There are a lot of mortgage companies out there. While using a mortgage company to help you find the best rate makes sense, it’s important to select the right company. Here are a few tips for selecting a good mortgage company for your needs:
- Be careful of special promotions that have hidden fees. Many of the deals you may see on television or in the papers may try to win your business with an extremely low rate, but once you factor in all the hidden costs, you’re not saving at all!
- Be sure you know each fee up front and what it is for. As touched on in point #1, some companies may tack on additional costs that are not disclosed right away. A good company will make all of this information readily available to you.
- Be aware of application and appraisal fees. Some mortgage companies charge huge amounts for these but don’t really offer anything to justify the cost. Track down the best service at the lowest cost.
- Service is the most important factor when considering a Pensacola Mortgage Company. Unfortunately there are some companies that are committed more to their bottom line than they are to their customers. You should choose a mortgage company that will take the time to get to know you and your needs, and formulate a plan that works for you!
We will do whatever it takes to become your Pensacola Mortgage Company. Let us answer your questions and win your trust by calling us at 850-936-0422 today!
Should you use a broker?
Obviously, the goal is to find the most competitive interest rate available. Unfortunately, not everyone knows how to go about this. More than 50% of homebuyers tend to accept the first rate their bank offers!
Not only does that mean most of them are settling for the first rate given, but that the majority of them are not using a broker.
A Pensacola Mortgage Broker is a certified professional who seeks the best mortgage terms for you through their access to a network of lenders including banks, trust companies, credit unions and finance companies. These resources provide the broker with rates on almost a daily basis. They will then sift through to find the best rate available to you. Most importantly, they will save you the laborious and sometimes undignified task of approaching the various lending institutions yourself.
If we can be of any assistance in finding the best rate for your Pensacola Mortgage please give us a call at 850-936-0422 so we can explore your options today!
Recent news reports are bringing a great deal of interest in a new FHA program designed to help homeowners who are “underwater” on their mortgages. The new program modifies the Making Home Affordable program and the FHA’s own refinancing programs, allowing FHA lenders to offer FHA refinancing loans that forgive at least 10% of a qualifying borrower’s original mortgage principal.
These loans are for home owners making payments on a conventional or sub prime mortgage for a property not worth as much as the borrower owes on the original loan (also known as a “negative equity position”.) To qualify, applicants must owe at least 15% more on the property than it’s actually worth.
According to a press release by the FHA, the program is “designed to maintain home ownership by providing borrowers, who owe more on their mortgage than the value of their home, opportunities to refinance into an affordable FHA loan.”
The new program offers important help for those who qualify—ten percent a respectable amount of money to have taken off any amount owed on a mortgage—but the Department of Housing and Urban Development reminds potential borrowers that this particular refinancing program is only for those who are current on their mortgage payments.
There are other FHA requirements for this refinancing loan, including residency—the borrower must be living in the home being refinanced as their primary residence. The borrower must qualify with a credit score of at least 500.
It’s also important to know this FHA program is designed for homeowners with conventional or sub-prime loans. It is not intended for borrowers with FHA mortgages. There is also a time limit on this program; qualified borrowers may apply for refinancing for loans with case numbers issued on or after September 7th 2010 and closed on or before the end of 2012.
This refinancing program can help homeowners avoid default and foreclosure on an existing conventional or sub-prime mortgage, but FHA requirements for lenders include a warning that borrowers should be aware of: the FHA requires lenders to inform applicants that this loan forgiveness program may, “be reflected as a negative feature on a borrower’s credit score.” The FHA also advises borrowers to check with a tax professional to learn what tax implications might come with having 10% or more of the original home loan amount forgiven.