Understanding Mortgage Guidelines in Today's Florida Market

Mortgage and Lending with Bay to Bay Lending

Understanding Mortgage Guidelines in Today's Florida Market


With today’s stringent lending guidelines, it is critical for buyers and agents to understand what is required to successfully obtain mortgage financing. Below are some issues that can become frustrating given the current state of the Tampa market.


1. Bad credit scores are now classified between 640 and 660. The bank usually says “no” to these buyers automatically. This is really NOT a true statement. Most FHA loans and VA loans require at least a 640 FICO. Here at Bay to Bay Lending we offer a program for FHA loans with FICO score’s as low as 530 with as little as 10% down, and 100% VA mortgages with FICO score’s as low as 530 too. Additionally, there are programs we offer for Conventional mortgages, for a primary residence, requiring only 5% down and a FICO score of 620.


2. Not enough income. That is 100% correct. If sufficient income to support the mortgage payment cannot be documented, then the mortgage will not be approved. That is why it is crucial that ALL income documentation (pay stubs, W-2’s, tax returns, etc.) be received by the lender.


3. Paperwork glitches. Incomplete information and missing forms can slow down or stop the lending

process. Bay to Bay Lending provides you with a “checklist” so you can be sure you are completing all

necessary forms and submitting the required documents. By giving this to you ahead of time, you are able to plan better and relax more.


4. Homeowner Associated issues. HOA issues pose a problem with the mortgage approval process;

especially on Condominiums. Condos go through a more stringent approval to better examine your overall stability since it impacts each owner in the project. Things such as owner occupancy, pending litigations, and delinquency of HOA dues are taken into consideration.


5. Appraisals. If the home does not appraise, the bank will not lend. Simple as that. The LTV (loan to

value) is based on the lesser of the sales price or the appraised value. The seller and buyer can always

renegotiate the transactions based on the new value.


6. Name inconsistencies, contracts, & discrepancies in title work. This is where agents need to be very

careful when writing a sales contract. If they pull the USPS for the address, it will be 100% accurate. They need to use the buyer’s legal name (Robert, not Bobby or Jonathan, not Johnny, etc.). As a mortgage loan originator, I see addendums that frequently need to be changed because the legal names were not used. Then the title company also has to change their documents, thus slowing down the mortgage process altogether.


Having agents set proper expectations upfront will go a long way in making your mortgage close in a

smooth and timely manner. Our team of mortgage brokers at Bay to Bay Lending can show you the way; let us get you home! It is important to advise your mortgage needs under a knowledgeable lending professional. Laurie Toland is committed, qualified, and equipped to help you evaluate your options. Contact Laurie via direct at (813) 642-7361 or reach out to her via email at laurie@baytobaylending.com. Access Bay to Bay Lending’s mortgage loan calculator here to see if refinancing is right for you: http://www.baytobaylending.com/mortgageLoanCalc.html.


Whether you are seeking to purchase a new home or refinancing(http://www.baytobaylending.com/home.html) your current Tampa Mortgage (http://www.baytobaylending.com/rentvsBuyCalc.html), let us show you the way. Bay to Bay Lending is associated with the nation's unsurpassed pricing leaders. The Bay to Bay Lending team of Tampa Mortgage Brokers (http://www.baytobaylending.com/staff/) will make the mortgage process as simple as possible. We pride ourselves on offering a premier level of customer support and we look forward to getting you the best financing available.


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