Frequently Asked Questions

Read Answers to Common Questions
When should I refinance?

It’s generally a good time to refinance when mortgage rates are 2% lower than the current rate on your loan. It may be a viable option even if the interest rate difference is only 1% or less. Any reduction can trim your monthly mortgage payments. Example: Your payment, excluding taxes and insurance, would be about $770 on a $100,000 loan at 8.5%; if the rate were lowered to 7.5%, your payment would then be $700, now you’re saving $70 per month. Your savings depends on your income, budget, loan amount, and interest rate changes. Your trusted lender can help you calculate your options.

What are points?
 A point is a percentage of the loan amount, or 1-point = 1% of the loan, so one point on a $100,000 loan is $1,000. Points are costs that need to be paid to a lender to get mortgage financing under specified terms. Discount points are fees used to lower the interest rate on a mortgage loan by paying some of this interest up-front. Lenders may refer to costs in terms of basic points in hundredths of a percent, 100 basis points = 1 point, or 1% of the loan amount.
Should I pay points to lower my interest rate?

Yes, if you plan to stay in the property for a least a few years. Paying discount points to lower the loan’s interest rate is a good way to lower your required monthly loan payment, and possibly increase the loan amount that you can afford to borrow. However, if you plan to stay in the property for only a year or two, your monthly savings may not be enough to recoup the cost of the discount points that you paid up-front.

What is an APR?

The annual percentage rate (APR) is an interest rate reflecting the cost of a mortgage as a yearly rate. This rate is likely to be higher than the stated note rate or advertised rate on the mortgage, because it takes into account points and other credit costs. The APR allows homebuyers to compare different types of mortgages based on the annual cost for each loan. The APR is designed to measure the “true cost of a loan.” It creates a level playing field for lenders. It prevents lenders from advertising a low rate and hiding fees.

The APR does not affect your monthly payments. Your monthly payments are strictly a function of the interest rate and the length of the loan.

Because APR calculations are effected by the various different fees charged by lenders, a loan with a lower APR is not necessarily a better rate. The best way to compare loans is to ask lenders to provide you with a good-faith estimate of their costs on the same type of program (e.g. 30-year fixed) at the same interest rate. You can then delete the fees that are independent of the loan such as homeowners insurance, title fees, escrow fees, attorney fees, etc. Now add up all the loan fees. The lender that has lower loan fees has a cheaper loan than the lender with higher loan fees.

The following fees are generally included in the APR:

  • Points – both discount points and origination points
  • Pre-paid interest. The interest paid from the date the loan closes to the end of the month.
  • Loan-processing fee
  • Underwriting fee
  • Document-preparation fee
  • Private mortgage-insurance
  • Escrow fee

The following fees are normally not included in the APR:

  • Title or abstract fee
  • Borrower Attorney fee
  • Home-inspection fees
  • Recording fee
  • Transfer taxes
  • Credit report
  • Appraisal fee

What does it mean to lock the interest rate?

Mortgage rates can change from the day you apply for a loan to the day you close the transaction. If interest rates rise sharply during the application process it can increase the borrower’s mortgage payment unexpectedly. Therefore, a lender can allow the borrower to “lock-in” the loan’s interest rate guaranteeing that rate for a specified time period, often 30-60 days, sometimes for a fee.

What documents do I need to prepare for my loan application?

Below is a list of documents that are required when you apply for a mortgage. However, every situation is unique and you may be required to provide additional documentation. So, if you are asked for more information, be cooperative and provide the information requested as soon as possible. It will help speed up the application process.

Your Property

  • Copy of signed sales contract including all riders
  • Verification of the deposit you placed on the home
  • Names, addresses and telephone numbers of all realtors, builders, insurance agents and attorneys involved
  • Copy of Listing Sheet and legal description if available (if the property is a condominium please provide condominium declaration, by-laws and most recent budget)

Your Income

  • Copies of your pay-stubs for the most recent 30-day period and year-to-date
  • Copies of your W-2 forms for the past two years
  • Names and addresses of all employers for the last two years
  • Letter explaining any gaps in employment in the past 2 years
  • Work visa or green card (copy front & back)

If self-employed or receive commission or bonusinterest/dividends, or rental income:

  • Provide full tax returns for the last two years PLUS year-to-date Profit and Loss statement (please provide complete tax return including attached schedules and statements. If you have filed an extension, please supply a copy of the extension.)
  • K-1’s for all partnerships and S-Corporations for the last two years (please double-check your return. Most K-1’s are not attached to the 1040.)
  • Completed and signed Federal Partnership (1065) and/or Corporate Income Tax Returns (1120) including all schedules, statements and addenda for the last two years. (Required only if your ownership position is 25% or greater.)

If you will use Alimony or Child Support to qualify:

  • Provide divorce decree/court order stating amount, as well as, proof of receipt of funds for last year

If you receive Social Security income, Disability or VA benefits:

  • Provide award letter from agency or organization

Source of Funds and Down Payment

  • Sale of your existing home – provide a copy of the signed sales contract on your current residence and statement or listing agreement if unsold (at closing, you must also provide a settlement/Closing Statement)
  • Savings, checking or money market funds – provide copies of bank statements for the last 3 months
  • Stocks and bonds – provide copies of your statement from your broker or copies of certificates
  • Gifts – If part of your cash to close, provide Gift Affidavit and proof of receipt of funds
  • Based on information appearing on your application and/or your credit report, you may be required to submit additional documentation

Debt or Obligations

  • Prepare a list of all names, addresses, account numbers, balances, and monthly payments for all current debts with copies of the last three monthly statements
  • Include all names, addresses, account numbers, balances, and monthly payments for mortgage holders and/or landlords for the last two years
  • If you are paying alimony or child support, include marital settlement/court order stating the terms of the obligation
  • Check to cover Application Fee(s)

How is my credit judged by lenders?

Credit scoring is a system creditors use to help determine whether to give you credit. Information about you and your credit experiences, such as your bill-paying history, the number and type of accounts you have, late payments, collection actions, outstanding debt, and the age of your accounts, is collected from your credit application and your credit report. Using a statistical program, creditors compare this information to the credit performance of consumers with similar profiles. A credit scoring system awards points for each factor that helps predict who is most likely to repay a debt. A total number of points — a credit score — helps predict how creditworthy you are, that is, how likely it is that you will repay a loan and make the payments when due.

The most widely use credit scores are FICO scores, which were developed by Fair Isaac Company, Inc. Your score will fall between 350 (high risk) and 850 (low risk).

Because your credit report is an important part of many credit scoring systems, it is very important to make sure it’s accurate before you submit a credit application. To get copies of your report, contact the three major credit reporting agencies:

Equifax: (800) 685-1111
Experian (formerly TRW): (888) EXPERIAN (397-3742)
Trans Union: (800) 916-8800
These agencies may charge you up to $9.00 for your credit report.

You are entitled to receive one free credit report every 12 months from each of the nationwide consumer credit reporting companies – Equifax, Experian and TransUnion. This free credit report may not contain your credit score and can be requested through the following website:

What can I do to improve my credit score?

Credit scoring models are complex and often vary among creditors and for different types of credit. If one factor changes, your score may change — but improvement generally depends on how that factor relates to other factors considered by the model. Only the creditor can explain what might improve your score under the particular model used to evaluate your credit application.

Nevertheless, scoring models generally evaluate the following types of information in your credit report:

  • Have you paid your bills on time? Payment history typically is a significant factor. It is likely that your score will be affected negatively if you have paid bills late, had an account referred to collections, or declared bankruptcy, if that history is reflected on your credit report.
  • What is your outstanding debt? Many scoring models evaluate the amount of debt you have compared to your credit limits. If the amount you owe is close to your credit limit, that is likely to have a negative effect on your score.
  • How long is your credit history? Generally, models consider the length of your credit track record. An insufficient credit history may have an effect on your score, but that can be offset by other factors, such as timely payments and low balances.
  • Have you applied for new credit recently? Many scoring models consider whether you have applied for credit recently by looking at “inquiries” on your credit report when you apply for credit. If you have applied for too many new accounts recently, that may negatively affect your score. However, not all inquiries are counted. Inquiries by creditors who are monitoring your account or looking at credit reports to make “prescreened” credit offers are not counted.
  • How many and what types of credit accounts do you have? Although it is generally good to have established credit accounts, too many credit card accounts may have a negative effect on your score. In addition, many models consider the type of credit accounts you have. For example, under some scoring models, loans from finance companies may negatively affect your credit score.

Scoring models may be based on more than just information in your credit report. For example, the model may consider information from your credit application as well: your job or occupation, length of employment, or whether you own a home.

To improve your credit score under most models, concentrate on paying your bills on time, paying down outstanding balances, and not taking on new debt. It’s likely to take some time to improve your score significantly.

What is an appraisal?

An Appraisal is an estimate of a property’s fair market value. It’s a document generally required (depending on the loan program) by a lender before loan approval to ensure that the mortgage loan amount is not more than the value of the property. The Appraisal is performed by an “Appraiser” typically a state-licensed professional who is trained to render expert opinions concerning property values, its location, amenities, and physical conditions.

What is PMI (Private Mortgage Insurance)?

On a conventional mortgage, when your down payment is less than 20% of the purchase price of the home mortgage lenders usually require you get Private Mortgage Insurance (PMI) to protect them in case you default on your mortgage. Sometimes you may need to pay up to 1-year’s worth of PMI premiums at closing which can cost several hundred dollars. The best way to avoid this extra expense is to make a 20% down payment, or ask about other loan program options.

What is 80-10-10 financing?

Surprising as it may seem, some folks with hefty incomes find that it’s mighty tough for them to save enough money to make a 20% cash down payment on their dream homes. Using conventional financing, such buyers must purchase Private Mortgage Insurance (PMI) which increases the cost of home ownership and, ironically, makes it even more difficult to qualify for the mortgage. However, if you’re a dues-paying member of the cash-challenged class, don’t despair. Given that your income is sufficiently high, it’s eminently possible to avoid getting stuck with PMI. That is why 80-10-10 financing was invented. It is called 80-10-10 because a savings and loan association, bank, or other institutional lender provides a traditional 80% first mortgage, you get a 10% second mortgage, and make a cash down payment equal to 10% of the home’s purchase price. By using this method, you are no longer obligated to take out PMI on your property.

The same principle applies if you can only afford to make a 5% down, 80-15-5 financing is also available. However, because a smaller cash down payment increases the lender’s risk of default, do not be surprised when you are asked to pay higher loan fees and a higher mortgage interest rate for 80-15-5 than you pay for 80-10-10.

What happens at closing ?

The property is officially transferred from the seller to you at “Closing” or “Funding”.

At closing, the ownership of the property is officially transferred from the seller to you. This may involve you, the seller, real estate agents, your attorney, the lender’s attorney, title or escrow firm representatives, clerks, secretaries, and other staff. You can have an attorney represent you if you can’t attend the closing meeting, i.e., if you’re out-of-state. Closing can take anywhere from 1-hour to several depending on contingency clauses in the purchase offer, or any escrow accounts needing to be set up.

Most paperwork in closing or settlement is done by attorneys and real estate professionals. You may or may not be involved in some of the closing activities; it depends on who you are working with.

Prior to closing you should have a final inspection, or “walk-through” to insure requested repairs were performed, and items agreed to remain with the house are there such as drapes, lighting fixtures, etc.

In most states the settlement is completed by a title or escrow firm in which you forward all materials and information plus the appropriate cashier’s checks so the firm can make the necessary disbursement. Your representative will deliver the check to the seller, and then give the keys to you.

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Gloria Marina Cardenas
Gloria Marina Cardenas
04:02 16 Jul 21
I can highly recommend Florida Mortgage Solutions. Roberto Meza and his Team are incredibly professional, honest and dedicated.My last two closings have been excellent, due to your hard work. The satisfaction of my Clients is the most important for me.Thank you Roberto you are the best !
Connie Amado
Connie Amado
12:46 17 May 21
Thank you Tony and team for your cooperation to close my deal. You are very good!
Rumba Records
Rumba Records
05:23 19 Mar 21
We are very excited! Thank you Florida Mortgage Solution for all of your help in securing our loan for our new home. Your team is really organized, thorough and professional. We put our trust in Mike Lewis team and they made our dream come true.Thank you so very much Anna, Roberto and Mike!! you guys are the best!!R. Saez Verdecia and family
Gabriel Guzman
Gabriel Guzman
12:48 25 Dec 20
My refinance process went without a hitch, in a very short time. Tony and the team did a fantastic job. Thank you!
Sheree Bergeron Lopez
Sheree Bergeron Lopez
11:51 24 Oct 20
I can't thank you all enough for your hard work. The process was super easy and I loved the timeline and texts to keep us on track. The best team around to help with all your mortgage needs!!!
Olga Pazos
Olga Pazos
10:59 11 Mar 20
They made buying a home for the first time seem so easy and flawless. They were on top of every detail from day one! Jenny and Jenniffer were AMAZING through the whole process!! I highly recommend Florida Mortgage Solutions to anyone in the process of buying a home!!
ricardo antoine
ricardo antoine
17:20 04 Mar 20
Thank you so much! We are more than excited and ready to embark upon this new journey. We couldn’t have done it without all of you guys and the major roles you each played! We thank you all from the bottom of our hearts this process easy, guiding, as d worth the while! Ricardo & Regina Antoine
Sheila Matthew
Sheila Matthew
13:02 07 Jan 20
Valeria and her team did an awesome job making sure I closed on my new home. I would recommend them any day
Giselle Metiviet
Giselle Metiviet
19:45 18 Dec 19
Valeria went above and beyond with helping me with my home buying process. It was all worth it at the end. My calls and texts never went unanswered, even when it was well after working hours! I also want to mention Colleen, as she was very patient with me when there were times I wanted to pull my hair out! Valeria is very knowledgeable and will not stop until we get a full approval and a clear to close. She's amazing at what she does and definitely needs to be awarded for her hard work. Thank you so much to everyone that had their hands in my file and contributed to me owning my first house! Valeria and her team deserve the world!
Wyetta Ford
Wyetta Ford
12:05 23 Nov 19
Great experience. The team at FMS was helpful, timely and the process went smoothly. Highly recommend.
Lee Jenkins
Lee Jenkins
16:57 16 Nov 19
Mike, You and your very professional team have been our Preferred Mortgage Brokers for over 20 years. We love working with you to help all our clients get the best programs that fit their individual situations. We have had so many extremely wonderful experiences with you, especially when the families and individuals move into their new homes with those big smiles and happiness. We look forward to our continuing goal of making sure we both provide all our clients who we helped previously, now and in the future with absolutely outstanding service and expert advice. Thank You for being so dedicated to your profession of helping people. Warmest Regards as Always, Lee Jenkins
Carlo P
Carlo P
13:28 11 Oct 19
I want to thank Florida Mortgage Solutions group for all your help. The entire process was taken in a very professional and thorough way from start to finish. I want to thank the entire team starting with Mr. Gustavo Grasso who imparted his knowledge to ease the process of finding a home. I also want to acknowledge Mr. Erick Lynch and Ms. Anna Nashenko for their assistance on getting a loan. I am pleased to leave a review for you guys.
Dawnelle Owens
Dawnelle Owens
11:14 30 Aug 19
Working with Tony Mendez and team has been such an awesome experience. He was sure to keep me informed all of the upcoming steps in the process of purchasing our condo. Whenever I had questions he provided very thorough and clear answers. Jenniffer Alonzo, the junior processor, was very informative and always provided clear communication of what was needed and what was to come. As a first time home buyer, I must say that Tony and his team made the process flow effortlessly. From the beginning of the process to the loan closing, I would truly recommend him and Florida Mortgage Solutions to anyone looking to purchase a home!
Shema J
Shema J
17:25 21 Aug 19
I had the pleasure of working with Florida Mortgage Solutions Group to obtain a Loan to purchase a home. The team I worked with was very knowledgeable and dedicated to getting me the best rate. They were polite and very patient throughout the process. A special thanks to Valeria B. and Jennifer A., they were very attentive and explained everything to me in detail. Every call/email was answered the same business day often within minutes. Buying a home is often a daunting and stressful process, with Florida Mortgage Solutions Group and what felt like was my own personal team, the process was a breeze and I could not be happier.
Jorge Ferraguti
Jorge Ferraguti
22:57 23 Jul 19
Great professional team! The staff is really helpful and knows your needs. Anna is a great processor, always in constant communication to get the process well done.
Aarona Jordan
Aarona Jordan
22:57 28 May 19
Thank you Mike and staff at Florida Home Mortgage! Your professionalism and sincere dedication to guide us through this process was felt every step! I'll tell every one, use an APP to order food, not get a mortgage- that deserves a TEAM. Thank you Mike!!
robin maza
robin maza
20:55 30 Apr 19
I closed my latest house purchase here. They were courteous, knowledgeable, and super easy to work with. I highly recommend!
Philipp Family
Philipp Family
13:59 30 Apr 19
Great team! Thanks to Anna Nashenko & Erick Lynch for their support funding and closing on my house. It was great working together. The constant communication and attention to detail helped us close right on time and with all parties on the same page every step of the way!
Hanh Dinh
Hanh Dinh
21:03 22 Mar 19
Great company & Staff. After trying to refinance our home and failed with different company and wasted our time , Mike and Lorna at Florida Mortgage Solutions Group came to the rescue and have helped us tremendously and got the transaction closed! Thanks Guys!!
Lazaro Dinh
Lazaro Dinh
21:03 22 Mar 19
Closed a Jumbo loan for us, did a great job, the entire team was very professional and I would definitely recommend.
Linda DiLorenzo
Linda DiLorenzo
17:31 25 Oct 18
I worked with Florida Mortgage Solutions to purchase my home. While it was a little rough in the beginning (no one persons fault) Mario Cervantes stepped up and owned the issues even when part of them were from my own doing. Once we got past the issues Mario, Mike and the rest of the Florida Mortgage Solutions team were just outstanding. My mortgage process was so smooth and easy and this new system they have to let you know where in the process you are via email is just awesome!Word of caution though - make sure you have all your “ducks in a row”, are upfront about everything and I promise you Florida Mortgage makes the entire process so easy that you are done before you know it and they will get you a mortgage. Mario was right there taking all my texts and phone calls no matter the day, time or reason even if it was just to tell me over and over and over and over that everything is going fine. Great company, great people and I would highly recommend them to anyone needing a mortgage. Be sure to work with Mario and Jennifer they won’t disappoint!
Fernando Mongalo
Fernando Mongalo
06:14 16 Dec 17
Great experience and super satisfied to all my needs towards our first home purchase
Leslie Moya
Leslie Moya
20:48 15 Nov 17
Tony Mendez has an Awesome Mortgage team. As a Buyer's Real Estate Agent, when my buyers are approved with Florida Mortgage Solutions, I know we have a Real-Time, Good-to-Go, Closing on our hands. Today my buyers closed on their new home, and Tony's team approved their loan in record breaking time! Thank You FL Mortgage Solutions! ☆ We couldn't have done it with out you ☆
leonel ramirez
leonel ramirez
16:10 23 May 17
my family and I are currently working on the details of my loan and they are very knowledgeable especially when it came to getting approved with a VA loan. Mike Lewis and his team of experts are the creams of the crop. first home for us and I wouldn't recommend anyone else to put you in the right place. thanks for all of your efforts and experience.
Calvin Ford
Calvin Ford
14:10 02 Mar 17
Tony Mendez and his team were outstanding!! As a first time buyer they were made our approval process smooth and stress free! I highly recommend!!
Ed Goldfarb
Ed Goldfarb
01:48 30 Nov 16
As a Realtor it is imperative anyone or firm my team and I refer our clients can make us look good. After two years working with Mike and Jenny, they have ALWAYS COME THROUGH. Even a $1.2 million buyer with low credit scores got a bank rate loan. Everyone that my team and I refer love them and so do we. BTW they also all my seller ingredients clients prospective buyers.
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