Florida, "The Sunshine State," is a popular destination for both vacation and home ownership. The state offers a great climate and access to many miles of coastline. Florida mortgages and home loans are unique in that there are so many residential properties with a variety of owners.
Florida has the unofficial title of retirement capital of the United States. That means there are a number of older home owners in the state. Additionally, because of the climate and because the state is home to a number of tourist destinations, there are a number of people who own homes in Florida, but do not reside in them full time. This mortgage climate makes it important for those wishing to buy in Florida to fully understand all the ins and outs of mortgages and property ownership in the Sunshine State.
Mortgage or Deed of Trust
Across the country, there is some variation between states on whether mortgages or deeds of trust are required when purchasing a home via a loan. In Florida, mortgages are the most popularly accepted form, but there are counties in which a deed of trust is required. Your mortgage professional should help you understand what is needed in the county in which you wish to purchase. Chapter 697 of Florida's Real Estate statute defines mortgages.
Federal Mandates in Florida
Florida mortgages and home loans like those in many other states are largely regulated federal laws. Perhaps the largest and most well known of these laws is the Trust in Lending Act. Passed in 1968, the act makes it so that any lender has to let the borrower know how much the loan would cost them.
That means that when you go into the closing on your mortgage, you should already know how much you will be paying in closing costs and other fees. When you apply for and receive a Florida mortgage or home loan, you will be protected by being guaranteed disclosure of mostly all the fees.
Another mandate is that what you are charged in terms of finance charges has to be released to you. This happens via a Truth in Lending statement along with your Good Faith Estimate. This should all be in your possession within 3 business days of your loan application. Your mortgage professional can give you more details on what to look for in your estimate.
Insurance
By the nature of the state, Florida mortgages and home loans require good homeowners insurance. Depending on what part of Florida you live in, you may be required to have hurricane, flood, fire, and or tornado insurance. Talk to your mortgage professional about what is required to fulfill your mortgage insurance requirements, and then consider consulting an insurance professional to find out if you need more. Either way, it is important to understand what you need for your mortgage depending on what part of Florida you are looking to make your home purchase. Your mortgage professional can help you with what is required for where you are buying.
Important First Step
Because Florida varies so much in terms of requirements of insurance and in terms of types of homes and properties available, it is important to make sure you have a good mortgage professional on your side to help you. The right mortgage broker can help you understand the laws, your options, and what you need to do to get the home loan or mortgage that will be most beneficial to you.
What to Do First
Getting a qualified, licensed, and knowledgeable real estate mortgage professional on your side is not as difficult as you might think. By simply filling out the form below, you will be able to get in touch with a mortgage professional that can help you get the Florida mortgage or home loan that you need to get your Sunshine State home.
