Mortgage Process In Florida


By: Katie Ehm

Buying a home is a major financial decision, and getting a mortgage is often the biggest part of the process. When applying for a mortgage, lenders will carefully review your financial situation to determine whether you qualify for a mortgage and what interest rate you can get. As a former processor for My Easy Mortgage, I saw this first-hand and want to educate borrowers ahead of the mortgage application process. Here are a few things you can do to avoid jeopardizing your chances of getting approved for a mortgage:


Watch your purchases before applying for a mortgage

This was something I would see as a mortgage processor when working with clients. It is crucial to avoid making any major purchases. Examples include buying a new car, taking out a personal loan, or opening new credit cards. Any new debt can lower your credit score and increase your debt-to-income ratio (all your monthly debt payments divided by your gross monthly income), which can make you a less attractive borrower.


Don’t let your credit score drop. 

Maintaining a good credit score is something essential when applying for a mortgage. What score do lenders typically look for?  Lenders typically look for a credit score of at least 620 for a conventional mortgage. If your credit score is lower than that, you may be able to qualify for a government-backed mortgage, but you’ll most likely have to pay a higher interest rate. It is important to reduce existing debt, pay your bills on time, and avoid new credit applications to improve or maintain your credit score. 


Don’t change jobs or start a new business before applying or during the approval process for a mortgage. 

As a processor, I saw people change jobs during the mortgage process. This can slow down or even put your clear to close date to a halt. It’s important to leaders that you have a stable income and employment history. If you’re planning to make a job change or start a new business, it’s best to wait until you’ve been in your new position for at least six months before applying for a mortgage.


Don’t deposit large sums of money into your bank account. 

Again, as a processor, this was something I saw very often during the mortgage process. Lenders will want to know where the money came from for any large deposits. If you deposit a large sum of money into your bank account before applying for a mortgage or during the mortgage process, they may wonder if it’s from a gift or if you’re trying to hide debt. Making large deposits into your bank account can cause the lender to request even more documentation, which can slow down your clear to close or even bring it to a complete halt. 


Don’t be dishonest on your mortgage application. 

Lenders will verify all of the information you provide on your application.It is important for you to always be transparent and truthful throughout the application process. If you are caught lying, you could be denied a mortgage or even face criminal charges. Please always be honest!

What are some things you can do to enhance your appeal to lenders and increase your chances of getting approved at a good interest rate? Through the loan process, there are a few extra steps you can take to make sure you are more attractive to the lender. Here are a few tips to help you increase your chances of getting approved for a mortgage by the lender and can help get you the best interest rate possible.


Gain your pre-approval before you start house hunting.

Why is this important? This will give you an idea of how much you can afford to borrow and what your monthly payments will be. This pre-approval is not only important for you, but to sellers that are looking for genuine buyers. 


Shop around for the best mortgage rate. 

Don’t go after the first rate you see, it’s crucial to obtain quotes from multiple lenders before you settle on the right one.. You can use online mortgage calculators to compare rates and terms. Shopping around can help you identify the most favorable options, as far as rate. 


Make a down payment of at least 20%. 

Making this 20% payment will help you avoid paying private mortgage insurance (PMI). By making this down payment, you reduce the lender’s risk. PMI is an extra insurance policy that lenders require borrowers with less than 20% down payment to purchase.


Improve your credit score. 

If your credit score is below 620, there are things you can do to improve it, such as paying your bills on time, paying down debt, and avoiding new credit applications. Although this step may take some time, it is worth taking the steps to improve it. 


Be prepared to provide documentation of your income and assets. 

What will lenders want to see and review? Lenders will want to see proof of your income, such as pay stubs and tax returns. They may also want to see proof of your assets, such as bank statements and investment statements.

After having experience being a mortgage processor, for My Easy Mortgage, these are  some steps I believe in when applying for a mortgage loan and going through the loan approval process. Following these tips will help the process flow and make it easier for you, your loan officer, and your lender. There may be some things that take some time, but the time will be well worth it when getting approved and applying for a mortgage. 


My Easy Mortgage, a reputable mortgage broker located at 2405 Creel Ln STE 102, Wesley Chapel, FL 33544 and 16703 Early Riser Ave Suite 264 & 266 Land O’Lakes, FL 34638 has a team of experienced professionals who can guide you through the process and support you. Contact them at (813) 513-9846 to discuss your mortgage needs or visit our website at https://myeasymortgage.com to explore the best mortgage solution for your needs


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