Cape Coral Investment: Why Is It A Win-Win Situation For The Buyer And Seller

Southwest Florida is a vacation haven that continues to be a crowd magnet every year. So if you are one of those with images of Florida beaches flashing through your mind, you are not alone. If you are dreaming of buying a real estate property that is closed to the picture-perfect attractions of this sunshine state, Cape Coral investment should be number one on your list. At present, the estimated number of permanent residents in this area is around 180,000. With this number, many people have been starting to feel captivated by noteworthy rivers and canals. Cape Coral is also a master-planned community so you can be sure that you are investing in a property that gives you value for money.

How about the housing market? Expect the Cape Coral market to be competitive with $233K sale price as of last month. The prices have factored in the cost of living, which is more affordable than the neighboring cities. Southwest Florida is everyone’s dream base because it has lower taxes. This means that you can enjoy a large fraction of your income and experience the best things in life. According to Zillow, Cape Coral’s median home value is currently at $227,500. Compared to the past year, the values have increased by 5.6%. Based on the real estate market prediction, the Cape Coral market will increase by 0.8%  in 2019. When it comes to the price per square foot, Cape Coral is relatively lower than the Fort Myers Metro average. The price per square foot in Cape Coral is at $151 while the Fort Myers Metro is at $160.

Why Cape Coral Investment Is A Good Idea?

Now you do not have to be too technical to understand why a Cape Coral investment is worth every penny. Here are practical reasons beyond the usual “friendly ambiance”, “awesome beaches”, and “great restaurants”.

1. Affordable

One factor that prospective buyer wants when searching for a real estate property is the cost of living. Cape Coral is a perfect option because based on local standards, the cost of living is undoubtedly affordable. If you are going to rent an apartment, the average price will be $1200 per month. If you choose a studio apartment, you can secure a cozy space at $750 a month. If you want a one-bedroom apartment, you can get one at $1000 per month. When compared to Miami, the median price of Cape Coral real estate properties stays at $250,000.

2. Unbelievably Low Taxes

The best thing about Cape Coral is that it does not have a state income tax. If you decide to secure rental real estate by means of holding them in a corporation, then the income taxes that you will need to pay will be much lower. When it comes to the property tax rate of Florida, its assessed value is usually at 1.1%. The national assessed value average is at 1.2%. Aside from the state income tax, you should also take the city and county property taxes into consideration. It is estimated that the property tax rate of Cape Coral is almost $7 per $1000 per property value. The city is still in the process of reducing the property tax rate.

3. Landlord Friendly State

Another reason to like Cape Coral is that it does not have rent control. If you have given security deposit rates, the area does not provide limits on how high the rate can be. For overdue rental payment, you will only need to give the tenants three days’ notice to evict them. For properties that have been intentionally damaged, a quit notice with a maximum period of 7 days will be given. The sanctions can be given to tenants who have committed repeated violations, but court proceedings are still part of the process. If you like the idea of investing in water property in Cape Coral, the fact that its landlord-friendly makes the area a good option.

4. Strong Real Estate Market

Due to the economic growth of Florida in general, you can expect its real estate market to be strong. Each year, the state has been attracting residents from California and New York. When it comes to property values, once the real estate market is down, you can expect it to crash. With this in mind, people who are interested in investing in Cape Coral can use this as a great buying opportunity as it provides a return on investment. Take the aftermath of a hurricane as an opportunity to buy a real estate property. You will have lower insurance costs because unlike the Atlantic coast, Cape Coral is not always hit by hurricanes.

5. Growing Tourist Market

Tourists have flocked in Cape Coral over the years. However, regulating short term rentals is still a struggle. The good news is that Cape Coral no longer allows rentals which are less than 7 days though you can expect the area to be immensely popular for seasonal renters. For people who like to stay close to the ocean, the Cape Coral real estate market is an attractive prospect.

Cape Coral Mortgage, Inc.
3512 Del Prado Blvd. S Ste106
Cape Coral, Fl. 33904
(239) 540 5555

Reasons To Love Waterfront Houses In Cape Coral

When searching for a real estate investment that you want to turn into a peaceful base, waterfront houses will be an outstanding choice. Cape Coral, being surrounded by pristine beaches, is the best place to own a home on the water. There are good reasons why it is worth living in a waterfront house:

1. Higher value

Investing in waterfront properties is a wise move because of its resale value. If you decide to sell your property in the future, the fact that waterfront properties are sought after gives you an edge over other sellers. As compared to off-water homes, selling a house situated near any body of water gains more interested buyer.

2. Can keep family and friends entertained

Water provides a calming effect that fills your heart and mind with peace. A property near the beach, lake or any body of water does not only bring serenity but also looks more inviting to family and friends.

3. Provides water-based activities

Buying waterfront properties is like hitting two birds with one stone. You are not only making a great investment but also getting access to fun activities with your family. A waterfront property allows you to take part in fishing, swimming, boating, paddle boarding and kayaking anytime you want.

4. Relaxes your mind

Another reason to love waterfront houses is their ability to reduce stress. If you are tired of the hustle and bustle of the city, getting off the grid and communing with nature will help you relax. With a property that is closed to nature, you will be able to do the best things in life like catching a sunset or dipping your toes into the water.

5. Wildlife viewing

Southwest Florida is home to all kinds of attractions including wildlife where you will have a chance to have a close encounter with manatees, dolphins, tropical birds and different species of fish. You do not have to drive far when you own a property that gives you access to wildlife. The Gulf of Mexico, gulf access canal and freshwater lakes are also additional attractions you cannot afford to miss.

Important Considerations

As there are numerous benefits you can obtain from waterfront houses, you should also give importance to some rules and regulations that the property you are planning to purchase might have. Just like any type of property, you need to make sure that you are not violating any laws.

Flood Insurance

While owning a waterfront property is considered as a great investment, being situated in a flood-prone area makes the idea less appealing. Be sure that you secure insurance to protect your property. Be sure to choose properties with controlled water levels. There is also a way for you to check if you are in a flood risk area. You can go to this website to find out. Harsh weather can cause tsunamis and high tides. These natural calamities may damage your home due to floods. If you are unprepared, your investment can be reduced to rubble.

Shoreline permits

There are waterfront properties that extend into the water, and if yours have undergone improvements, you need to be aware of the regulations so you do not have to carry the consequences. Whether you build, rebuild, or repair your property and it results in extending it across the shoreline, you need to secure a permit. Most regulated areas will only allow the process if you adhere to the local guidelines, state’s regulations and the waterfront plan. Before you make improvements to the property, you need to consider three important factors:

  • Are the structures legally constructed?
  • Can you rebuild or repair them?
  • Can add or expand waterfront features?

The life expectancy of materials

You should be aware that the life expectancy of your home’s materials will also depend on your property’s location. If it is situated in saltwater locations, expect early signs of wear and tear on your waterfront features or the exterior of your home. Your roofs, fences, siding and other features that are exposed to the ocean or any saltwater body can wear down faster than those on off-water locations.

Elements like waves, storms, and wind can also damage your property, especially if it is near the water on a river or lake. You need to build physical obstructions so you can protect your home from these elements. Without protection, you need to replace the materials of your waterfront home more often than you should.

There is no doubt that waterfront property is a great investment. For you to make the most out of your home purchase transaction, you should seek guidance from an experienced home inspector or agent.

Cape Coral Mortgage, Inc.
3512 Del Prado Blvd. S Ste106
Cape Coral, Fl. 33904
(239) 540 5555

Bad Credit Score: How Soon Can You Secure A Mortgage Loan?

There’s a good reason why you need to be mindful of your spending habits. While occasional splurge is OK, not keeping track of your expenses and giving more importance to your wants than needs can wreak havoc on your finances. If you’re planning to secure a home or mortgage loan, may as well save up for the future or at least, take good care of your credit score.

How important is a good credit score? In the United States, it is a crucial determining factor in getting a mortgage. If you have bad credit, getting a loan can be a challenge. Instead of having a smooth journey into buying a home, the road can get steeper and steeper. There are practices to follow to raise your credit just in time to buy a house.

Getting a loan with bad credit

Understand your credit score

You will never know the importance of a good credit score unless you know exactly what it is. A credit score refers to the three-digit number which indicates your level of risk based on your financial history. Once you apply for a mortgage loan, the lender will check your credit score. The information appears on your credit report so if you have missed or late payments, this misstep will reflect on your credit score.

There are five aspects that can affect your credit score: length of history, payment history, credit mix, new credit, and debt-to-credit utilization.

Length of credit history: You can improve your credit score if you have a longer credit history. Lenders check the age of the applicant’s oldest account, the average age of all the accounts and the age of the newest account. Even if you have accounts with zero balances, it is still essential to keep all of them open.

Payment history: Making timely payments should be a habit because late payments can also impact your score. Delinquent payments of up to 30 days can cause your credit score to drop by as much as 110 points.

Credit mix: Having various types of credit accounts can help your score. These credit accounts may include installment loans, car loans, mortgage loans, credit cards, and retail accounts.

New credit: Avoid opening multiple accounts or applying for a new credit account as this can reduce your score by five points. This action can also result in lowering the average age of your credit account, which impacts the length of your credit history.

Debt-to-credit utilization ratio: This aspect refers to the amount of debt on your credit cards divided by your credit limit based on the sum of your credit card accounts. Prevent damaging your credit score by keeping the ratio around 30%. You can do this by avoiding maxing out your credit card every month.

It is important to note that your report may not show the actual credit score. You might need to get that separately.

What should be your ideal credit score?

Although 850 is the ideal credit score, only about 0.5% of consumers can attain this number based on a report from Fair Isaac Corporation. You are on the right track if your score is over 740. This can qualify you mortgages with best interest rates.

For scores that are in the 700s, you can still qualify for loans with reasonable interest rate. More often than not, lenders are looking for conventional loan applications with a minimum credit score of 620. However, if you want a decent interest rate, you should aim for a 660 credit score and steer clear of applying for additional loans to maintain your score.

Establishing a credit history

With raising your credit score, understanding the importance of the length of your credit history is also essential. There are many ways that you can qualify for a mortgage if you have not established credit at the age of 20.

Building your credit history is necessary for making yourself credible. So long as you have a good track record by paying debts in a timely manner and ensuring that you are not falling behind bills payments, these are great indicators that you are a responsible credit user. You can also build a credit history by taking out a credit-building loan.

Explore your options

There are various types of mortgages that can assist individuals who have lower credit scores apply for a home loan. Federal Housing Administration (FHA) for instance, provide applicants with the lowest credit score requirements. This is usually around 580 to qualify for 3.5% downpayment.

Ways to boost your credit score before securing a home loan

While a lower credit score can give you a hard time applying for a mortgage, it does not mean there is no other way to address your financial habits. If you intend to buy a home, now is the time to improve your credit.

  • Ensure timely bills payment-Paying your bills on time is the easiest technique to improve your score. You can start by creating a budget that works for you as part of changing your spending habits. You can also talk to a financial planner to design a budget that will keep your finances intact.
  • Get rid of credit card debt-A debt-to-credit utilization ratio, as a rule of thumb, should not be over 30%. Raise your credit score b paying down existing debt. You can also consider requesting a credit line from your card issuer as this can also lower your debt-to-credit utilization ratio. You can submit your request online or make a phone call.

Check credit report for errors

Make it a habit to secure a free copy of your credit report once every 12 months so you can review it for errors. Your chances of getting your mortgage loan approved may be slim due to errors on your credit report. The bank might have mixed up your accounts or someone shares the same name as you. By checking your report for any errors, you will be able to eliminate any inconveniences associated with having a low credit score due to inaccurate information.

Getting rid of negative marks from your credit report

If there are no errors and you are the one responsible for your low credit score due to a missed payment, you need to call your creditor and request for deletion. Keep in mind that this technique will not work if you have been known for being a habitual late payer. The request will only be granted if you’re a one-time offender. It is important that you are a loyal customer so you can make this request.

Once the creditor agrees to your request for deletion, a letter will be sent to the credit bureaus to request for the removal of the negative information from your credit report. It is your responsibility to collect all the documents like your letter of deletion or a new credit card statement, that will serve as proof that the changes have already been made. You also need to ask your mortgage lender to update your score, the process is known as a rapid rescore. It involves updating your score in a matter of days. This process is a huge help, especially when buying a home.

Seek help from a credit counseling agency

Another way that you can fix your credit score is by talking to a credit counselor. This is a good move if you find yourself falling behind on your credit card payments. The counselor will create a plan so you can make payments to your creditors without suffering from big interest rates. The debt-management company, on the other hand, will help you to negotiate with your creditors to lower the amount of money you owe. It is important to note that these companies also have large fees for such services. Assess your situation before seeking help from these companies.

Understand the interest rates you will obtain with your low credit score

Having a low credit score means that your options are limited. Before you apply for a mortgage loan, discuss your options with a lender. You also need to know the rate your credit score will qualify for. There are different factors that determine your interest rate. It does not only depend on your credit score. Being mindful of your spending habit can make the home buying process smoother and stress-free.

Cape Coral Mortgage, Inc.
3512 Del Prado Blvd. S Ste106
Cape Coral, Fl. 33904
(239) 540 5555

Understanding a Portfolio Mortgage Loan

For people who are looking for a mortgage for a home but cannot obtain traditional financing, there are a few options outside the traditional realm of mortgages where borrowers can still obtain mortgage financing. One of those options is known as a portfolio mortgage or a portfolio loan. Unlike a traditional mortgage lender, a portfolio mortgage lender is usually a smaller lender, bank or mortgage company that will continue to manage and hold a mortgage after the initial mortgage is commenced.

Understanding Long Term Mortgage Basics

Many borrowers are unfamiliar with how traditional mortgages work after they complete the closing on their home. This can be especially true with first time home buyers. Most mortgages today are sold after the home purchase is completed to a large mortgage company and management firm. These mortgages are sold into what is called the “secondary mortgage market”.

The new buyer of the mortgage is the company that will manage the mortgage long term. Many borrowers become uncertain after their first home purchase when they realize their payments start to go to another company after the first six months. This is very common and happens when the primary mortgage sells in the secondary mortgage market to another company. The new company will usually hold the mortgage for the life of the loan but could resell it down the road.

To be eligible for selling on the secondary market, almost all primary mortgages have a list of guidelines that must be met. By contrast, a portfolio lender holds a loan in house and continues to manage the mortgage loan long term. This allows the lender to have more flexibility in the types of people they approve for a home loan.

Portfolio mortgages are a great option for people who have a few glitches on their credit history but are qualified buyers in every other capacity. Some of the primary reasons people choose to use a portfolio lender for a mortgage are people who:

  • Have Credit History Glitches
  • Self-Employed Borrowers
  • Have Little Credit History
  • Are Looking for a Short-Term Mortgage
  • Are Buyers Looking to Buy, Remodel and Flip a Home
  • Have Some Type of Tax Lien
  • Need a Second Home Mortgage
  • Have Income Verification Concerns
  • Have Employment History Glitches Barring Them from Traditional Mortgage Approval
  • Currently have Higher Income to Debt Ratios
  • Are Buying a Home That Needs Extensive Repairs
  • Have High Student Loan Debt
  • Have Old Debt or Old Bankruptcies

In each of these cases, the borrower may not be able to acquire a standard home mortgage. However, these people are capable of making the necessary mortgage payments on the home they wish to buy. Portfolio lenders treat each portfolio loan application on an individual basis and make an approval after considering many factors.

Basic Facts for Portfolio Mortgages

Portfolio mortgages require a 10-25% down payment to be approved. Some of the down payment money can come from a gift. Mortgage interest rates for portfolio mortgages are higher than traditional mortgages because the risk of default is higher for portfolio loans.

A portfolio mortgage loan is a good borrowing option for people who are buying a home that generally could not be approved for traditional financing. This may be because the house has needed repairs, or the borrowers are in the process of rebuilding their credit but their credit score is insufficient for a traditional loan. In many cases, these borrowers have the necessary capital to purchase the home but have other mitigating factors that impede a traditional mortgage approval process.

Top Reasons Your Mortgage Could Get Rejected

Anyone who has bought a home will agree that the most challenging part of becoming a homeowner is getting your mortgage application approved. There is a series of processes that you need to undergo-from securing essential documents to passing the lender evaluation. All of these steps are not easy to accomplish. Every year, millions of individuals are applying for mortgages, but not everyone gets to complete the process.

While it is true that applying for a mortgage loan is not a walk in the park, getting your loan approved is not elusive either. There are good reasons your mortgage application can get rejected. You will need to review your application to increase the chances of loan approval. You also have to be aware of the reasons your applications can get rejected to avoid mistakes in the future:

Low Credit Score

If your parents used to tell you to spend your money wisely, they were actually right. An occasional splurge is fine but when it becomes a daily habit, you will soon find yourself in a cesspool of debt. Bad spending habits make it difficult for you to take out any type of loan. Why? Lenders will review your credit score to gauge your ability to repay them. Sure, some lending firms will approve your loan despite your bad credit history. Although, you have to shoulder the skyrocketing interest rates.

Before you consider unnecessary loans, think of its impact on your future endeavor. You can maintain a good credit score if you avoid using credit cards if you cannot afford them. If you have outstanding balances, be sure to pay them in full before your due date. Your bad spending habits are recorded in your credit history. If you have credit card payment delinquencies,  you can reduce your chances of getting your mortgage application approved.

Insufficient Down Payment

Your down payment is crucial in securing a mortgage. On average, mortgages will require you to prepare 5% to 25% of the overall value of the property you are planning to buy. Although you can still make an arrangement for another person to co-sign your mortgage, once you fall behind your payments, the co-signee will be compelled to pay. The best way to address this problem is to delay your application until you have saved enough money to pay the amount required.

Bankruptcy and Debt Issues

Aside from checking your credit history, your mortgage lender will also verify if you have an outstanding debt or declarations of bankruptcy. Your credit history will include positive and negative information like debts and bankruptcies. A bad credit score stays on your history for years. Be sure that you keep your payments up to date. If you have received notices of debt collection, this information can reflect on your credit history for more than seven years. Do not let your spending habits ruin your credit report. Make debt payments a top priority if you intend to apply for a mortgage loan.

What Happens After The Lender Rejects Your Mortgage Application

The first thing you need to do once you find out that your application was rejected is to accept the lender’s decision. You will also have to know the reason your application got rejected. You should be aware that it will take time before your mortgage application will become approved. So while waiting, you need to get your credit reports, avoid applying for new credit card, be cautious of co-signing and do not close old credit card accounts. By improving your borrowing behavior and spending habits, you will be able to have better chances of getting an approval from the lender.

Cape Coral Mortgage, Inc.
3512 Del Prado Blvd. S Ste106
Cape Coral, Fl. 33904
(239) 540 5555

When Is The Best Time To Apply For A Mortgage Loan?

When it comes to applying for a mortgage loan, timing is everything. The best time will depend on market conditions. So if your timing is right, you’ll be able to get lower mortgage rates. However, the process is easier said than done. This is why you need to gain a better understanding of the mortgage industry so you can predict the right time to take out a loan. What are these driving forces that cause mortgage rates to increase? How will you know your timing is right?

Understanding the mortgage business cycle

Lenders have business cycles that borrowers need to understand. The beginning of the month is intended for acquiring and setting up new mortgage loans. The middle of the month is dedicated to gathering documents and preparing loans for month-end. The end of the month is when lenders ensure they get as many loans closed or approved as possible.

When should be the time to start the loan application process?

The rule of thumb is within the first few business days of the month. Why? This is when lenders are searching for new business. Because they are done with transactions from last month, they’re looking for new applications to start the next month. If you’re a keen observer, you’ll know how eager loan officers are to review your loan options or return your phone calls. They’re willing to set an appointment with you to discuss the terms.

Avoid applying for a mortgage loan the last week of the month. This is the time when loan applications are in full swing. Although many lenders would like to consider new applications, full schedules with closing loans will cause them to let new loans fall to the wayside. While a mortgage officer is happy to take your application, it won’t be getting much-needed attention because they need to fulfill an existing pipeline. Chances are, you’ll get vague excuses as to why your application isn’t prospering and this will lead you to believe that you’re not the number one priority of the lender.

Mortgage loan expectations

If the first few days of the month are the best times to apply, should you be discouraged to apply late in the month? Not necessarily. You need to set your expectations, making sure that you are aware of the processing times. You can also improve your refinance experience when you organize everything. If the lender asks you to submit your financial documents, be sure they’re at your fingertips.

You should also try your best to submit a complete application. While it’s not a guarantee that your application will be processed faster, there’s a greater chance that you’ll not encounter problems. You also need to provide detailed explanation and information about your financial histories such as low credit score or employment gaps.

Expect delays as they are beyond your control. Once you have all the necessary documents ready, there’s nothing for you to worry about. By following the standard protocol set by lenders, you’ll be able to increase the possibility of mortgage loan approval.

Cape Coral Mortgage, Inc.
3512 Del Prado Blvd. S Ste106
Cape Coral, Fl. 33904
(239) 540 5555

Applying For Mortgage? Watch Out For These Potential Red Flags

Finding out that you have been dealing with a fake mortgage specialist can be frustrating. Imagine wasting your time and money on an individual not worthy of your trust. Without a doubt, mortgage fraud can be stressful. For the past few years, mortgage fraud has continued to increase as more and more suspicious activities have gone unnoticed and unpunished. If you are planning to take out a mortgage loan, you need to be careful. Being aware of mortgage fraud schemes will help you stay on the right track. Beware of these red flags as you might fall prey to one of them:

How to identify mortgage fraud schemes?

If you ever notice any inconsistencies in the mortgage file, this is a strong indicator that fraud is taking place. Fact-finding and investigation are all necessary for proving that fraud occurred. Some of the most common schemes you may encounter are:

  • Air Loan: This type of loan refers to a mortgage loan where the property or the buyer does not exist.
  • Foreclosure rescue: A person will represent himself/herself as a property specialist helping the borrower avoid foreclosure. The borrower will fall victim to this scheme and pay for the “services”. Unfortunately, the hapless victim will still end up losing their home.
  • Straw buyer: The perpetrators will disguise themselves as a loan applicant with their true intention concealed.

Other mortgage red flags to watch out for:

If you already understand how the mortgage process works, it will be easy for you to identify if there are any irregularities with the process. At this stage, the only weapon you can use to prevent becoming a victim of fraud is awareness.

  • Take a look at the contract: Be sure to read the contract thoroughly as it will lead to some clues. If you notice that the seller is not indicated on the title, it means that there is something wrong with the transaction. Avoid dealing with people with excessive real estate commission or without any real estate specialist involved.
  • Check for any changes in the mortgage application: You will also notice some changes to the application regardless if it is typed or written. You should also check the purpose of the loan.
  • Questionable income documentation: The applicant does not fully disclose income or tax returns. There is little money in the bank account but the income that has been declared is not aligned with it.

Whether you have applied for a mortgage loan in the past or you are a first-time applicant, it is important that you have a solid understanding of how mortgage fraud takes place. Do not be tempted by shortcuts or quick fixes. You need to follow the correct procedures and report unusual activity or red flags. You can still play an active role in putting a lid on suspicious activities related to the mortgage application.

It is also an advantage if you are going to deal with a trusted and experienced mortgage broker because, at the end of the day, you will gain peace of mind knowing that transactions are valid.

Cape Coral Mortgage, Inc.
3512 Del Prado Blvd. S Ste106
Cape Coral, Fl. 33904
(239) 540 5555

Don’t Commit The Same Mortgage Mistakes

You might currently be in a situation where you are trying to decide whether or not you should get that new mortgage. Many individuals consider applying for a mortgage without taking a few things into consideration. Avoid making a hasty decision without weighing the pros and cons. Whether you’re running into qualification problems or you have higher-than-usual mortgage rate, it is essential to keep these mistakes in mind. Think of these mistakes when you are buying a new home.

1. Going bankrupt

Filing bankruptcy limits your options, so avoid it by paying off your mortgage in a timely manner. Imagine being restricted from getting a mortgage for 7 years! Be sure that you meet the minimum underwriting requirements by keeping your credit score healthy. Remember that any late mortgage payments will surely reflect on your credit report. It will also disqualify you with many lenders or even banks. Make these mortgage payments a priority so you don’t end up on a downward spiral toward bankruptcy.

2. Failing to lock your mortgage rate

There is an option for you to lock or float when applying for a mortgage. Of course, you still need to understand both options before choosing, and you also have to take the interest rates into consideration. Locking your interest rate will allow to you prepare each of your scheduled payments. If you don’t lock the interest rate, or leave it as a floating rate, it has a greater chance of going up. It will be difficult for you to keep up with late payments and the interest rates will eat a large chunk of your payment. It is important that you understand the loan process so you can make the right decision.

3. Not reviewing your credit report

When you’re applying for a mortgage, you should not ignore your credit report as it plays an important role in qualifying for a loan. If you have disputes or your credit score is low, you need to have those errors removed and your score raised before applying for a loan. Lenders or banks will review your credit report and it can be the reason for your disqualification if you have a bad credit score. Even when your application is approved, you are most likely going to pay a much higher mortgage rate with a lower score, which will give you difficulties paying off your monthly mortgage.

4. Not analyzing how much you can afford

It is a life-changing moment to search for property that you can invest in. Problem is, the excitement becomes momentary when the time comes that you have to pay the mortgage rate on a monthly basis. Prior to property search, be sure to get yourself pre-approved or pre-qualified to give you an idea of how much you can afford based on your assets and salary. You will set yourself up for frustration and disappointment if you don’t assess your ability to pay.

5. Having limited employment history

It isn’t the best idea to get a mortgage when you only have a limited employment history. You need to present your proof of income to let lenders know that you are making money while obtaining a home loan. If you keep switching jobs before making an application, it shows you have no commitment and there is a slim chance of getting your loan approved.

If you’re a first-time home-buyer, be sure to verify your assets, credit and employment history. While you might still be able to find a lender who will approve your loan without those requirements, the mortgage rate might not be desirable.

Cape Coral Mortgage, Inc.
3512 Del Prado Blvd. S Ste106
Cape Coral, Fl. 33904
(239) 540 5555

When To Consider Refinancing Your Mortgage

Refinancing a mortgage might have already crossed your mind, but since it’s a major expense, you’ll need to give it a thought before making a decision. Aside from analyzing the closing costs, you’ll also have to think about the refinance rules. If you find it difficult to pay your mortgage, refinancing will help you reduce your monthly payment. Of course, it comes with a caveat. Before you consider mortgage refinancing, here are some questions that will help you to make the right decision:

1. Are the refinance terms favorable to me?

It’s easy to get carried away with what the mortgage refinance company offers. You’ll know whether the terms and conditions are favorable if you take the time to read the fine print. Some of the key points to check are the late fees or penalties. Lenders don’t have the same policies when it comes to late payments, so you need to be careful. Before signing the paper or agreeing to the terms, check if they are favorable and acceptable.

One thing you need to find out is how many instances of non-payment will lead into foreclosure. While you may find it convenient to pay off the loan in advance, some lenders don’t allow this practice. Review all the offers before you decide. You might have to scratch beneath the surface of the offer. Interest rates and other charges might hurt your budget.

2. Do you have an option to lock in the lower rate?

The purpose of refinancing is to save money on your monthly mortgage payments. Instead of going for the adjustable rate mortgage, you should consider locking in a lower rate. Doing this can save you from paying higher interest rates, which usually happens when you choose an adjustable rate mortgage. Imagine paying a higher monthly rate. You’re instantly defeating the purpose of mortgage refinancing.

3. Are you aware of your interest rate?

Refinancing your mortgage qualifies you for a much lower interest rate than the amount you used to pay each month. Don’t sign the papers unless you have thoroughly understood the rate and terms of your loan. Check the terms if they are still the same as what you have agreed initially. In case the rates change, be sure that you’re still getting a good deal. You might need to look at different banks to find out which of them offers the best mortgage refinancing terms. You can also ask if you can get lower rates or discounts for automatic payments.

4. Am I aware of the reasonable length of the loan?

Mortgage refinancing enables you to lessen the burden of paying your loan. You have two options to consider: Choose a shorter length of the loan or the longer payment term. Each option has its implications. For shorter loan length, you’ll need to pay the higher amount and go debt free after a few years. A longer term, on the other hand, lets you pay a lower rate, but expect to pay more in interest. As much as possible, you should refinance to a maximum of fifteen years.

5. Am I protecting my home and my financial future?

When money isn’t available, taking out a loan is the easy way out. If you intend to refinance by drawing out the equity of your home so you can use the money for financing a college education, home improvements or paying off other debts, then you’re only increasing the interest rate by extending the life of your loan. This practice can put your home at risk, especially when you’re unable to keep up with your monthly payments. This misstep can also change the value of your home.

Make a wise decision. Contact a local expert to know more about mortgage refinancing:

Cape Coral Mortgage, Inc.
3512 Del Prado Blvd. S Ste106
Cape Coral, Fl. 33904
(239) 540 5555

Buying A Home For The First Time? How To Buy With Confidence

Having your own home gives you a sense of freedom to remodel and settle, not worrying about spending money on someone else’s asset. If you want to invest your money into something you can call your own, buying a home is a good idea, but you need to keep a few things in mind. Buying a new home involves a challenging process of searching for the right location and complying with bank requirements to ensure that you are qualified to take out a loan. These tips will help you make the right decision:

1. Prepare your documents

As daunting as it may sound, buying a home is manageable for anyone who is prepared. You need to go through a lot of processes, including securing all the necessary documents, so the bank will grant you the loan. When you’re trying to convince lenders to fork over a significant sum of money to you, it’s essential to provide proofs that you’re capable of paying them back. If they require you to secure financial documents, tax returns, pay stubs, bank statements and so on, be sure to gather them to increase your chances of getting the lender’s approval.

2. Review your qualifications before searching

When you run into financial issues, moving in will be challenging for you. You usually encounter this problem if you fail to assess whether or not you’re qualified to take out a loan. Finding your dream home and realizing you don’t have the financial capacity to pay for it is such a disappointment. Dream big, but always plan to buy within reason.

3. Know your financial options

If you intend to buy a home in Cape Coral, Florida, be sure to check all the options available to you. While the bank is the most common institution that assists you in buying your dream home, it’s also worth exploring other options such as credit unions, local lenders, regional banks, and mortgage brokers that work with various lenders. You might also want to consider at least three options, so you will know which of them offers a suitable mortgage for you.

4. Ask the right questions

When searching for your dream home, there can be lingering questions in your mind. While there’s a wide selection of homes for you to choose from, asking questions will narrow down your selection. Clarify information by asking for a detailed explanation. Whether you’re dealing with a real estate broker or the property owner, it’s essential to get clear answers to your questions.

5. Know the cost

The cost is the most crucial aspect of buying a home. You have to analyze your budget. Ask yourself how much you’re willing to spend to get your dream home. Without a doubt, purchasing a home can be costly. You need to get a loan so you can pay for the house you bought. Securing a loan might be easy so long as you’re qualified, but you also need to know if you’re capable of paying the amount over an extended period. Don’t buy a home without calculating the total amount of money you need to spend, or upfront expenses such as inspections, closing costs, and moving.

Buying a home is a wise investment if you know how to handle your finances wisely. Cape Coral is an ideal base for searching for your dream home. Heed these tips so you can find the perfect home that checks all the right boxes without breaking the bank. Explore our services so buying your own home will go as planned.

Cape Coral Mortgage, Inc.
3512 Del Prado Blvd. S Ste106
Cape Coral, Fl. 33904
(239) 540 5555