage rate may be decreased and your budget to purchase a home is increased. Basically, both incomes are combined to see how much you can afford to borrow. Both debts are also combined as well.

Owning a home with someone else takes a lot of stress off of someone. Not only do you have someone to share the mortgage cost with, but you also have someone to share any maintenance, repair, or improvement costs with. It takes a lot of pressure off of you.

While there is plenty of positives to owning a home with someone, there are negatives or precautions to think about as well. For example, if your partner gets in a tough financial spot and they are unable to pay their portion of the mortgage or repairs that are needed, you will be responsible for their portion.  Sometimes it gets fishy when it comes to agreeing to maintenance work and repairs.

There is a lot to think about when it comes to making a decision on if and with who you should purchase a home with. We would highly recommend you come up with pro/con list before making your final decision.

Have you heard of a “bank statement mortgage?” If not, keep reading! A bank statement mortgage is something that is not incredibly well known as the majority of people do not go this route. If you do not earn a traditional paycheck via a W2, proving your income as a contractor or freelancer, etc. will not be as easy a “regular’ employee. The way to do this is by proving your income from showing a minimum of two years of regular deposits in your bank account.

Your income needs to be proved – this includes debts, savings, investments, etc. With being self employed, someone may have $1,000 worth of write-offs in a month which would decrease their income by $1,000 for the month. This may reduce your budget for what you can afford to purchase a home.

Bank statement loans have become more popular with an increase of people working from home and not working a traditional job. Getting a loan should not be a problem except for the fact that you will need to show one to two years worth of income while being self employed. The amount of money you receive will have to be substantial as well. A bank statement loan is not difficult to be approved for, again, as long as you are able to document regular monthly deposits.

Each situation is a little different so it will depend on the lender as far as what you qualify for and for the amount of time you have to provide bank statements for. Depending on the situation, a lender may want you to provide a profit and loss statement as well. This would be for a business owner specifically.

This type of situation may require some different requirements as well. For example, your down payment and credit score may be more than a more conventional loan.

If you would like to talk further about this, let us know. We would love to help you get approved!