Mortgage FAQ

Everyone has questions when applying for a loan. We hope we have answered some of yours by providing those most frequently asked:

What is prequalifying for a loan and how do I do it?

Prequalifying is a method by which a mortgage planner ascertains the amount of credit that can be extended to each customer. To get started, you can call us Toll Free at 1-866-593-3497 or you can visit our preferred lenders page.

How long will it take to approve my loan?
An automated underwriting response can occur immediately upon loan application provided all necessary documentation is available to the Mortgage Planners. However, that typically is not final approval and you must keep your credit in the same condition or better, in order not to interrupt the final commitment of the loan. That sometimes does not occur until a few days prior to closing. So, a little advice. Please don't go out on a shopping spree, or decide to buy a new car until after you close on your home. These purchases will affect your debt to income ratio and could possibly cancel the closing on your new home.

Why is my annual percentage rate (APR) different from my interest rate?

The APR is calculated by adding closing costs to the total loan amount and amortizing that amount over the life of the loan.

Where do I get my down payment and closing costs?

There are many resources of acceptable monies for a down payment and closing costs. The most common are personal savings, IRS refunds, gifts from family members, 401K withdrawal, loan against 401K, and sale of assets. You may want to check with your financial advisor to select the method which best meets your personal needs.

Where do I go for my closing?

The closing office is usually held at a title company or on occasion an attorney's office chosen by the seller; new home builder or owner of a resale property. Your Realtor should advise you of the time, date and location of where your closing will take place.

What documents or information will I need to be ready to close?

Proper identification is required to close on a real estate purchase. You will need to present your driver's license, or a passport, which are preferred or a current photo I.D.

In addition, it is mandatory that you have your home owner's insurance bound and in place prior to the closing day. This is a requirement of the lender and your Realtor should advise you of this. Please do not procrastinate searching for home owner's insurance. In Florida, during our hurricane season, should there be a disturbance, within a certain area off Florida's coast, insurance company's stop writing. Typically quotes are good for 30 days, so please don't wait until the last minute to start shopping your insurance coverage.

Last but not least, you should, with the help of your Realtor, be advised of the amount of money owe (if any) that you need to bring to the closing table. Any money that is owed for the closing MUST be in the form of a cashier's check and made payable to the title company or law firm handling the closing.

Who needs to attend the closing?

Florida Homes Realty Professional Group is dedicated to being there to helping you throughout the entire buying or selling process. Therefore, your Realtor will attend the closing with you to assist you should you have any questions or should any issues arise. In some instances, your mortgage specialist may also attend the closing, but they are not required to do so.