Mortgage Law in Florida
In Pinellas County, Florida, a mortgage is a loan given to buy a particular piece of property - usually a house - with the property being purchased with the loan serving as collateral for that same loan.
Taking out a mortgage is not a trivial matter. But, if you want to buy a house, this is likely only way it will be possible. A mortgage permits a person to purchase property costing far more than what they currently have, by paying the purchase price in manageable installments.
When you buy anything on credit, however, you are going to end up spending considerably more than the purchase price, because you have to pay interest. Obviously, a lender couldn't stay in business if it didn't charge interest on loans, this would cause it to (at best) break even on every loan it issued.
Most people find this arrangement to be mutually beneficial - the lender makes a profit, and the borrower is able to buy a home where it would otherwise have been unrealistic.
Getting a Mortgage in Pinellas County, Florida
The most crucial factor in getting a mortgage on favorable terms in Pinellas County, Florida is having a good credit rating. Credit ratings exist to make it easy for prospective lenders to assess a person's risk as a borrower. A good credit rating shows that you paid most or all of your debts on time, and are likely to continue to do so. A poor credit rating says the opposite, and will make it much more difficult to get a loan, and even if you do, the interest rate is likely to be much higher.
The majority of lenders require a down payment on any mortgage. This is typically represented as some percentage of the total purchase price. Lenders require this to show that the borrower is financially solvent, indicating that they are usually responsible with their money. You should ensure that you have more money than the required down payment saved up, so that making this payment doesn't hurt your financial situation.
It's also necessary to be realistic about your financial situation when calculating monthly payments. Obviously, a more expensive house will result in higher mortgage payments. While buying a house on credit may tempt you to get something more expensive than you can really afford, you should resist this temptation. Having a big, expensive home won't count for much if you can't make the payments, and it gets foreclosed. You should make a reasonable accounting of the expenses associated with home ownership. This includes mortgage payments, property taxes, and others.
Once everything is in order, it comes time to complete the mortgage agreement. Once this is signed, there is typically no going back, so you should make sure that you understand every single term in this long-term agreement.
Can a Pinellas County, Florida Real Estate Attorney help?
Buying a home is not a decision to be made lightly. It is necessary to obtain competent legal and financial advice before purchasing a home. To that end, a knowledgeable Pinellas County, Florida real estate attorney should be consulted.