Today's Mortgages

Now days besides all the questions I get about our South Florida real estate market, I'm getting more and more questions daily about mortgages. So hopefully the following information will give you a little better understanding of this topic.

When the real estate market was extremely hot a few years ago and property values were going up sometimes twenty to thirty percent a year, banks and mortgage companies were very aggressive and lenient on their lending requirements. It wasn't uncommon to see investors with loans outstanding that equaled sometimes ten to fifteen times their yearly income. The main reason for this was mortgage fraud. South Florida is the mortgage capital in the United States. Because of so much fraud taking place, there have been approximately seventy percent more foreclosures in Dade County this year compared to last year.

So how does this affect you? It makes things a lot more difficult in order to get a loan. Just two years ago, if someone had average credit and very little money for a downpayment, it was extremely easy to get a mortgage - with very very little documentation. Today someone with excellent credit, a good downpayment, and even a previous relationship with a bank, a lot more documentation is necessary. In fact, since things have been changing so much in the mortgage industry, a lot of people that were approved a couple of months ago are now no longer able to get loans. That is why it is now more important than ever to do business with a bank or mortgage company that you hear good things about from family, friends, co-workers, business associates, etc. Below are most of the things needed for a home loan application. Since many banks are different, other things may be necessary.

1. Two years residence history
2. Two years employment history
3. Two years W-2s and current pay stubs
4. If self-employed, two years tax returns
5. Most recent two months bank/investment statements for all accounts
6. Current loans/debts listing names, addresses, account numbers, payments, and balances
7. Loan information on other owned real estate
8. Purchase agreement/offer to purchase new home or property

Finding a home and a loan are becoming more and more complicated in today's changing real estate market. Therefore, it is very important that you choose the right person to help you with probably the biggest purchase of your life.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com