Before You Apply

Should I pay points?

When most people begin the online search for a mortgage company, they start looking for the lowest rate. The lowest rate is important and you should compare rates on comparable loans from mortgage companies in your area. But remember, you should always compare the “whole package” that is, all fees and costs included in the mortgage. The “lowest rate” does not necessarily guarantee a mortgage with the “lowest cost” or even with the “lowest monthly payment”, in addition the terms of the loan should be considered. Is the “low rate” offered fixed for an attractive period of time? If not, to what and when will it adjust?, and is there deffered interest involved? negative amortization? other factor that will affect the monthly payment in the future?

You should compare the Annual Percentage Rate or APR as calculated and not the interest rate alone, hidden fees and origination points will have an adverse effect on the APR and thus identify the mortgage as having a higher cost than a mortgage with the same interest rate but no origination fees.

At Florida Home Trust we will work side by side with you, and explain in simple terms the different alternatives and advantages and disadvantages of each program. Ours is a policy of full and absolute disclosure, by doing this we assure a “win-win” situation on every transaction.

After selecting a mortgage product, the application process may prove to be the easy part, we will prepare you for your initial meeting. We will help you complete a 1003 (Uniform Mortgage Application Form), examine a copy of your credit report and collect al necessary documentation.

To speed up the mortgage process, stay in touch with your Loan Officer and be prepared to answer any questions they may arise.

Once complete, your application will be given to our processing department. Our processor will organize your paperwork and may verify your employment, bank balances, and other information as previously advised and agreed with you. Depending on the selected product we may not need to verify income or employment. Remember to ask your Loan Officer about our available “no documentation” programs.

Be sure to respond promptly to requests for information while processing is taking place.
Commonly requested items during processing that may not have been collected during the application include:

  • Updated account statements for listed assets in the application that may have changed in value.
  • Information about debts or credit report items that may have been delinquent or not accurate.
  • Evidence of your mortgage or rental payments, such as canceled checks.
  • An irrevocable gift letter if you are receiving a monetary gift from a relative.
  • The processor is collecting this information before presenting it to an underwriter. An underwriter reviews all the information in your loan file to determine if the application meets the approval guidelines. With approval, we will provide you with a letter of commitment, which is a promise from us to make a loan based on specific terms and conditions.
  • Getting a mortgage approved for your new or existing home might seem like finding your way through a financial maze. There are hundreds of available loan programs being offered from thousands of mortgage brokers, bankers, lenders, finance companies, credit unions, even stock brokerage firms.

Before you begin the process of choosing a mortgage company, a good first step is to determine a monthly mortgage payment that will fit into your current budget. A general rule is to keep your payment less than 30% of your gross salary. Don't forget to leave room for insurance, taxes, association dues and other costs that factor into your total mortgage payment.