Considering the Purchase of a Home in the Lakeland Florida Area

Purchasing a new home is a major decision. Take your time and do the homework necessary for a smooth purchase. There are a number of items and expenses to think about, don’t jump in head first, you could get hurt.

Interview and ask for referrals for a real estate agent. If you are unsure how to go about this, see my earlier blog “Choosing a Real Estate Agent.”

Go over your budget. Ok, if you don’t have one, now is the time to make one. (Sounds like another blog I need to write.) This is a necessary step; you do not want to over extend yourself. Remember, there are going to be more expenses to owning a home, then renting. Major Items to consider: Property Taxes, Insurance, Utilities may be higher, Maintenance, Home Owner’s Association Fees, Lawn Care, Pool Care, etc.

Check your credit score, yourself. There are always links stating you can check your score for free online. This information is going to be essential when you begin communicating with lenders. Major Point: Do not give your Social Security Number to all those lenders and mortgage brokers you are trying to receive information from. The reason is that every time your credit is checked by a lender or broker, your credit rating goes down! A lot of people do not realize this and give the information to everyone, and then wonder why they can’t get the interest rate they thought. So, get your credit rating yourself. Bring this information with you when you speak with a lender.

The basic items you will need to have available to begin the process of finding a mortgage, should include: Proof of your monthly income, all sources. Copies of your last two to three years Federal Income Tax Returns, Copies of your latest bank statements – all accounts. Copies of your credit card statements, (if you have any credit cards), Copies of any Car loans, Copies of any current mortgage statements, Copy of any lease or rental agreement statements, copies of any other monthly payments such as child support. This will give the lender a good idea of your monthly income and expenses and be able to provide a more accurate estimate of what they can offer.

Now, the first place to start your search for a mortgage is your bank. The reason is they know you. Also, your bank may offer current customers special promotions to keep the business. Banks usually have fewer fees associated with a mortgage then going thru a mortgage broker. Think about it: If you go through a broker he has to make money too! Therefore, try to leave out the middle man if you have good enough credit. I am not trying to harm the mortgage broker business, just letting the consumer know that there are more fees for the buyer when using a broker.

Remember: the amount that you decided on in your budget! This is very important because when you get to the lender they may tell you that you qualify for more then that amount! This is what gets people into trouble! Do not let anyone talk you into a higher monthly payment then what you have set for yourself. Important: The lender or broker may give you a figure that appears to be in your budget, but beware there are other things to consider. If you escrow Property Taxes and Insurance in your mortgage; these figures will be added into your monthly payment. A number of lenders will require a fee NOT to have your property tax and insurance escrowed. I have heard both sides of the escrow debate. That is a personal decision.

Once you have gathered your information and possible mortgage pre-qualifications, you will be able to make a more informed decision. Don’t forget that there will be other fees associated with the closing. The Truth in Lending the lenders may provide you will not give ALL of the closing fees, they will include some but not all. They can’t they are not the title agent.

Good Luck and take your time! There is no rush. This is a buyer’s market right now in Lakeland, Florida, so take your time and do the homework!