If you are thinking living in Miami and purchasing property with a mortgage there are many things you need to know in advance to starting your Miami property search. According to the Federal Reserve’s quarterly Senior Loan Officer Survey, it’s getting easier to get approved for a home loan, however most buyers who are thinking about living in Miami are not buying homes, rather condos and there are more hoops that a new buyer needs to jump through in order to secure a mortgage on a Miami condo.
Between July – September 2012, fewer than 6% of banks tightened mortgage guidelines — the fourth straight quarter that’s happened– and roughly 10% of banks actually loosened them. This is good news for Miami condo buyers, however Florida is still a very strict area for banks to lend in so it’s important to do your homework in advance and work with a Realtor who knows how to navigate you through the process.
The upside to the whole process is now U.S. homeowners have better access to today’s ultra-low mortgage rates. Today’s mortgage applicants should still expect to provide lenders with documentation to support a proper loan approval.
Some of the more commonly requested documents include :
- Tax returns, W-2s, and pay stubs : In order to prove income, lenders will want to see up to two years of income documentation. Self-employed applicants may be asked for additional business information. Borrowers earning income via Social Security, Disability Income, Pension or other means should expect to provide documentation.
- Bank and asset statements : To verify “reserves”, banks will often require up to 60 days of printed bank statements, or the most recently quarterly reports. Be prepared to explain deposits which are not payroll-related — banks adhere to federal anti-money laundering laws.
- Personal identification documents : To verify your identity, banks often require photocopies of both sides of your drivers license and/or U.S. passport, and may also ask for copies of your social security card.
In addition, if your credit report lists collection items, judgments, or federal tax liens, be prepared to discuss these items with your lender. Sometimes, a derogatory credit event can be eliminated or ignored during underwriting. Other times, it cannot.
The more information that you share with your lender in advance, the smoother your mortgage approval process can be.
As the housing market improves and lender confidence increases, mortgage guidelines are expected to loosen more. Our hope is that in 2013, there may be more open lending to even more mortgage applicants and to those interested in living in Miami.
Details Provided by Our Mortgage Guru * Living in Miami Mortgage Approvals : Documents You’ll Need For Your Lender