Katie,

Since you're not going to be purchasing until next year the most important thing for you to understand is where do you stand now vs. what you'll need next year. The key elements of what you need to know are your credit score, they type of financing you will be looking for, how much of a loan will you qualify for, how much of a down payment you'll need, and what your closing costs will be.

Knowing your credit score is important because it will let you know whether you even qualify to purchase a home and will influence your mortgage rate. If your credit score is too low you won't even qualify for a loan. If it is low you can begin taking proactive steps to improve it so that you will be able to qualify for a loan in the future. Having a really good credit score will also allow you to qualify for the best type of mortgages with the best rates.

You'll want to understand what type of mortgage you qualify for. You may choose a conventional mortgage which typically will require a 10% down payment. If you qualify for an FHA loan you will only need a 3.5% down payment, and if you are active or retired military you may qualify for a VA loan. There are also bond programs available for first time home buyers that have income requirements that you may be able to qualify for.

You'll want to know what your monthly expenditures are going to be including your mortgage, insurance, and taxes so you will know how much home you can afford. Many first time home buyers are surprised to learn that they can't afford as much home as they think because of the other debts they already have (such as car payments, student loans, credit card payments, etc.). When you know how much of a mortgage you qualify for you can begin looking for homes that fit you.

Knowing the amount of your loan and the type of loan will then determine how much of a down payment you will need and how much your estimated closing costs will be. This will help you determine whether you have enough money saved up to purchase your home and if not you can begin saving now for next year's purchase.

You really can't determine an interest rate at this time as interest rates fluctuate depending on a number of things and rates today may not be at all what they will be next year. All scenarios you look at today will assume an interest rate, but you will want to look at scenarios where interest rates are higher than today's so you can plan for worse case scenarios.

The best way to answer all of these questions is to speak with a home mortgage consultant you trust. Working with someone you trust will allow you to establish a game plan to get you to your goal of purchasing a home and give you someone to guide you through the process. I also suggest working with a home mortgage consultant that has an office Jacksonville so you can sit down with them face to face.

Good luck with next year's purchase and if you need the names of great home mortgage consultants in Jacksonville, give me a call.

Scott Sullivan
Realtor
Prudential Network Realty
3535 Highway 17, Suite 10
Fleming Island, FL 32003

C: 904-327-5676
O: 904-269-1716
Scott.Sullivan@PrudentialNetworkRealty.com

Katie,

Congratulations on your upcoming move to the River City. There are a lot of things to consider and I am glad you reached out to get some advice. First and foremost, you and your Fiancée should gather your financial records and if you haven't already done so, get your free credit report from http://www.ftc.gov/freereports . Use this link and it will explain about this annual service. Fully review the report. If you have any derogatory items on your reports, you'll want to take this time to clear up any blemishes. This will help in the pre-approval process and minimize questions from potential lenders. If it's all clear, give yourselves a big pat on the back. You have worked hard to keep a pristine credit report.

Hiring a Realtor that is affiliated with a mortgage company allows you to "one stop shop". At Prudential Network Realty, we are affiliated with Gibraltar Mortgage and Title. That allows us to fully service all your needs under one roof. I don't mean to make this sound like an infomercial, but I think you can see that is does alleviate some of the stresses of "where do I go to get what I need?”

As far as rates and how much to put down, we can discuss that when we get you pre-qualified for your loan. Rates fluctuate and the down payment will depend on what mortgage program you qualify for. You can reach out to me at any time at 904-540-6612 on my cell.

I hope this answers some of your questions and I hope I have an opportunity to help your and your Fiancée find your prefect starting point in Jacksonville.

Regards,

Joe Romano, Realtor
Prudential Network Realty

Dear Katie,
If you are a first time homebuyer or have not owned property in 3 years, then you should contact a mortgage company that has an originator certified for the down payment assistance programs available. There are about 14 companies that have certified originators for the programs. If you are seeking a renovation loan because the home needs repairs then it would be different loan originators.

I would recommend Jeff Lowery with EverBank at 904-623-6718, Tom Lemmon with Bank of America at 987-8415, Jennie Blue with Compass Bank at 564-8700, or Bob Gallagher or Mary Keene with Suntrust Bank at 381-4330 or 541-2440 ext 224, for first time home buyers. Please let them know that you were referred by Brenda Gravitt CRS, GRI with Coral Shores Realty.

If you are seeking an FHA203K rehabilitation loan contact Lewis Sport with Wells Fargo at 779-4239. It would be different contact info if you are seeking a Home Path renovation loan.

The important thing is to seek financing that fits your particular financial circumstances as well as keeping in the mind the type of property you are purchasing. The loan needs to fit the circumstances.

In Jacksonville there are several down payment assistance programs like H2H, FHOP, FHLBA, FL assist, NSP, and probably some others I am leaving out. If you close on a home by Nov 30, 2009 you may qualify for up to $32999.00 in down payment assistance but after that date the amounts will be different. There are home buying education classes offered that will provide you with valuable information. Go to http://www.hud.gov for a list in your area.

Brenda Gravitt CRS, GRI
Coral Shores Realty
bkgravitt@gmail.com

Hi Katie, Any of us can assist you in getting with a good mortgage person, however if you are going to buy next year the interest rate will change between now and then. As of Friday an FHA mortgage with 3.5% down was 5.25% for 30 years fixed rate. I will be glad to assist in any way possible. Good luck and way to go on your decision to buy! Jack Vance (904.504.1215)

HI Katie,
I would be more then happy to go over loan programs to figure out the perfect fit for your situation. Please feel free to give me a call or e mail me. I look forward to earning your business.

Melissa Antenucci
Ameritrust Mortgage
561-417-9221
MelissaA@AmeritrustMortgage.info

Dear Katie,

First, congratulaions!

Next, here are some sites that can help educate you as to what you need to know about applying for a mortgage, the mortgage process, and the home purchase process as well.

http://www.floridarealtors.org/AboutFar/homebuyercenter/index.cfm
http://www.fha.com/

The first site is the Florida Association of Realtors website, and has terrific info. The second site is the Federal Housing Authority site, which is the lowest-downpayment loan available., and very common for first time homebuyers.

The standard downpayment for an FHA loan is 3.5% of the purchase price. The interest rates are dictated by the market and market conditions, so it's not possible to predict what the interest rates will be next year. The other factor affecting your interest rate will be your and your fiance's credit scores - there are websites you can get your scores from, or, you can contact a mortgage pro now to have them pull it for you.

If I can help further, please do not hesitate to call/email/text me.

Good luck!
Carol ZIngone
Broker Associate
Prudential Network Realty
904/993-9048

Katie,
I agree with Bill. With your potential pruchase being made next year, you will only be able to base your information off of current rates. A good faith estimate will show you what your downpayment, closing costs and monthly payments will be. It is also a good idea to get with a mortgage professional prior to beginning your search. He/She can pre approve you for a purchase amount which will help in your search for a home and also in negotiating the best price for it.

I would love to help you in the future. Good Luck!
Holly

F,

Because there are a number of variables and each case is individual, it is our recommendation to meet with a couple loca specialists that can speak to your personal and specific needs.

Remember to request a "good faith estimate" from each. This is simply are written account of programs and rates the agent specifiec for you.

Bet wishes.
The Eckler Team