How to get a mortgage in Florida?

The real estate market in the Sunshine State is enormous! And you are faced with several important decisions: buy a house for living, buy an investment property, or refinance? Whatever your decision, you need to know how the mortgage process works in Florida. After all, a positive home-buying experience depends on the amount of information you have.

But don't worry in advance; read a bunch of literature and comments on the Internet — to get a loan without stress, you can simply contact LBC Mortgage. We work in the Sunshine State and help not only get a mortgage in Florida but also provide options for no-closing-cost loans.

Working with a mortgage broker can save you time and money. While we do the paperwork, you can focus on finding your dream home. But let's take a closer look at what to expect when applying for a mortgage in Florida.

Florida Home Buying Process

Get prepared in advance

Checking your financial situation is a crucial step in the loan process. Therefore, as soon as you consider buying a house, immediately analyze your expenses, income, and credit rating.

We also recommend asking yourself a few essential questions:

  • What is my credit score? (you can check it at annualcreditreport.com)
  • How much savings do I have, and how much can I save to buy a house? (the answer to this question is important for your down payment — on average, it will be from 10% to 20%, but there are options with a lower or even zero payment.)
  • How much monthly payment can I afford? (we are talking about comfortable payment and not about a situation where you need to constantly save and deny yourself the purchase of things.)
  • What kind of house do I dream of? How many bedrooms should it have?
  • Who will help me get a mortgage? (contact LBC Mortgage for expert assistance in the loan process.)

Answering these questions can help you prepare for buying a home and avoid surprises.

Get pre-approved

Why do you need pre-approval at all? First, it helps you understand what loan amount you can expect and avoid false expectations when looking for a home. It's not a commitment to buy, so once you're done looking and ready to make an offer on a property, you can give the details of that offer to a lender who provided pre-approvals.

A pre-approval letter gives you an advantage over buyers if you're competing for a home. But you don't need this document to make an offer to purchase. Getting pre-approved shows the seller that you are serious about buying a home and have the necessary funds.

Florida Home Buying Programs You May Be Interested In

  • Bank Statement Program is a program for self-employed people with a solid financial flow in business but can't provide W2 information. Typically, borrowers must have 12 months of bank statements (in some cases three), a credit score 640, and a down payment of 10%.
  • Stated Income / No-Document Program is one of the simplest programs on the market. Your employment status is not necessary here because the most important thing is a down payment of 20% and a cash reserve for 3-6 months of the mortgage.

Search for real estate in Florida

Take your time to compare prices and offers on the market. Also, contact a local realtor who can help you find the best option for your budget. If you are looking for housing in a specific area, drive around it and look at the houses and infrastructure. Finding a home is a crucial and responsible process that should be carefully considered if you plan to reside in it for a long time.

Submit an offer

Before making an offer, consider how much you'll spend on closing and home renovations. This expense should be fine with your budget. If all is well, send the offer to the seller in writing.

Close the deal

The most responsible and critical stage includes exchanging money and signing documents transferring ownership of your new home. Make sure to give yourself enough time from submitting your loan package until the closing day so that everything is processed appropriately and efficiently.

Also, remember that closing costs can range from 1% to 6% of the home's value — this amount is affected by both the price of the property and the type of loan or down payment amount.

Sign up for a free consultation to get comprehensive information about the mortgage process.

Rejoice!

After all, you are now the owner of a home in the Sunshine State!

Now, you know a lot more about the mortgage process in Florida. What will be the next stage?

So, if you've read this far, we want to ask you — are you ready to start searching for the best rate? Remember, you can always ask LBC Mortgage questions during a free consultation. Our mortgage broker has extensive experience in the Florida market, so we can help you find the best mortgage solutions. Let's start your mortgage journey together!