Tips for Qualifying for a Singer Island Home Loan!

Apr 04th 2011

Posted By: Jimmie McAdams @ 3:00pm In: General
Tags: condos, vacation homes, singer island fl, oceanfront, singer island lifestyles, singer island condos, singer island condos for sale, resort, the mcadams team

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Buying a Singer Island home is a great idea for a variety of reasons! The luxury condo or home that you choose will not only be your own private getaway on beautiful Singer Island, but it will also prove to be a very savvy investment decision! As the market continues to stabilize, the property value will continue to increase and your Singer Island home will be a promising return on investment. If you’ve been considering buying a vacation home or permanent residence on Singer Island, you may have noticed some changes that have been made in the housing market and, specifically, in qualifying for a home loan.

2011 brought about a slight change in how lenders are handling the loan application process. Because of the past few years in the real estate market; lenders have tightened the reins on who qualifies for a home loan. This, however, is not meant to be a discouragement as you search for your Singer Island home! As Singer Island Real Estate agents, our goal is to keep you updated on the real estate market and to give you as much help as we can! There are a few ways to prepare for qualifying for a home loan and we’ve listed them below.

- Know your borrowing limit- If you’re not sure how much you want to borrow, a good rule of thumb is to look at the Federal Housing Administration requirements. FHA will limit mortgage payments at 31% of gross monthly income before taxes for most buyers. This can help ensure that you’re not getting in too far over your head. If we’ve learned anything over the past few years, it’s to play it safe in the housing market.

- Have the right credit score- Credit scores are moving to the forefront of being approved for a Singer Island home loan. Most lenders are expecting a credit score of 600+ even for FHA loans. A good credit score will not only help you qualify for a home loan, but can lower your interest rate, which can save you thousands of dollars in the long run.

- Shop around- The interest rate is important, but there are other costs to consider such as discount points and even the type of mortgage loan. When shopping for best rates, compare various combinations of discount points and loan types. Your Singer Island Real Estate agent can help you decide on the best option.

- Consider a No-Closing-Cost Loan- If you have positive equity, but are lower on cash up front, you do have an option to choose a no-closing cost loan. This simply means that you’ll have a slightly higher rate, but the closing costs will be paid over time instead of up front.

These tips should help get you started in preparing to buy a Singer Island luxury condo or home! If you have any questions about where to begin in your home search or qualifying for a loan; please let us know! We’d be happy to meet with you, show you some of the homes that are currently on the Singer Island Real Estate market, and walk with you through each step of the home buying process!

Please feel free to contact us today to get started!