How Do I Choose The Best Loan Program For Me?

 

The video puts this in more visual terms, but your personal situation will determine the best kind of loan for you.

By asking yourself a few questions, you can help narrow your search among the many options available and discover which loan suits you best.

  • Do you expect your finances to change over the next few years?
  • Are you planning to live in this home for a long period of time?
  • Are you comfortable with the idea of a changing mortgage payment amount?
  • Do you wish to be free of mortgage debt as your children approach college age or as you prepare for retirement?

Lenders can help you use your answers to decide which loan best fits your needs.

 

Suncoast One Title has offices in Punta Gorda, Port Charlotte  and North Port Florida.

How Do I Choose The Right Lender For Me?

 

There are some great tips in this video. Choose your lender carefully. Look for financial stability and a reputation for customer satisfaction.

Be sure to choose a company that gives helpful advice and that makes you feel comfortable.

A lender that has the authority to approve and process your loan locally is preferable since it will be easier for you to monitor the status of your application and ask questions. Plus, it’s beneficial when the lender knows home values and conditions in the local area.

Do your research, and ask family and friends.

Suncoast One Title Serving Port Charlotte, Punta Gorda and North Port!

What Is The Debt-To-Income Ratio (DTI)?

What is the Debt-to-Income Ratio? Can you afford to buy a house?

Check out this short video to see how they decide if you might qualify for a mortgage!

 

We close many loans in Port Charlotte, Punta Gorda and North Port, FL.

Measuring your existing debts against your existing income is one part of a lender’s required assessment of your ability to repay a loan.

Like the video says:  debts are existing financial commitments; a car payment is a debt a grocery bill is not.

To calculate your debt-to-income ratio add up your monthly debt payments and divide them by your GROSS monthly income. (Gross income is generally the amount of money you earn BEFORE taxes and other deductions.) The Federally-established debt-to-income target is a maximum of 43% for Qualified Mortgages.

If your ratio is higher there may be other loans available  – however, there may also be additional questions to establish your ability to repay, and the rates may be different than those available for Qualified Mortgages.

Studies suggest that a high debt-to-income ratio puts a homeowner at greater risk of challenges making monthly payments. So consider your situation and risks carefully before exceeding that suggested ratio.

If you have questions about purchasing a home in Port Charlotte, Punta Gorda, or North Port please feel free to contact us at
https://suncoastone.com/contact/

Suncoast One Title Serving Port Charlotte, Punta Gorda and North Port!

What Happens After I’ve Applied For My Loan?

 

Once you’ve supplied the 6 required piece of information and included any other information the lender deemed necessary, you’ll receive a Loan Estimate within 3 business days.
Once all the information has been verified IF the loan is approved the lender will provide a Closing Disclosure to you three business days before loan consummation. T
hey’ll usually set a date for loan consummation – which may also be at your closing meeting.
Closing is basically transferring ownership of the property; consummation is commmitting to the loan itself.
Once both are completed, you should be planning your move-in.

Suncoast One Title with three locations in Punta Gorda, Port Charlotte and North Port Florida.

How Can I Find Out About Schools & Community Resources?

 

The video puts this in more visual terms, but basically, contact the local Chamber of Commerce for promotional literature or talk to your real estate agent about welcome kits, maps, and other information.

You can get information about school systems by contacting the city or county school board or the local schools.

You may also want to visit the local library. It can be an excellent source for information on local events and resources and the librarians will probably be able to answer many of the questions you have.

 

Suncoast One Title Serving Port Charlotte, Punta Gorda and North Port!

How Can I Determine My Housing Needs Before I Begin The Search?

 

Like the video shows, your home should fit the way you live, with spaces and features that appeal to the whole family.

Before you begin looking at homes make a list of your priorities – things like location and size.

  • Should the house be close to certain schools? your job? to public transportation?
  • How large should the house be?
  • What type of lot do you prefer?
  • What kinds of amenities are you looking for?

Establish a set of minimum requirements and a ‘wish list.” Minimum requirements are things that a house must have for you to consider it while a “wish list” covers things that you’d like to have but that aren’t essential.

 

Suncoast One Title has three locations – Punta Gorda, Port Charlotte and North Port!

 

What Are The Major Types Of VA Loans?

 

What Are The Major Types Of VA Loans?

Major Veterans Affairs loan programs described in this video include:

1) Purchase Loans.

These help eligible parties buy a home at competitive interest rates with little to no down payment and little or no private mortgage insurance.

2) Cash Out Refinance Loans which enable taking cash out of home equity to pay off debt, fund school or make home improvements.

3) Interest Rate Reduction Refinance Loans also called Streamline Refinance Loans can help veterans obtain lower interest by refinancing existing VA loans

Other programs include:

4) Native American Direct Loans to help eligible Native American veterans finance homes on Federal Trust land.

And

5) Adapted Housing Grants to help veterans with service-connected disabilities buy, build or modify a home suited to their disabilities.

Many states offer additional resources to veterans, too.

Talk to your home lender about your situation.

Understanding Your Loan: Closing Disclosure Page 1

 

The first page of your Closing Disclosure documents:

  • The Loan Amount – the total you will actually borrow
  • The Interest Rate – which does NOT include the fees factored into the APR on Page 5

If this loan has a penalty for pre-payment or includes a balloon payment Page 1 will summarize the terms.

Projected Payments will show the chief cost components – Principal & Interest, Mortgage Insurance and estimates of your Escrow Payments over the life of the loan. You may see different columns for different periods if changes in terms such as mortgage insurance change payment totals.

Closing Costs summarizes your loan closing expenses, and Cash To Close adds the additional amounts due to give you the cash balance you will need in 3 business days.

Understanding Your Loan: Cash And Transaction Summaries

 

Page 3 of your Closing Disclosure will compare cash requirements from your Loan Estimate to your actual final charges. If “Did this change?” is “YES” notes for changed sections should be provided.

The bottom line final “Cash to Close” is the money you will need in-hand in three business days.

If your transaction has a Seller the summary table will show a line by line comparison of Borrower to Seller transaction details.

If there is no Seller you may see a Payoffs and Payments table instead.

Review the summary tables to understand the transaction and your financial commitments at loan consummation.

Understanding Your Loan: Closing Cost Details

 

Page 2 of your Closing Disclosure details specific closing costs.

Section A includes: Origination charges collected by the lender Origination fees paid to brokers, loan officers or other parties and Discount Points – prepaid interest. These figures should match your original Loan Estimate.

Section B covers services for which you could NOT shop. The total of these should be within 10% of the total from your Loan Estimate.

Section C covers services you could shop. If you chose providers from the lender’s written list, costs should be within 10% of Loan Estimate. The set of services you can shop may vary on different loans.

The Recording Fees in Section E should be within 10%; other costs in E, plus F, G and H, may vary from your Loan Estimate without tolerance limits.

This page will also break out the costs YOU will pay, before or at closing; the costs the Seller will pay, any costs paid by others and any credits from your Lender.