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Issue link: https://digital.miamilivingmagazine.com/i/11585
ML EXCLUSIVE! REAL ESTATE GUIDE Mortgage and Refinancing Institutions One mistake home buyers make is going directly to the bank, which specializes in collecting mortgages and funding loans, but a mortgage broker knows the business well and does your bargain shopping for you. Good brokers give their clients personalized attention. Plus, banks tend to give them better rates since they are experienced. The first thing you should ask your broker about is Federal Housing Authorization (FHA), which requires a 3 percent down payment as opposed to a typical 10 percent. FHA rates apply to individuals with high debt-to- income ratios and are either first time home buyers or those who wish to refinance. Just make sure you have a pay stub that states exactly what you make, otherwise, you will not be able to apply for an FHA loan. For you seniors out there (63+ years old), some mortgage companies can execute reverse mortgages. This program is designed for people who have an existing mortgage; the company pays off the mortgage and the senior can live out their life without paying the mortgage. Once they pass, the heirs can pay off the mortgage by either refinancing or selling the property to pay for the remainder of the mortgage. If there are no heirs, the property goes back to the government, and the government pays off the loan. Helpful Buying Tips Besides keeping steady employment and having decent credit… Know your budget: How much can you afford? Allocate a percentage of your income to your mortgage payments. Rule of thumb: monthly mortgage fees should not exceed 30 percent of your total income. Research: Search the Internet for properties and compare pricing and location. If you are purchasing a residence in a multi-family property, investigate the number of recent closed sales in the building or how many units are available for sale. Keep an eye out for foreclosures, reserves, and any negative law suits or pending litigation on the property you are looking at. Consult an attorney: Consulting a real estate attorney will not only avoid the buyer from being overcharged on title fees, but helps protect the seller as well. Real estate agents are only licensed to do so much under the law. This could cost you more money now, but it may save you thousands later. ML 90 MIAMI LIVING