There are certain things Florida residents can do to improve their chances of being able to purchase a home in an area that has a high cost of living. Taking these steps as well as preparing carefully and avoiding expensive mistakes can be factors in getting an ideal rate for a mortgage.
In preparation for purchasing a home, prospective homebuyers should obtain a copy of their credit report and review its contents carefully. Copies of the report can be obtained free of charge on numerous sites.
The credit report will provide information about past and current financial accounts, including those related to credits cards, mortgages, student loans and more. It is very important that individuals examine the tradelines on their report, as 25 percent of people may have at least one error listed on their report. A credit report error can be a contributing factor to a lower credit score, and an excessive number of open tradelines can impact an individual's debt-to-income ratio. Both of these issues can negatively impact a prospective homebuyers ability to get a mortgage and their mortgage rate.
Getting preapproved for a mortgage is another important step in the journey to purchasing a home. Instead of using an instant pre-qualification, individuals should obtain an actual preapproval, which requires a review of their income and credit details by an underwriter. With a preapproval, individuals will have proof of their purchasing power, which can help them eliminate homes that are beyond their price range.
An attorney who practices real estate law may assist clients who want to purchase or sell a home. Legal assistance may be provided for resolving disputes regarding titles and zoning. The attorney may negotiate contract terms on behalf of clients and may draft and review purchasing agreements. The attorney may also oversee real estate closings.