Looking to relocate to Florida? Consider South Miami Heights. Just 17 miles south of Miami, this area is full of attractions that you and your family will enjoy for years. You will enjoy the great climate and nearby beaches.
After you have found your dream home in South Miami Heights, you will need to qualify for a mortgage. Many questions will arise during this process, especially if you are a first time homebuyer. There will be certain terms and documents that will seem foreign to you. Understanding the basics of home buying is important.
Mortgages
Your first job is to find a loan officer who will guide you through the process. They will be able to answer any questions that you have. First time home buyers have many options available to them. You will need to choose the type of loan, the term of the loan, and even the interest rate you receive. You will fill out a loan application. The information you provide on this application along with your employment status, bank statements, tax records, housing costs, and other assets will help determine what type of loan you will qualify for. Feeling comfortable with your loan officer will make it easier to submit this personal and financial information. Do not hesitate to ask questions.
The two common mortgage types are fixed rate and adjustable rate. A fixed rate loan will allow you to have the same mortgage payment every month for the term of the loan. This loan may have a higher interest rate but works well for those who need to budget their money. The mortgage payments with an adjustable rate loan can change. Your payment will go up or down depending on the interest rate at pre-determined intervals. Typical intervals are 1, 3, or 5 years. These loans usually start out at a lower interest rate than a fixed rate loan.
Closing
After you have been informed that your loan has been approved, a meeting will be set up to close on your house. At closing, you will finalize the purchase of your house. Make sure you set aside enough time for closing. This usually can be accomplished in an hour, but can become lengthy. To make this day less stressful, consider taking either half a day or the whole day off. You will need to bring a form of identification with you. You will also need a certified check to pay for the closing costs and your down payment on the house. You will be able to get this figure a few days before closing. You will be required to sign multiple documents. Double check all the documents and ask any questions at this time. The final step at closing is when you receive the keys to your new house.
Refinancing and home equity loans
If you are already a homeowner in South Miami Heights, Florida, you may qualify for a refinance loan or a home equity loan. Both of these loans will provide you with money to pay off credit card bills, unexpected medical bills, remodeling or repair of your home, education costs, or even a new car.
A refinance loan allows you to get a loan at a lower interest rate or a different term from your initial mortgage. You will go through the same process as listed above because you are applying for a new loan. You will choose a new loan type, new interest rate, and new term. You will attend closing as before and sign multiple documents.
A home equity loan allows you to borrow money from the equity you have earned in your home. This loan can be either in the form of a lump sum or a line of credit. You will pay interest only on the amount of money you actually borrow. Home equity loans usually have a term of 15 or 30 years.
One of our knowledgeable loan officers can help you with your lending needs. Contact our office today.
