Palm State Mortgage Company isn’t going to point fingers or name names. However, the minute we saw a certain mortgage company’s commercial during the Super-bowl, we knew there would be a backlash!

The company advertised completely financing a house in less than ten minutes–in fact less than that!  Almost immediately the Consumer Financial Protection Agency tweeted,

“When it comes to mortgages, take your time, ask questions and know before you owe.”

Home Mortgage Seekers:  Beware Of Fast Financial Decisions!

The truth is the company was actually promoting an AP that will show you various interest and payment rate options for various types of loans when you input certain financial information into your phone.Take your time with a home loan at Palm State Mortgage.

Before you try to obtain a 10 minute home mortgage loan, we have a few questions…

A.  Even if you can get speedy approval for a loan, would you really want that?

B.  Weren’t quickly-financed homes part of the problem behind the 2008 housing crisis?

C.  Once you have bought the home, will you make sad discoveries? A Home is one of the major purchases of your entire life,  do you really want to risk spending years to regret it?

You might want  have the time to to research all the details behind the home and the loan.

D.  Worse than that scenario, do you want to get into debt deeper than you expected and end up losing the house, and wrecking your credit history?

Savor Purchasing Your Home and Your Home Mortgage!

Perhaps we are being too traditional, but at Palm State Mortgage Company, we believe part of the home mortgage loan process is designed to help you take your time in understanding each step of your financial commitment.

We relish talking with you in detail about what your home mortgage situation. What will your dream house will cost you in payments, interest fees, insurance, and upkeep. And, if you are a first time home mortgage shopper, with Palm State Mortgage Company, you will learn many financial responsibilities you never incurred as a renter.

We also value the one-on-one human elements that go far beyond what our computers do. We know computers can calculate and clear things quickly, but that is not always a good thing. Judgment calls, gesture, facial expression and tiny variances in your tone of voice are still parts of the human factors of communication. Do you really want to conduct one of the largest commitments of your financial life on the phone?

Don’t Buy That House–Until You Run Your Checklist–and Ours!

Given that you might be tempted to rush into your first home mortgage, we thought you should have a few of our favorite inside tips about your home buying adventures.  We have listed some of these previously, but Before you get a home mortgage, be aware of how your family will grow! these are our favorites because they are easy to forget or miss.

1.  The Long Haul:  As you view your dream homes, you must consider that life is full of surprises, so we advise you to think about resale value in case you ever want to move.

As you look at the floor plan, consider if you are going to be increasing your family, either with children or the care of a parent.

2.  How Much House You Can Afford–Really!  

We know you will account for the basics, like your payments and interest rates, but here are a couple of statistical numbers we want you to keep in mind:

A.  Front-end ratio:  Though it is not used as a hard and fast rule today, the old standard traditionally was that your house should take no more than 28 percent of your gross monthly income.  

B.  Back-end Ratio:  This refers to your (“gulp!”) monthly debt, as it stands now, before the house purchase. “Lenders prefer the back-end ratio to be 36 percent or less, but some borrowers get approved with back-end ratios of 45 percent or higher.”

3.  Hold Down Your Emotions!

You can not let your feelings run away with you, although falling in love with a home is a natural thing to do.  Be careful, for Cupid knows that Valentines are blind–and some falling into house love can be also be blinding.

Although we know this is impossible to curb enthusiasm for your dream home, we hope you will at least have a list of the following Big Three Home Categories:Don't fall in love with a blinding home mortgage.

A.  The Absolute Requirements:  Essential qualities you need in the home,

B.  The Fun To Have Details:  Often called amenities, these features of the home include little luxuries not essential to your lifestyle.

C.  The Draw-backs:  For each house you see, list the items you do not like, and decide if they are deal breakers. Then, stick to your resolve.

4.  Thou Shalt Honor the HOA

Before you fall in love with a house and a neighborhood, much less deal with contracts; be sure you know about the Home Owners Association.  What are the rules and regulations about landscaping, having a home business, keeping up the neighborhood, or renting out the house?

Simply, always ask for the Homeowners Association contract.  These are just a few of our favorite pointers for home shoppers seeking their dream house. Remember, at Palm State Mortgage Company, you won’t be rushed into your home loan, and you won’t complete your loan in less than 10 minutes. However, we will find you the best lender and rates for your financial situation.

Thank you for reading our blog this week.  
We will be back next week with a few more home mortgage tips!  
Until then, the owners and staff of Palm State Mortgage Company
take this opportunity to wish you a Happy Valentine Month!