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Mortgage Lender Sarasota County | Bank of England Mortgage | Venice

Bank of England Mortgage Blog, TOPIC: 5 Questions to Ask Before Buying a Home

If you are in the market for a home, there’s a lot of questions you need to think about. In fact, your head may be flooded with questions. We understand. Here are the top questions you need to ask before you sign your name on a home purchase.

Questions to Consider

One of the first questions you need to ask is how old the HVAC unit is. This is a really important question, especially in Florida where we need air conditioning year-round. Most HVAC units will have to be replaced in 15 to 20 years so this is a very important question to ask.

Another really important question is about the roof. In Florida, you are likely to get storm damage on your roof from time to time. You need to make sure that your roof is strong enough to withstand all of the Florida weather. The newer the roof is, the more likely it is up to the challenge.

Another really important question is about the roof. In Florida, you are likely to get storm damage on your roof from time to time. You need to make sure that your roof is strong enough to withstand all of the Florida weather. The newer the roof is, the more likely it is up to the challenge.

Third, you need to ask when the last time was that the water heater was replaced. If it has been a while, you need to prepare yourself to replace it sooner rather than later.

Fourth, if you are buying a house that includes appliances, ask about the age of those appliances. If you have to replace a refrigerator, washer, or dryer, those costs add up.

Last but not least, ask about the type of foundation the home has, and whether there have been repairs to the foundation. If at all possible, you are going to want a concrete slab foundation, especially here in Florida. Having a foundation that has cracked in the past is something you need to consider before you buy a house.

When you’re ready to think about a mortgage, our brokers at Bank of England Mortgage are just a phone call away at 941-361-1280 or come by and see us at 235 North Orange Avenue, Suite 200, in Sarasota.

For informational purposes only. This is not a commitment to lend or extend credit. All loans are subject to credit approval including credit worthiness, insurability, and ability to provide acceptable collateral. Not all loans or products are available in all states or counties. Underwriting decisions may be provided by a third party. Always follow the advice of your tax advisor. Bank of England is not affiliated with any government agency. Bank of England Mortgage is a division of Bank of England.

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Mortgage Lender Sarasota County | Bank of England Mortgage | Venice

Discover These Home Loan Milestones!

Never bought a home before? You might not know what steps will take you from home looker to homeowner! If you are unsure of the process, here are some simple steps you can take to reach your home loan milestones.

Take a Look at these Home Loan Milestones

First, before you do anything else, you will need to go through the prequalification process. You will begin the initial paperwork with a loan officer that will help you figure out your budget, and determine how much house you can afford. That way, you’ll be able to start looking for your home.

After prequalification, you need to really go and look for your perfect house. Once you have found the perfect house for you, you will need to put in an offer on the home. Your real estate agent will handle the negotiations, but you need to handle the loan paperwork with your lender. This means you will need to document your income, your assets and your obligations.

Your loan package will then go through processing. This will take a little time, so be patient. Once processing is complete, the loan must be approved by the underwriter. There may be some contingencies and regulations. For example, the homeowner may have a few minor repairs to make by closing. Your final step is the closing. You’ll want to bring the amount of money and any other documentation requested to the closing. Once you sign the paperwork, that home of your dreams is now yours! Congratulations!

If you’re ready to take the next step, and prepare for your next home loan, we welcome you to  give Bank of England Mortgage a call at 941-361-1280. You can also come by and see us at 235 N Orange Avenue, Suite 200, in Sarasota. We can’t wait to help you achieve the home of your dreams!

For informational purposes only. This is not a commitment to lend or extend credit. All loans are subject to credit approval including credit worthiness, insurability, and ability to provide acceptable collateral. Not all loans or products are available in all states or counties. Underwriting decisions may be provided by a third party. Always follow the advice of your tax advisor. Bank of England is not affiliated with any government agency. Bank of England Mortgage is a division of Bank of England.

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Mortgage Lender Sarasota County | Bank of England Mortgage | Venice

The Best Home Loan Option for You

You may be looking to buy a house, and if you are, we commend you! Mortgage rates are great right now, and you’d be crazy not to take advantage of these great loan deals. If you haven’t had a home loan before, you may not understand the differences between mortgages. Here is our brief explanation of the types of home mortgages you can get.

A fixed-rate mortgage has an interest rate that never changes during the life of your loan. This means that your loan payment will stay the same for your loan period. If you plan on staying in your house for a long time, this loan might be perfect for you. However, if interest rates are high, you may want to opt for another loan instead.

Adjustable-rate mortgages, or ARMs, have an interest rate that is adjusted from time to time over the life of the loan. For example, a 5/1 ARM means that the interest rate is adjusted after five years, and then is adjusted every year. If you plan on staying in your house for a short period, or you want lower payments to begin with, choose this mortgage option.

There is a third mortgage option, especially for public servants and people under a certain income level. You can choose to get a down payment assistance loan, which will figure in a down payment into your loan package. This means that you will have to put very little money upfront, and you may be eligible for a low-interest mortgage. These are great mortgages to get if you qualify for them, but they aren’t available to everyone.

When you are ready for a new mortgage, Bank of England Mortgage is here to help. Give us a call at 941-361-1280 or you can come by and see us at 235 North Orange Ave, Suite 200, in Sarasota. We look forward to working with you!

For informational purposes only. This is not a commitment to lend or extend credit. All loans are subject to credit approval including credit worthiness, insurability, and ability to provide acceptable collateral. Not all loans or products are available in all states or counties. Underwriting decisions may be provided by a third party. Always follow the advice of your tax advisor. Bank of England is not affiliated with any government agency. Bank of England Mortgage is a division of Bank of England.

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Mortgage Lender Sarasota County | Bank of England Mortgage | Venice

5 Things to Consider When Buying an Investment Property

Investment properties are a great way to make the most of your money. If you intend on purchasing a property and renting it out, there are a few things to take into consideration. Read on for five things to consider when buying an investment property.

The first thing to consider when buying an investment property is the down payment. It is no secret that buying property can cost a lot of money, but you should be prepared for all of the fees you will encounter during the purchasing process. The down payment is the initial payment you put down on the property, which is about 15 to 25 percent of the total property cost. When putting down this down payment, expect higher interest rates and slightly more restrictive guidelines because of the fact that you are using the property as a rental property.

The second thing to consider when buying an investment property is property management. Are you ready to be a landlord? Landlords are busy people. You will need to sort through lots of paperwork, stay organized, and be available to tenants 24 hours a day.

Third, estimate the rental income. When you rent your property to tenants, how much will you charge them per month? You need to make sure this number is low enough that it is competitive with other properties in the area but high enough that it covers the mortgage and maintenance of the property.

The fourth thing to consider is the expenses and costs. Once you purchase the property, you need to maintain it. Landscaping costs, appliance repairs, flooring replacements, fresh coats of paint, and so on add up in cost. You want to make sure you’re making enough money to maintain the property, even when sudden problems arise.

The final thing to consider when purchasing an investment property is the risks of renting. Renting can be a risky business. You may not always have tenants to fill the space. Even if you do have tenants, they may damage the property. Will you be able to afford to make payments on the property when nobody is renting? Can you afford to pay for damages? Keep all of this in mind when buying a rental property.

For assistance purchasing a rental property, get in touch with us at Bank of England Mortgage. You can reach our team at 941-361-1280.

For informational purposes only. This is not a commitment to lend or extend credit. All loans are subject to credit approval including credit worthiness, insurability, and ability to provide acceptable collateral. Not all loans or products are available in all states or counties. Underwriting decisions may be provided by a third party. Always follow the advice of your tax advisor. Bank of England is not affiliated with any government agency. Bank of England Mortgage is a division of Bank of England.

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Mortgage Lender Sarasota County | Bank of England Mortgage | Venice

When is the Right Time to Purchase Your First Home?

If you have been living with your parents or living in an apartment for a while, you may have been dreaming about buying your first house and becoming a homeowner. When you’re ready to start looking at houses, what steps do you need to take, and when is a good time to start looking? We have some answers for you.

Think About Where to Live

Before you can decide on a budget, you’ll need to think about where you will be in five years. Will you be in the same career, or will you have moved on? Will you be expanding your family, or will you want to move out of state? If you aren’t sure about the answers to these questions, you’ll need to give it some thought before moving to your next step.

Think About Your Budget

Whether you have a traditional job or a nontraditional job, you’ll need to know your income by the month. That way, you will know how much house you can afford, and you’ll be able to think about incorporating a mortgage payment into your monthly bills. While you’re thinking about your budget, it’s time to have a look at your credit score. If it is less than desirable, it’s time to work on bringing it up before you talk financing.

Do Your Research

When you have a good idea of how much house you can afford, it’s time to talk about what kind of house you want. This is where the fun begins. Start looking around at houses in the neighborhoods you want to live in. Do your research on neighborhoods. Do you want one that is close to schools and playgrounds, or close to downtown and shopping? Do you want to live close to water? How many bedrooms and bathrooms do you want? Once you understand where you want to look, and what you can afford, you’re well on your way to getting your first home.

If you are ready to buy your first home, Bank of England Mortgage is here to help. We invite you to give us a call at 941-361-1280. You can also come by and see us at 235 N Orange Avenue, Suite 200, in Sarasota. We look forward to working with you!

For informational purposes only. This is not a commitment to lend or extend credit. All loans are subject to credit approval including credit worthiness, insurability, and ability to provide acceptable collateral. Not all loans or products are available in all states or counties. Underwriting decisions may be provided by a third party. Always follow the advice of your tax advisor. Bank of England is not affiliated with any government agency. Bank of England Mortgage is a division of Bank of England.

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Mortgage Lender Sarasota County | Bank of England Mortgage | Venice

Eight Tips for Buying a Second Home

If you have the means, buying a second home can be a great idea. With a second home, you can retreat to a vacation spot. You can also rent this home out to make some extra money. Whether you want a second home to have a home away from home or you’re looking to make some extra money, here are eight tips for buying a second home:

First, shop for homes that are easy for your family to get to. Did you know most vacation homes are within a 2- to 3-hour drive from a family’s primary home? If your second home is too far from home, you will be less likely to go there. You want to get your money’s worth out of your second home, so consider purchasing a home that is easy to get to either by car or by plane.

Next, pick a location you love. Does your family love the beach? What about hiking? Pick a location that makes the most sense for your family. A waterside vacation home is excellent for beach lovers, while a cabin in the woods is perfect for the camping family.

Third, create your budget. How much money can you afford to spend on an extra home? Consult with a mortgage advisor to receive more information about second home expenses and fees. A mortgage advisor will help you understand what type of second home you can afford. They can also provide some perspective as to what it is like to own a second home. When you work with a mortgage advisor, you don’t have to expect the unexpected.

The fourth second home buying tip is to look for properties that are already furnished. Not only can buying new furniture be expensive, but so is moving it. Instead of spending time and money furnishing a home, pick a home that has everything you already need.

Fifth, research property management companies early in the home buying process. The sooner you find a property management company that works for you, the sooner you may be able to find an appealing property.

Next, trust your advisors. Realtors and financial professionals are professionals for a reason. When you work with these professionals, you can trust the advice and guidance they offer. This also takes stress off of you. Buying a second home can be a hassle, but it doesn’t have to be.

The seventh tip for buying a second home is to think like a renter. Even though you will be buying the home, approach your second home purchase as if you are renting it. This way, you can gain an idea of what a guest in the home would want. When renting out your second home, you want it to be as accommodating as possible.

Finally, don’t wait too long on a property that seems perfect. The perfect house can go fast. If you’ve found that dream second home, go for it. It could be gone before you know it.

Now that you know some valuable tips for buying a second home, you’re ready to work with the professionals at Bank of England Mortgage. We can help you purchase your dream second home. Get in touch with our team by calling 941-361-1280 today!

For informational purposes only. This is not a commitment to lend or extend credit. All loans are subject to credit approval including credit worthiness, insurability, and ability to provide acceptable collateral. Not all loans or products are available in all states or counties. Underwriting decisions may be provided by a third party. Always follow the advice of your tax advisor. Bank of England is not affiliated with any government agency. Bank of England Mortgage is a division of Bank of England.

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Mortgage Lender Sarasota County | Bank of England Mortgage | Venice

What is Escrow and How Does It Work?

The easiest part of buying a house is deciding to. Once you’ve decided to begin the home buying process, things get a little more difficult. We’re here to help, so here’s what you should know about escrow.

Escrow is a type of financial transaction that protects both the borrower and the lender from theft. Because the real estate industry involves large sums of money, escrow is an ideal way for both parties to protect themselves during transactions. With escrow, an impartial person or bank holds the money for both parties. This money may only be accessed for the original and pre-agreed purposes. Escrow makes things safer for home buyers and lenders.

Escrow is closely related to earnest money. Earnest money is also known as a good faith deposit. It is the buyer’s investment in their real estate purchase. Typically earnest money is 1 to 3 percent of the home’s listed price. The earnest money is held by the same bank or impartial person who holds the escrow.

When buying a house, you should know your earnest money goes into an escrow account, which is the safest place for that money to go. You should also know this money will be used to pay for your homeowner’s insurance and property tax expenses. “Escrow,” “impound,” and “reserves” are all words used interchangeably by lenders, but they all mean the same thing. Meanwhile “prepaids” is a term that is used when talking about tax expenses and insurance money. When an escrow closes, this means the contract is confirmed and the earnest money is dispersed. This process is performed by an escrow officer, financial professional, or lawyer. Finally, know that escrow sometimes is used for special negotiation terms (like final costs or rent back).

Now that you know all about escrow, you’re ready to begin the home buying process. For assistance, contact  Bank of England Mortgage. You can call us now at 941-361-1280!

For informational purposes only. This is not a commitment to lend or extend credit. All loans are subject to credit approval including credit worthiness, insurability, and ability to provide acceptable collateral. Not all loans or products are available in all states or counties. Underwriting decisions may be provided by a third party. Always follow the advice of your tax advisor. Bank of England is not affiliated with any government agency. Bank of England Mortgage is a division of Bank of England.

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Mortgage Lender Sarasota County | Bank of England Mortgage | Venice

FHA Loans Offer More Than Low Down Payment

If you’ve heard of FHA loans, you probably know these loans offer low down payments. In addition to offering low down payments, FHA loans have many other benefits. Learn about what FHA loans have to offer by reading on.

FHA stands for Federal Housing Administration. The FHA was created by Congress in 1934 during the Great Depression. During this time, many construction workers lost their jobs, mortgages required repayment within three to five years, and a majority of Americans were renting their homes. The goal of the FHA was to increase home construction, reduce unemployment, and expand the options for renters who wanted to purchase homes.

Did you know the FHA is the only government agency that doesn’t cost U.S. taxpayers anything? The mortgage insurance that homeowners pay covers the costs of the program. This includes payments to lenders for mortgages that have defaulted.

So how do FHA loans work? These loans are offered through lenders approved by the Federal Housing Administration. Borrowers of these loans make mortgage insurance payments to the FHA for the guarantee of the loan. Because of the FHA program, lenders are more comfortable offering flexibility when it comes to credit guidelines and down payments. This means lenders can make small down payments, sometimes as low as 3.5 percent.

If you have less than favorable credit, you may also earn approval for a FHA loan.

Yet another perk of an FHA loan is the low closing costs. The allowable closing costs and fees for an FHA loan are determined by the Department of Housing and Urban Development. These costs are usually between 3 and 5 percent of the loan amount.

Are you preparing to purchase a home? If you are, reach out to the team at Bank of England Mortgage. You can contact us by phone by calling 941-361-1280 today!

For informational purpose only. This is not a commitment to lend or extend credit. All loans are subject to credit approval including credit worthiness, insurability, and ability to provide acceptable collateral. Not all loans or products are available in all states or counties. Underwriting decisions may be provided by a third party.  Bank of England is not affiliated with any government agency. Bank of England Mortgage is a division of Bank of England.

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Mortgage Lender Sarasota County | Bank of England Mortgage | Venice

Bank of England Mortgage Blog — Why Do People Refinance Their Homes?

Buying a home can be the biggest financial decision any person can make. Over time, it may become apparent that refinancing might save money over the long run. But refinancing is not a quick or expense-free solution. Let’s look at why some homeowners will refinance their homes.

Owning a home is an investment, and homeowners want their home to gain value over time so they can eventually realize a profit. Refinancing is one tool that can assist in financial planning and managing expenses. Here are some reasons why people refinance their homes:

  • To get a lower interest rate on the mortgage when rates drop
  • To get a different loan term, such as refinancing from a 30-year to a 15-year mortgage to save interest costs
  • To get cash out of their home by refinancing for more than is needed to pay the existing mortgage
  • To change the type of mortgage, such as converting from adjustable-rate to fixed-rate
  • To remove someone who co-signed the original mortgage

A more difficult situation can arise when owners have financial difficulties and feel the need to create a mortgage with a longer term to reduce their monthly payments. This can be a hard decision because the owner must have the necessary refinancing fees available to secure a longer term. A positive reason to refinance can occur if an owner gets a raise or a new job with a much higher salary level. This may allow them to refinance for a shorter term and reduce the amount of interest they will pay.

Regardless of the reasons for homeowners to refinance, Bank of England Mortgage in Sarasota Florida is ready to help you find the refinancing program that suits your needs. For more information on refinancing your home please call 941-361-1280.

Disclaimer: For informational purposes only. Bank of England is not affiliated with any government agency. Bank of England Mortgage is a division of Bank of England. NMLS 418481. Member FDIC

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Mortgage Lender Sarasota County | Bank of England Mortgage | Venice

Bank of England Mortgage Blog — What is Mortgage Insurance?

At Bank of England Mortgage, we feel our customers should be well-informed about their mortgage options. One way we do that is to help them understand some of the terminology used in the mortgage business. One term heard frequently is mortgage insurance — what is it and when might a customer need it?

Mortgage insurance, or private mortgage insurance (PMI), is an insurance policy required by lenders when a homebuyer puts less than 20% downpayment on a home. PMI may also be required with some government-backed mortgages. A mortgage insurance policy is paid by the borrower to protect the lender in the event of a future default in payments by the borrower. Lower down payments are considered higher risk by lenders because they have less confidence the buyer can continue to make payments on time in the future. The PMI will pay back the remaining mortgage balance to the lender in the event the borrower is unable to make payments.

There are typically two types of PMIs. A single-payment PMI is precisely that — a one-time payment to cover the cost of the mortgage insurance that is paid at closing. Bank of England Mortgage can discuss whether this is a better option for you than a monthly payment PMI policy. When a borrower accepts a monthly payment plan, the PMI by federal law will be canceled when the loan-to-value (LTV) of the mortgage reaches 78%. At that point, a borrower is considered a lower risk, and the insurance is not needed.

Although PMI results in a higher mortgage cost each month for a new homebuyer, it allows people to purchase homes sooner because they don’t have to wait until they accumulate enough money to put down 20% on the mortgage. If you are interested in purchasing a home but don’t have the necessary downpayment to avoid PMI, come to Bank of England Mortgage and discuss your needs with us. We can show you a variety of mortgage programs that may get you into your home faster than if you wait. We look forward to serving you at Bank of England Mortgage.

Disclaimer: For informational purposes only. Bank of England is not affiliated with any government agency. Bank of England Mortgage is a division of Bank of England. NMLS 418481. Member FDIC