MORTGAGE STEP 4: THE PROCESS

Okay you found the house - CHECK
You were pre-approved for the loan - CHECK
You chose the perfect mortgage to fit your lifestyle - CHECK
Now we move into processing.

The toughest part of getting you into your new home is the processing. This is when all the documents are being verified and it definitely takes the most time. Even though you may not talk to your mortgage rep every day, rest assured the processors are very busy at work. Everyone in the process wants to see you in your new home as soon as possible!

So what can you do during this time? The number one thing you can do is keep the lines of communication open. Often your mortgage rep will need additional documents to verify information from you. Remember that the process is paused until you get what is needed back to the mortgage rep so the quicker you can return needed items, the quicker that closing date can be marked on the calendar.

So what NOT to do during this time? Do NOT open any new lines of credit during this processing period of time. Remember that credit is pulled one last time just before closing and if you've opened a new line of credit (for new furniture or a new car) that can affect your debt-to-income ratio and could prevent the closing from taking place. Feel free to plan out what you want to buy for that new house, but wait until after you close and you have keys in hand before heading to the furniture store to make those big purchases that may require more credit.

Also keep in mind that if you're buying a home that was a foreclosure or part of a short-sale, these transactions take even more time. Trust me, when I moved down to Florida I bought a house that had been foreclosed on and was technically owned by the government so every step had to be verified by a Fannie Mae rep in Washington...yeah they don't always move real swiftly up there.  I thought I had planned it perfectly, but the process took 2 more weeks than expected and I ended up in a hotel for a few weeks until I could get the closing completed. Needless to say I had to pack some extra patience during that time, but I made sure the mortgage processing folks here at Tropical Financial had exactly what they needed as soon as they needed it.

Remember that the end result is you and your family in your new home, and THAT is worth the wait!

^Amy

MEMORIAL DAY, NOT JUST FOR BARBECUE

On the Friday before a holiday weekend, I wanted to take a quick moment to remind everyone that all branches of Tropical Financial Credit Union will be closed on Monday, May 25th in observance of Memorial Day.

Did you know that Memorial Day is a day that has been around since the Civil War? Originally called "Decoration Day" it was a day to recognize those that gave their lives in battle.  By 1882 the day became widely known as "Memorial Day," and was usually celebrated on the 30th of May.  It wasn't until 1971 that the day moved to the last Monday of May to make the holiday a convenient 3 day weekend. That was also about the time people started planning family getaways, beach days, and barbecues. It was also about the time the real meaning of the holiday began to get lost.

As the daughter of an Army Lt. Colonel and sister to a Naval Captain, military holidays were never lost on me.  Don't get me wrong, I'm looking forward to spending an extra day of the weekend with my family, but at the same time those that gave their lives to defend this nation are never far from my thoughts. So as you gather with friends and loved ones this weekend, raise your glass to those brave men and women, for whom Memorial Day is really all about.

^Amy

MORTGAGE STEP 3: THE TYPE OF MORTGAGE

The next step in getting you into your home is making sure the TYPE of mortgage fits your needs. There's a common assumption that the way to go is the conventional 30 year fixed rate mortgage, but that actually may not make sense unless you're seriously planning on living in that home for 30 years. The average time a family lives in a home is actually LESS than 10 years!

You may be thinking, "I've found the perfect house I'm never gonna move!" But then life happens: families grow (or shrink as the kids move on with their own lives), jobs change, or your dream house becomes stale and boring after a decade. Any of these things can and DO happen so maybe looking at a shorter term loan might be the answer.

There are numerous home loan types available in the market, the trick is finding the best one that fits your life and your budget. For example an ARM (Adjustable Rate Mortgage) may have gotten a lot of bad press a few years ago, but it's actually a very good option for some people. This is where the loan is fixed for a set number of years (5 or 7 are typical) and then adjust each year after that. Where these loans make sense is when you know you'll be moving after a certain period of time. There's also shorter fixed loan terms that allow you to pay off the mortgage quicker, but keep in mind your payments will be higher.

You also will need to know if you're going to escrow the taxes and insurance into the mortgage payment and take that into account as you are putting your budget together. Your best bet is to talk to your Mortgage Loan Officer and review your options so that you have the best fit for YOU and your family!

^Amy