What’s Worse? Getting Struck by Lightening or Stuck with the Wrong Dunedin Home Loan For You?
June 14th, 2008 categories: Mortgage Updates
Does the fear of overpaying for your mortgage for the next 30 years have you concerned? It should. We all know better than to go ride the Pinellas Trail in the middle of a lightening storm, so why endanger your wallet for the next 30 years?
Given that purchasing a home is the largest investment most of us will ever make, know that you are not alone if you’re feeling overwhelmed with information. Choosing a lender and the right loan can seem pretty scary at first, especially if it’s your first Dunedin home purchase, but it’s easy enough to make a sound financial decision with little to no effort.
The sub-prime loans that got so many into trouble aren’t an option any more. There isn’t a bank out there that’s going to loan you money to buy a home today unless they are absolutely sure you can pay it back and that your Dunedin home is actually worth what you’re paying for it. So put that fear out of your mind.
Lending restrictions are tightening daily, and interest rates are on the rise. There are a number of options available - all of which are changing daily.
You need an ace on your team to help you decipher the madness.
Your lender must be knowledgeable and able to directly service ALL THREE OF THESE TYPES OF LOANS in order to truly determine your best overall loan structure:
1) Conventional - (Fannie Mae/Freddie Mac) - Currently requires a 10% down payment but that will pretty much be gone by next month and a 15% down will be needed.
2) FHA - These are loans backed by the Federal Housing Administration. The FHA guidelines are extensive, but they are nothing to fear. In fact, FHA loans are quickly becoming the loan of choice for most, as recently highlighted in this Washington Post article.
The best part of an FHA loan is that only a 3% down payment is required! There are some ins and outs to these loans, including understanding the 1.5% fee associated with them, and we’ll touch on all of this in an upcoming post.
3) First Time Homebuyer Downpayment Assistance - If you’re a first time home buyer, there is some free Tampa Bay grant money to be had if you meet certain qualifications - and there are a dizzying array of qualifiers and restrictions, and you can’t use these programs if you’re going FHA. Also, buyer beware - often times you’ll get yourself an overall better deal by skipping on the assistance and going with Conventional or FHA financing on it’s own. Yes, it’s complicated. More on that soon ….
Bottom line? Find a lender with extensive experience and references or chances are great that you’ll pay more than you should have. Whether you’re buying a Palm Harbor short sale or your gulf-view dream home on the Dunedin Causeway, if you’d like help selecting the perfect lender for you, give us a call at 727-366-0324 or contact us.
Oh, and by the way, BEWARE OF ONLINE LENDERS! In another post we’ll have to compile a list of 101 Reasons why you don’t want an Internet lender. Stay tuned…
If you’re looking to buy or sell Real Estate in Pinellas County (Tampa Bay), Florida – Give us a Call today at (727)366-0324 or...Contact Us!
