Obtaining Condo Financing In Miami .The importance of getting pre- approved in order to obtain condo financing in Miami before you start a home buying process cannot be stressed enough. Looking at condos online without knowing what price range you can afford or be pre-qualified for is useless. There is nothing worse than falling in love with a dream property, and then not be able to afford it.
If you are looking to buy a Miami condo, ask your realtor what down payment you most likely will have to come up with. Most Miami condominiums located in Brickell, Downtown Miami, Aventura, Sunny Isles Beach, Miami Beach and other areas of high condo density are financeable. Industry standards show that Primary residence transactions require 20-25% of down payment, second or vacation home loans will require a 30% down payment. Ask your Realtor if the condo you may be interested is FHA approved, if so, then you can buy your primary residence for as little as 3.5% down.
If you are a foreign national and seeking to obtain condo financing in Miami ,then keep in mind that mortgages for Foreign Nationals are a bit different than for U.S. Citizens. Still its not difficult to qualify if you have the necessary documentation in hand. There are plenty of financial institutions that will offer you their services in obtaining condo financing in Miami and Miami Beach areas. Most of them will require 40%-50% down payment and some of the following documents: copy of your passport or visa, verification of income, bank statements.
1. Try to reduce your total revolving debt payments on credit cards, car or student loans before you start the mortgage application process. The goal is to reduce the overall debt-to – income ratio and improve your credit score.
2. Do not apply for any new credit cards after you decided to obtain financing. Postpone any large purchases until you close on your house. Lenders will check your credit report at the time you apply for a mortgage and again right before closing. Any last minute shopping will be flagged .
3. Before obtaining condo financing, carefully check your credit reports from major credit reporting agencies such as Equifax, Experian, and Transunion in order to clean all inaccurate and outdated items. Also keep in mind that your credit score needs to be anywhere from 680 and 720 or higher to qualify for a better mortgage rate.
4. To increase your chances of getting a loan, put more money down. What is the best way to do this? Start saving up in advance, and any family contributions would certainly help.
5. And finally, start preparing the paperwork in advance. Most financial institutions in Miami will ask you for the following:
· Employment: Last two years’ federal tax returns and/or W-2 statements, which financial institutions use for verification of your employment and earnings.
· Pay stubs: These will help financial institutions decide whether you will be able to handle your monthly mortgage payments.
· Employment History: While your pay stubs provide your financial earnings, your employment history gives the financial institution an idea of the nature of your employment. A more solid work history will improve your chances of getting a loan.
· Credit History: Credit report including current creditors and account information. A credit report, including a list of your current creditors and the corresponding account information is useful to a financial institution because it allows them to see how you have dealt with past loans. This list should include the details of all student loans, auto loans, credit cards, and child support payments.
· Expenses and bank statements.by