April 14, 2008
Shopping for a Mortgage on a Home or Condo in Gulf Shores, Orange Beach Home or Condo or a Fort Morgan Beach Home or Condo
Assuming you have already established that you can afford to make monthly payments on a mortgage for a Gulf Shores area home, second home or condo, you are already ahead of a lot of potential buyers.
You probably have already checked your credit report and found that you have a high credit score (ideally). Now you want to know what to look for when shopping for a mortgage.
Details to Check Out when Mortgage Shopping:
- Broker Fees
- Interest Rate
- Prepayment Penalties
- Length of Loan
- Application Fees
- Credit Report Costs
- Appraisal Expense
- Closing Costs
- Required Down Payment
Pitfalls to watch out for:
- Hidden Charges: Read and ask about fine print
- Avoid Fly-By-Nights: Make sure companies are reputable
- Strongly Consider Using a Local Blank or Mortgage Broker: I certainly don’t have anything against the bank or mortgage guy or gal that you have used in your hometown for years, but this is a resort market and there are idiosyncrasies that can slow down the approval process and in some cases throw it into a tailspin.
Have these things available for your mortgage broker:
- Bank Statement
- Tax Returns
- Paycheck Stubs or Copies
- Marriage or Divorce Papers
- Statements on Interest from any Investments
- Life Insurance Policies
Once you have collected all this information, you are in a better position to learn what type of mortgage you prefer and qualify for.
Two Loan Types:
- Fixed interest rate loans with consistent, equal monthly installments
- Adjustable interest rate loans: interest rate fluctuates
Primary Residence, Second Home or Investment Property: How you classify the property will play a significant role in the interest rate you receive.
If this sounds complicated right now, rest assured—I can help you get through the maze in one piece. Before you know it, you’ll be sitting pretty in your new real estate property in Baldwin County.
Let’s get started! Give me a call now at 251-978-7118 or send me an email at John@JohnRicks.com. I will also be happy to e-mail you a list of banks and mortgage brokers that I have used with success.