October 28

Answers to Common Mortgage Loan Questions For First-Time Home Buyers

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There are a lot of mortgage loan questions that home buyers have when shopping for a home. 

Below is a Q&A between me and a mortgage specialist on home mortgage options.

I interviewed Ken Endicott of NFM Lending in Tampa. We covered many of the top questions you may have on mortgage loans.

If you prefer, you may also watch this mortgage lending basics video on my YouTube channel and skip to each question using the timestamps provided in the description.

Watch on my YouTube channnel and, in the description, you can click your way thru the timeline / chapters of questions.

About NFM Lending in Tampa

Ken: My name is Ken Endicott. I work on the Jane Floyd team at NFM lending. NFM lending is a national correspondent lender.

We offer programs in all areas such as conventional, jumbo, VA, FHA, USDA as well as many government brokered non-QM options and such.

Jane is the branch manager and leader originator here at the Tampa branch and Jane has been serving the local area in lending since the early 90s.

I myself have also been working in mortgage loan originating since that time as well.

Randy: Is NFM a local lender or is it a nationwide lender and you guys operate locally here?

Ken: So, we are a nationwide lender. We are in currently in over 47 different states.

We did over $9 billion in volume last year.

Jane’s branch here in in Tampa, we handle the can handle the entire state of Florida.

And then we do have some internal loan officers that can work in a couple different states, but we can get a client connected with an NFM loan originator in 47 different states in the country.

Should You Shop Mortgage Lenders?

Randy: What makes lenders different from one another?

What differentiates you, NFM lending, from bankers...you know, the banks or other lenders, for example, when it comes to mortgages?

Ken: Sure. We we really, and I hate to use the term just, you know, service levels, but that's really, really vital.

We appreciate the requirements of each and every contractual date that's important, from application to commitment through closing. 

We know the importance of honoring those dates and commit to making those dates happen for each buyer and our realtor partners. 

We are unique in many respects that we do update calls, so we're very proactive in that.

When a client is on contract every Tuesday, we will be updating the realtor and the home buyer on the status of their loan.

We want the client to focus on their job and what they need to do and planning their move and the Realtors to be able to focus on finding the next listing and selling the next house and not worrying about what's going on in the mortgage process.

Randy: I think that seems to be one of those main issues and point of points of contention between the realtor and the buyer or seller when it comes to "what's happening, what's the status, let's give him a call. Hey, what happened to my application? Is there anything else that you guys need? Is it with underwriting? When am I gonna get the underwriting approval?"

That seems to be something that that really irritates buyers especially like they wanna know what's happening right now and then not getting an update and it can be really bothersome.

So it's great to hear that you guys are always on top of it and giving those weekly updates.

Ken: Yep. And in the up-front side of things in what we call the pre-approval process, Jane is always gone by the policy of getting the actual pre-approval.

We can do that through standard review and automated underwriting for the real basic ones and or we can take that file fully through underwriting.

And why that's important is at times, we had a client that contacted us late in the game that had learned late in the process that they didn't qualify.

Well come to find out, the bank never asked for their documentation up front and so we will always do that, collect that required documentation and make sure that client is in a good position to then go and purchase a property.

And so that is what we feel is the difference between what's pre-approval and prequalification. It's doing that due diligence in reviewing the documentation.

Do mortgage lenders offer incentives?

Randy: OK. So we're going to get into differences between prequals and pre-approvals in just a second.

When it comes to lending, do lenders, NFM specifically builders today are giving, especially today, incentives...that's, that's the main push. So marketing, they're pushed...they're marketing their incentives right now $50,000 here up to 60,000, I've seen it up to $90,000.

So how were they able to do that or do lenders specifically NFM, are there any sort of incentives that you can give borrowers to go with you versus going with the [builder]?

Ken: So the builder example you're giving is they can build those things into their sales price. So it's pretty much as simple as that. But, and in theory, so can sellers. So it's not necessarily just the builder option.

Sellers too can give incentives towards closing costs, rate buy downs, 2/1 buy downs of interest rate, things like that.

We in lending, each loan is unique.

There are times where we may be able to give a contribution to help with closing costs, but other times not every loan meets those requirements.

So on the lending side, it's a little more difficult to do that. But when there is that opportunity, we will certainly evaluate that and if there's the incentive to be able to give a closing cost contribution or something like that, we will certainly offer that to the client.

Randy: So it's on a client by client basis then at that point?

Ken: Correct, because they when it's coming from a lender it is always interest rate driven.

It's being able to give a credit back to the home buyer and not every program or loan gives that ability to do that.

So that's why it will always be case by case for each individual buyer, where a seller and builder again can build those incentives into their sales price and as long as it doesn't exceed the percentage allowed for their financing loan, they can you know offer that to the home buyer.

Why Are Mortgage Rates So High?

why are mortgage rates high

Randy: On the subject of interest rates and maybe we should opened up with this, but where do, where do you see interest rates going? What's happening? What's causing it not to get very detailed, but just kind of like high level type info here.

Ken: Yeah, certainly so. Obviously, we noticed what the Fed has had to do in those federal fund rate, interest rate hikes to try to curb inflation.  

Inflation at this point is still upwards in the 8.38 point 8.55 range, you know at this current time.

So those, those may continue overtime, you know, until they get that under control to help drive that inflation back down.

Currently, interest rates...long term mortgage rates have kind of followed suit. 

They are pressing into the upper sixes, mid 7% range currently, just depends on the program...if somebody is buying a rate down, things like that.

But interest rates are up.

Pretty much what Jane feels, some people in NFM and many of the market experts out there and economists, that interest rates it may happen sooner...

If we all had a crystal ball, you know we would invest that way but nobody has that crystal ball to know for sure...but do feel that interest rates over the next 12 to 18 months or so should be begin that decline and get back into that low range or lower range, maybe back into the low fives, maybe even into the 4% range by that time.

And at at that point in time those that are buying at this these current rates will be able to obviously take advantage, of refinancing and so at that time.

Does The FED Control Mortgage Interest Rates?

Does-FED-Control-Mortgage-Rates

Randy: And I think there's a misconception too. People think that the Fed, that the rates that they hike has a direct, has a direct response to interest rates when it comes to lending. That's a misconception, right?

Ken: It is a misconception. The rates overtime will follow that potential trend. However, if an interest rate today is will just pick a number is 7% and the Fed increases the federal funds rate .75 tomorrow, long term mortgage rates don't immediately go to 7.75%.

There is there is some correlation where it will follow that trend, but it just doesn't just automatically happen when they raise it, rates go up that much.

Randy: If the Fed they did, they dictate short term interest rates versus long term interest rates.

Ken: That is correct.

What Are The Different Mortgage Loan Options?

Randy: What are the different types of loans that you provide to borrowers?

Ken: Yes, so pretty much we have a really wide gamut of programs, and we discuss these various options with each client to try to help determine the options.

And you know let and then ultimately which will be the best route for them to go, but the conventional loans which is your Fannie Mae, Freddie Mac - you know, loans, conventional conforming. Current loan limit for that is [conventional conforming] $647,200; although we do have the capacity anticipating an increase between $700,000 to $715,000 for that loan limit.

Randy: Sorry. Loan limit for which program again?

Ken: For the Fannie, Freddie conventional. Yeah.

We can do that up to $700,000 currently they do expect that. Loan limit to go up as of January 1st permanently.

Now we also offer the FHA home loan which many perceive as a first-time home buyer program, but it's not required to be a first-time home buyer.

FHA is a great product, allows home buyers to purchase for this little is 3.5% down and gives a little more credit score flexibility, as far as getting homebuyers approved with lower credit scores.

We offer the VA home loan for veterans. The vet VA loan is incredible. It allows a veteran to purchase with zero percent down payment.

Those can vary up into what we call the high balance or VA jumbo.

NFM for example can go as high as $1.5 million with zero percent down for a qualified veteran.

So and we will assist the veteran and obtaining their certificate of eligibility through the VA.

So that's a great product and then we have just another a large gamut of what we call Jumbo loans, just numerous options and that. Those are loans that are over at-conforming loan limit. There's just a wide array of options for that.

We can go up anywhere between $3 to $5 million in loan amount on our jumbo products.

And then lastly there are various down payment assistance programs as well as non-QM which are your unique programs like bank statement programs, investor cashflow solutions, things like that.

Randy: So FHA is going to be 3.5% down, but on the conventional side, is there a minimum down payment that they need to come up with?

Ken: For the first time homebuyer, that's anyone that's not owned a home in three years, they could potentially purchase with as little as 3% down.

All others, if they've owned a home in the last three years, it's 5%. 

And then again FHA is 3.5%.

And each of those programs do have potential or down payment assistance programs associated with conventional as well as FHA.

What Are The Down Payment Assistance Programs Requirements?

Down-Payment-Assistance-Requirements

Randy: On the down payment assistance programs (DPA), are there specific requirements that they need to meet in order to qualify for DPA's?

Ken: In most cases, a minimum of the programs we offer, it's going to be a minimum of a 640 credit score, typically.

Some programs may have income limits, others may not.

But generally, it will average around 5% or up to $25,000, whichever is less in assistance towards the down payment and or closing costs.

And each of those programs do give options where the sellers can also assist with closing costs, thus, to give the buyer that potential of getting in for very little money out of pocket.

Randy: Very good. And then on the on the down payment assistance does that money have to be paid back overtime?

Ken: In most cases now they do.

But it's usually a 0% second mortgage that just sits there until the client either moves out of the home, meaning not making it their primary any longer, refinances the home or sells the home at that time that down payment assistance becomes payable.

But there's no monthly payment or interest, typically, that occurs until that happens.

Randy: Seems like a good deal though, I mean. Sell your home. You don't have to worry about payments until you sell your home and it's just taken from the proceeds of the house, right?

Ken: Correct. We review every option with the client, but if that is the option to get him into homeownership, then definitely it is a good a great option for each buyer.

What Is The Mortgage Loan Process Like?

Mortgage Loan Process

Randy: So Ken walk us through the process, walk us through the loan process, how does that work from application to closing.

Give us an idea for first time home buyers on what to expect and you know just kind of give us a walk through.

Ken: Yeah. So, from start to finish, when we first speak with the client, we will first want to learn what's important to them and help find the way to meet those plans and goals for each client and what programs etc. will be important.

But we will take them through the pre-approval process, running credit, reviewing their financial documents and consulting them on the various options and then issuing the pre-approval letter.

Once, you as the realtor, find them the home in their own contract, then we were review that contract, review their rate options with them and there's typically always rate options, meaning various rates to choose from and then we will lock their loan, disclose, and then once those disclosures are completed, we will run them through processing, underwriting, give them the weekly updates along the way, and ultimately having them ready to go sitting there at closing.

So that they can close and ultimately get the key to their new home.

What Is The Difference Between a Pre-qualification and a Pre-Approval?

Loan-Prequal-or-Preapproval-Letter

Randy: So there is a difference between a pre-approval letter and a pre-qualification letter. Is that correct?

Ken: That is correct

Randy: 'cause I've seen that being used interchangeably and they're not the same thing.

Ken: Correct. And some lenders will use the terminology preapproval when it's still typically a pre-qualification.

Our form will tell you the difference. It will say, no, we haven't reviewed the income documents, asset documents, that's a pre-qualification.

If it says yes, we've reviewed these documents, that's a pre-approval.

And those are some of the...when we hear from agents and buyers in the process of contract and they’re a couple weeks in and the loan is falling apart, which we hate to ever see that happen to any buyer, but when that's happening, we know that it was typically a pre-qualification and that the bank, the lender, the broker did not really do the full due diligence to review all the financial documents up front to make sure they're not going to run into, you know, an issue.

Now to anybody, issues can arise, you know, job loss, you know, changes in payment, cut back on hours, whatever it might be that can affect them.

But if they just don't do that due diligence upfront, it can be very problematic once they, you know, get into the contract timeline.

Randy: So specifically a pre-approval letter is when you have submitted all the documents. That prequalification letter is generally speaking, it's just unverifiable data.

Ken: So typically a good example over the phone or somebody did an online application and told you what they make, they put that in a box and you've pulled credit and they have very good credit. And you take the numbers as they read and you say this looks good and we issue the letter…or a lender or bank issues the letter.

The pre-approval means that we've collected those financial documents, pay stubs, etc to see oh, "Mr. Homebuyer or Mrs. Homebuyer," we see that you're new on this job, but your full pay is now commission. Before you were salary. You've only done this for one month.

We must have a longer history of commission-only earnings to be able to qualify you. So all of a sudden you went from thinking you're good to go, to...there's a problem in your financing.

So that's why again you do that well in advance of going under contract.

How Long Are Pre-Approval Letters Good For?

Randy: And the [pre-approval] letters are usually good for how many days? They range...

Ken: Yeah. Typically, in our case we truly only one issue a pre-approval and so in that case it's the credit report for most loan types are good for 120 days. So, it's a four-month pre approval.

Add within that window, at some point we will have to update things like pay stubs, bank statements, as those expire every 30 days.

But the credit is good for four months in most loans that we do.

What Documents Are Needed During The Mortgage Application?

Documents-Needed-For-Mortgage-Loan-App

Randy: Part of the application process for the pre-approval, what are the different documents that they do have to submit to you? Give one scenario, one case, where if they're a W2 employee or if they're on a 1099.

Ken: So a W2 employee obviously is the simplest process for the homeowner. A couple recent pay stubs, maybe a W2. And for at least 2021, possibly 2020.

Because we do focus on a 2-year history.

Randy: For a W2 employee?

Ken: What's that?

Randy: For a W2 employee?

Ken: For a W2 employee. For everybody, it's always a 2 year window of residency and employment.

And so we will look at that.

For a 1099, which typically is going to be classified as self-employed when they file their taxes or a true self-employed individual, we're also looking at two years, but that will elevate to needing tax returns.

If they also are incorporated, we will need the business tax returns in most cases. And we will analyze those over a 2-year period of time to determine income.

There are cases where an established business, we may be able to only have to use one year, but we usually will collect two years upfront until we know how many, you know, years we ultimately will need.

Randy: So how do you determine once everything is submitted, how do you determine how much to grant them the loan for? How much can they afford?

Ken: Yeah. So that is what is referred to as a income debt ratio of qualifying ratio.

So, we will take their housing payment plus any credit related debt, maybe a car loan, student loans, credit card payment, whatever it may be, it might be child support or alimony off of the credit report might come into play.

So, you will add those all up together and divide by their gross earnings.

For a simple W2 employee that might be their salary.

They're $100,000 a year, $150,000 a year.

For a self-employed in person that would be based on our calculations to where their pay is calculated, and that number has to be within a certain percentage.

Generally, on most loans that's going to be at about 45% to 50% of that income.

Randy: They call that the DTI...debt to income ratio.

Ken: That is correct. For the larger loans, jumbo loans, that typically will fall under 43%. But for your conforming Fannie, Freddie, FHA, VA loans, you're really think 45% to 50% for some of the VA FHA loans with certain strengths you might be able to go about 50%.

Randy: And then at that point do you guys, once the credit is pulled and you have their income information handy, at what point do you determine saying “alright, their best option is to go for conventional or FHA?”

At what point do you determine and then…What sort of options do you give the borrowers?

Ken: Yes. So we will certainly will review each of the options with them. And then point out the pluses, the pros and cons I should say of each one.

And then ultimately allow the client to make their choice from there.

So, a veteran might be eligible for the VA home loan.

But they may not be exempt from the funding fee, and they still want to put 20% down.

In that case, the conventional loan might be a better option for them.

Where if that same if a different veteran doesn't have any money to put down, even though they might have excellent credit, for example, they may not be eligible for a conventional loan, so the VA loan may be their best option.

So we'll just review each option available to the client, present it to them and then they will ultimately make the decision which they want to go with.

Randy: And then what about the down payment?

So on a conventional and so on, an FHA minimum is 3.5% down. 

On a conventional, it's as little as 3%. But does anybody and everybody qualify for a 3% down payment?

Ken: No, the 3% is specifically for a first-time home buyer. And that is in somebody that has not owned a home in the last three years.

Randy: And if it's somebody who sold a home or had a home within the last three years…What's the option at that point?

Ken: Yeah, for them on conventional side, they would have to put 5% down

Randy: 5%?

Ken: Yep. Now if it is a couple in which one party has owned a home in the last three years but the other has not, they still as a couple, are considered first time home buyers plus one of the parties is a true first-time home buyer.

For the low-down payment for FHA, the 3.5%, you do not have to necessarily be a first-time home buyer to have that option on FHA.

How long does it take to close a mortgage?

Randy: Buyers want to close fast. Sellers want to sell their home fast. Everybody wants to move on. What's the timeline look like from the time that a borrower finds a home, goes under contract to the time that they close and receive keys?

Ken: Certainly. Normally what we are seeing most contracts at today, have vary around 28 to 30 days. That's kind of the norm on the contracts.

We certainly see some shorter and we can close in less time.

We see some longer in which the buyer and seller agreed that they'd like a little more time in preparation for moving or the seller to find their find their own other home.

But the norm typically is about 28 to 30 days. That is the norm that we see.

But again we've closed them in 14 days and you know we've had contracts at 60-75 days.

So each one unique based on the buyer and sellers request and needs. But again we certainly have the ability to close very quickly, if that's what both, you know, want to and agree to.

Randy: Who approves the loan? So you, so your position is, as a lender, do you have the authority to say, so are you the one reviewing the applications, approving them and funding them? what's that like?

Ken: Yeah. So with us at NFM lending, yes, we are the lender. So we both originate as Jane Floyd in her team, so Jane as the originator for her team and then we process it. And then we underwrite it to fully approve and clear the loan to close and then we fund the loan.

That is the case in the majority of our loans all like the standard loans that conforming FHA, VA, etc. Jumbo loans are handled that way.

Randy: What do you mean by the loan originates with you?

Ken: That's the whole pre approved process. we are all of us are on the loan officer side, are licensed mortgage loan originators.

So that's what I mean by the term originate.

We originate the loan into processing, underwriting and closing.

Randy: Does that matter? Like do other other lenders, does it matter that they're not originators? You know, they're not licensed to do, I mean not.

Ken: Well and anyone factor when determining sure anybody doing loans has to be a licensed loan originator, I believe there are, even though even in banking, their loan officers or loan originators are required to have an NMLS license.

And I believe go through the background part of it.

They just in most cases are not required to go through the testing side of it as on the lending and broker side, but anybody originating a loan especially as a lender like NFM lending, or a broker out there, does have to be a licensed loan originator.

Randy: Is there something that buyers should be aware of? Any like points of caution?

Ken: Well, definitely any type of communication they get, they should that they're talking to somebody acting as the loan originator or loan officer, whatever terminology they may use is looking for that NMLS number.

If anything they get does not have that NMLS number, then they are probably not in a position where they should be talking to about loans and consulting and interest rates and things like that.

What The Difference Between an APR and Mortgage Interest Rate?

Randy: Alright, so let's transition a little bit over to interest rates. I was on a builder website a couple of days ago and I noticed that they've got an interest rate and then they've got an APR.

Is there a difference?

Ken: Uh, yes. Your interest rate is your note rate that you pay. Let's just go with the simplistic approach, 30 year fixed, that's your note rate that you pay for the life of your loan over 30 years.

The APR takes into account certain fees or closing costs that are part of that loan.

That can be things like any lender fee, the title closing fee, points, mortgage insurance, all those kind of things are considered APR fees.

And thus those get factored into a formula and you're always going to see that the APR is going to be slightly higher than the note rate, but then because it takes into account those closing costs.

If you have a loan that literally had no closing costs whatsoever, no mortgage insurance, nothing, your APR would be equal to your interest rate.

What Is Mortgage Insurance?

Randy: OK and then you mentioned a couple of key terms there. You've mentioned mortgage insurance. You mentioned points. Give us a definition of what those mean.

Ken: Yes. So mortgage insurance, we'll stick more focused on the conventional conforming loans...mortgage insurance is a Insurance that a buyer typically, there are other ways of handling mortgage insurance, but most cases it is a buyer paid expense on a monthly basis when they put less than 20% down.

And that it is a factor broken down monthly of their loan amount determined by the amount they put down and their credit score and in some in the type of property that they purchased.

Also, the number of buyers on the loan.

So all those can have a factor in determining that mortgage rate, mortgage insurance rate.

So someone that puts 15% down with, assuming the same credit score, is going to have a lower mortgage insurance payment than somebody only putting 5% down…For the same homebuyer…and we'll show buyers those differences like your mortgage insurance may drop by $30 if you go from 5% to 10% down.

But it's an insurance that allows lenders the ability to lend with less than 20% or 25% down.

Otherwise, no bank or lender would lend without those mortgage insurance companies.

Randy: Does mortgage insurance go away overtime or is it stuck?

Ken: Yep, on conventional loans it does it. Basically at some point when that value reaches that 20% to 22% range in each case it's case by case, but in general, you can pursue getting rid of the mortgage insurance with your lender.

They look at things like good pay history and may require in most cases a value and appraisal to determine to make sure that equity spread is there.

But yes, it does go away.

In certain cases, on FHA loans with minimum down payment their monthly mortgage insurance will stay there for the life of the loan.

What Are Lender Points / Fees?

Randy: OK, now what are points?

Ken: Points are what are referred to as up-front closing costs, additional cost, to buy down your interest rate. So, we will just use an example.

Let's say 7.5% is a zero points rate, so there's no extra point or closing calls, extra closing costs, other than your standard you know, lender fees, title fees, government stamps, etc. - let's say that's the zero-points interest rate.

You may for one point or if the loan amount’s $400,000, for $4000 in upfront cost, you might be able to buy your interest rate down to say 7%.

So, it's points are used to purchase or lower your interest rate.

Each time, that too is a case-by-case scenario.

We want to weigh that out with the client to see if that upfront cost based on the monthly savings over the time they may have this loan or this home, makes sense to spend that money to get them to buy it down to the lower interest rate.

Randy: So, are any of the fees negotiable?

Ken: I would say in theory, on the purely the lender side, anything in theory is negotiable.

But at, you know, but at some point, lenders may or may not, you know, be willing to give credit or something you know, to waive a fee or to cover a fee.

Things like government stamps and tangible tax, obviously those are not.

You know, title charges certainly can always talk to the title company if the client chooses.

Same with surveys etc.

But in most cases I would say most these truly are not negotiable, but it never hurts to ask.

What Are The Fees That Buyers Pay On A Loan?

Fees That Buyers Pay On A Loan

Randy: So one of the questions that I wanted to ask you earlier, but you were kind of hinting on them.

What are the fees that borrowers can expect to pay at closing, on the borrower side?

Ken: Obviously that's going to vary, loan to loan. But there are typically going to be, wherever you go, some type of lender fees. Whether it's application processing, underwriting, tax service, whatever they may be, appraisal, credit report, those type of things are going to be customary lender related costs.

From there, you're going to have your title charges, closing fees, potentially lenders owner title policy, endorsements to the title policy and then your government stamps like recording fees, intangible tax, mortgage stamps, potentially the deed transfer taxes depending on the area of our state that you’re in.

And then also if it's a single family home, surveys. If there's HOA fees, they'll be prorated. HOA costs, things like that.

Those are your typical closing costs, and then you'll have your prepaid escrows which are your taxes and insurance, your first year's insurance policy, and then a prorated amount of the insurance and taxes for the upcoming year.

Randy: So the prorations on insurance is it, is there a certain number of months that you take in advance or do you take the full amount for the year?

I've seen closing statements where they've taken 14 months. You know they'll take three months, and they'll take another ten or example that sort of thing.

So. Is there a standard that's the that's you know, that's within the lending community?

Ken: The 14 to 15 is your normal on insurance, 12 for the for that first year's policy and then two to three months to establish the next year's policy for escrow account, excuse me, to establish the escrow account.

On taxes, the net effect, usually after the preparation with the seller usually nets out to about three to four months from the buyer’s side of it.

Randy: Is there a reason that the prorations are taking that far in advance? Like for example, you've taken the 12 months and then you take an additional two or three, for example.

Ken: Yeah, for the insurance is because the day of closing, you must pay the initial 12 month policy. So they collect the, let's just say that's $2500.

They will collect that $2500 at time of closing to pay for that first year's policy and then the additional couple months are put into escrow to establish the escrow account moving forward, so there's ample funds in the account to have for the next year when your insurance and taxes come due.

Randy: We're coming towards the, we're reaching the finish line here Ken, is there anything as final words that you want to kind of tell borrowers to be wary of anything, any last words that you want to let them know?

Ken: I would just probably say that, you know, real estate overtime is still one of the number one investment along with establishing your home for yourself and your family, so you know I would say don't allow, you know, things like fear and interest rates derail you know that goal, you know of still pursuing homeownership.

The cost of renting when you think of overtime at $2500 a month, per year, that could be $30,000 for one year, $60,000 for two years of paying someone else’s mortgage where you could be establishing your home equity, potentially be taking advantage of tax write offs and things like that.

So don't let today's market and interest rates shy somebody away from home ownership.

Beyond that always, always pursue getting your full pre-approval in place before.

If you don't have the ability to pay cash, get that preapproval in place before you know you begin that home buying process just so you can definitely be aware where you fit and make sure it meets your home buying plans and goals.

Randy: And how can borrowers get ahold of you?

Ken: Well, they can contact of course the Jane Floyd team. Our office number is 813-961-3900 and they would ask for anybody you know on the Jane Floyd team. 

They can always contact Jane direct at 813-758-8334 and then myself, Ken Endicott, is again, one of her team members, my Direct Line number is 813-676-1986

I'll give you one more thing that I got going on, the focus on the mortgage, but that is also very, very important that along with that that each home buyer should not try to do this on their own over the Internet.

They should also get with and hire a professional real estate agent like yourself, Randy Ahmad with Florida Executive Realty to assist them through the process, because there's nothing more important than having that professional on your side helping you find the home and negotiating the sales contract.

Randy: Well said. I couldn't have said it better.

Alright man Ken, good stuff, my brother. Good stuff, man. And thank you so much.

Ken: Thank you Randy for the opportunity.

Final Thoughts

Hope that this Q&A shed some light into home mortgage basics and provided much needed information on the mortgage lending process.

If you have any questions about the buying or selling of real estate in Tampa Bay, please call, text or email me at any time.s


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