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Affording A Home

Miramar, FL - July 22, 2009 - When you look at purchasing a Miami or  South Florida home, you and the mortgage lender will need to know if you can afford the financial commitment. Mortgage  Lenders have their own unique products and criteria when you borrow money from them. Whether you are a first time buyer, in the market for another home or perhaps even relocating for a new job, there are qualifications and requirements to be met. You need to be familiar with the Miami mortgage lenders' needs, as well as be aware of if the mortgage loan fits into your budget. The following information will help you sculpt an idea of affording a South Florida home loan in today's ever changing market and understanding the mountain of information that accompanies the process.

You need to be familiar with the Miami mortgage lender's requirements.  Every bank and lending institution has their own set of criteria for mortgage loans in Miami, but there are also some common variables shared by all Miami mortgage lenders. First, they will want your personal information. Who you are, where you work, how much money you earn, what is your credit history and how much can you reasonably apply to the South Florida home loan down payment are all questions that can be expected by every lending financial institution.

You will need to start organizing your personal financial information for these companies. Three to six months worth of check stubs may be required, so have them ready or request them from your human resource department. You will be required to provide your personal financial information such as proof of your down payment, several years of tax returns, perhaps as much as a year's banking history and a broad view of your credit. A mention of this last requirement is worthy.

Check Your Credit! There are three credit institutions that all Miami mortgage lenders use to view and understand your credit history. These three credit bureaus are Experian, Equifax, and TransUnion LLC.   Check all three so that you can address anything that may be considered a blemish or perhaps needs addressing.  They are provided for free at least once a year. So make sure you do this prior to applying for your South Florida home loan, as this will save you time and money.

CREDIT BUREAUS
Equifax
P.O. Box 740256
Atlanta, GA 30374
(800)-685-1111 
Experian
Web site: www.equifax.com
PO Box 2002
Allen, TX 75013
(888) 397-3742
TransUnion LLC
Web site: www.experian.com 
P.O. Box 2000
Chester, PA 19022
(800) 888-4213
Web site: www.transunion.com

Next, you must have a clear idea of your needs, aspirations, and above all if you can afford the South Florida home in question with your budget. With a realistic look at your personal financial budget before you take on a mortgage loan for the Miami home, you will start to carve out an understanding of the amount of the home loan you can afford. Another variable to consider when preparing your budget is to include the maturity of the home loan, such as a fifteen year loan versus a 30 year loan. Others that you should look at are the interest rate, the method of paying off the loan and does this fit your desire for the type of South Florida home loan that you are financially committing to?

Factoring in the cost of owning the home should not be over looked in your budget. Projecting the cost of taxes, PMI (private mortgage insurance), maintenance and general repairs are needed for your budget. Do not over look insurances for the property, as they are also costs that are associated with owning a home. These insurances may be a requirement by your Miami mortgage lender, legal authorities or just to have financial peace of mind.

You must be able to objectively consider your debt to income ratio with your budget. Your lending institution certainly will. This may seem complex at first but it really boils down to how much money you earn, including assets, minus your current and projected expenses.

Make sure your decisions are informed and accurate. You can play with the calculations and numbers but make sure you are honest with yourself about these figures. Even run through as many "what if" scenarios as possible. No one is has a crystal ball when trying to decide if they can afford a South Florida home loan. However considering this information will be helpful later, and you may find yourself grateful for a mortgage loan  that you can truly afford.

About TFCU:
Tropical Financial Credit Union has been offering quality products for customers for over 73 years. This fully accredited credit union is open for all residents of Dade, Broward and Palm Beach counties in South Florida, regardless of where they work. They continually expand and offer the best current interest rates on used car loans, mortgage rates and other deposits and loan products. As always, they continue to offer free individual and business checking in Florida throughout their branches and for all their members. For more information please visit www.tropicalfcu.org.