Since most of my career in the real estate field has been in the sunshine state Florida, I figured that I would talk a little about Florida home loans. First off lets start with the first type of Florida home loan, or other wise known as the mortgage. If you have been paying any attention to the real estate market lately you will know that Florida home loans are getting approved left and right due to houses on the market being sold for less, but here are some reasons that you will get denied if you are trying to get a home loan in the state of Florida.
You must be able to show that you have a steady rate of employment. This meaning that no one wants to lend 40 grand to a person that cannot hold a job for more than a month. I would say that you would have to have a steady work history, that will help out a lot when you are trying to get a mortgage in the state of Florida. If you are switching jobs every month that is not a good indication of steady working. And do not lie, that will only get you in trouble and put you in debt way over your head that you are going to have a hard time trying to get out of.
Next you must prove to the lender that you make enough money to be able to pay back the loan. Just because you have a steady work history does not mean that you are going to necessarily qualify to be able to get a mortgage. It will all depend on how much of a loan or how much the house is going to cost for this type of determination.
The last and certainly not least, is your credit. You will have to have a history of credit, and a credit score over 600, at least. If you have an excellent history of credit you will also be able to negotiate lower interest rates than those that are first time buyers and do not have much credit history.
Now let’s say that you have been living in Florida for a long time, say 8 years just for example and you have made every payment on your mortgage on time. You have about 8 years left but it is getting close to hurricane season and you want to make some home improvements to protect your home, and also raise the resale value, but you will need thousands of dollars to undergo these home improvement projects. This is where you can apply for a Florida home equity loan.
Basically a home equity loan is a 2nd mortgage, as you are using the equity that you have in your home, and you are getting money for it through a bank or other lender. This process is much easier than getting the initial mortgage, well, if you have been making your payments on time it will be much easier.
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