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Maybe you are buying your first Orlando home, or perhaps you're relocating to Orlando from another state. Then again, you may be a long-time Orlando resident who is looking to either refinance your current Orlando mortgage or take out an Orlando home equity loan for home improvements. Regardless of your circumstances, it's important that you educate yourself on Orlando home loans before shopping for a home and/or mortgage. This post explains what you will need to know before seeking an Orlando home loan :

The median price of a home in Florida is $211,500. Recently, homes in Orlando have been appreciating at rates well above the national average. As a result, income levels in many parts of Florida are too low to purchase a median-priced home with a conventional loan. Although average interest rates in Florida are below the national average, Florida has one of the lowest levels of home affordability in the nation.

In the Orlando market, before a buyer submits an offer on a home, their real estate agent is required to present them with a completed Real Estate Transfer Disclosure Statement. This paper, completed by the seller of the property, requires the seller to name all of the property that will be included in the purchase (refrigerator, stove, alarm system, etc.) and rate certain aspects of the conditions of both the included property and of the house itself. This paper requires the seller to disclose any potential problems or hazards that may discourage the buyer from putting an offer in on the home.

Florida's Civil Code Provision of the Real Estate Act regulates the issuance of variable interest rates for the purchase of real estate. Therefore, borrowers who are issued large mortgage amounts are guaranteed a fixed rate mortgage. Florida law also prohibits the charging of interest more than one day prior to the recording of the mortgage even if the borrower received the loan prior to that time.

In July of 2002, Florida law enacted a set of anti-predatory lending laws in order to help protect Florida homebuyers from predatory lenders. Some of the provisions of this new set of laws include the prohibition of a lender charging points and fees in excess of 6% of the total principal financed amount, the prohibition of a mortgage company issuing a loan to a borrower in an amount that the borrower could not reasonably afford to repay, and the prohibition of the financing of single-premium credit insurance, among others.

If you're buying an Orlando home, you qualify for both federal and state FHA, USDA, and VA loans. First-time home buyers qualify for Florida FHA loans with below-market interest rates, and, depending on their eligibility, may also qualify for a loan in order to cover down payment and/or closing costs. Teachers and other professionals who work in an educational capacity may qualify for Florida's Extra Credit Teacher Home Purchase Program, a down payment assistance loan with forgivable interest.

In addition to FHA loans, the state of Florida also offers comparable programs to persons with disabilities or persons who live with and care for persons with disabilities. The state also offers several unconventional loans designed to aid homebuyers with the costs of their monthly mortgage payment. For example, Florida's Interest Only PLUS loan provides qualified homebuyers with a 100% financing 35-year loan that only requires payments toward the accrued interest on the mortgage for the first five years of the loan -- borrowers do not have to pay toward the principal amount borrowed until after the first five years. The individual requirements of each of these loans vary depending on the county in which you are buying a house. Specific requirements can be obtained through the Florida Housing Finance Agency.

Shopping for a mortgage can be a threatening process. If you think you’d like some help, you might think about going through an Orlando mortgage broker.

A mortgage broker doesn’t actually make loans, but instead helps you find a lender who will offer you a loan on attractive terms. In that respect they work like an independent insurance agent, having contacts with a variety of companies and able to match you up with the one that best suits your needs.

An Orlando mortgage broker can be particularly helpful if you have a situation that might make it difficult to shop for a mortgage on your own. You may have a weak credit score, have limited funds for a down payment and closing costs, be in the market for a jumbo loan or simply lack the time to investigate various lenders on your own.

In those situations, a broker may be able to suggest one or more lenders who will lend to someone in your situation or will offer more attractive terms than other lenders might.

You do have to pay for this service, of course. In most cases, the broker’s fee is rolled into the loan itself, either in the form of a slightly higher interest rate or added to the closing costs. You can save money by finding a lender on your own, but that depends on whether you have the time or inclination to explore various lenders to find the best deal.

Locating an Orlando Mortgage broker

So how do you find a good Orlando mortgage broker? The best way, of course, is by personal recommendations from family and friends. Failing that, look up several in your area that seem to specialize in loans for borrowers in your situation and contact them by phone. Eliminate any that seem unprofessional, don’t give you straight answers to your questions, try to pressure you in any way or who you just feel uncomfortable with.

Of the others, pick a few and meet with them at their offices – don’t let them come to you. You can tell a lot about a broker’s operation by the way their office is run- does it seem professional, courteous and efficient? If a broker doesn’t even have an office on the other hand, that may be a sign they’re new and inexperience or simply haven’t been able to generate enough business to afford one.

What to expect

A broker should interview you about your mortgage needs and present you with a variety of options, which he or she should be able to explain in detail. Avoid brokers who give incomplete answers or try to push you toward one particular option without exploring alternatives. Also, don’t sign anything committing yourself to working with just that broker – you’re entitled to work with as many different brokers as you wish, and don’t have to commit to any until it’s time to actually submit a mortgage application.

Be aware that some lenders are reluctant to work with mortgage brokers these days, because some brokers had a tendency to steer risky clients to them and hide their shortcomings. That’s another reason it’s important to find a reputable, professional broker – the good ones will still have their relationships with lenders intact.

You should also be aware that a broker is not necessarily obliged to look out for your best interest. In some cases, brokers have been known to steer borrowers to loans that were more profitable for them, rather than beneficial to the borrower. That’s why you have to stay on top of things by asking the right questions and preferably obtaining mortgage offers from several different brokers.

Ask about compensation

In particular, you should ask a broker how they get paid and what their compensation is for a particular loan – and does it differ from other loan offers you might consider. Other questions to ask include what is the APR (annual percentage rate) on a loan, what are the closing costs and any other fees that might be included.

If you’ve got a credit rating of 780 and can put 30 percent down on your home purchase, you probably won’t need a mortgage broker – you can likely find a lender who’ll offer good terms on your own. But if you don’t fit the ideal borrower mold or are looking for a jumbo loan or have other special requirements, going through a mortgage broker may be the sensible thing to do.

How lenders assess Orlando mortgage applications has changed a lot since 2007. What was acceptable a few years ago may not be so today. The following are some common homeownership myths:

Myth: It’s a bad time to buy an Orlando home.
Fact: Orlando mortgage rates for fixed-rate mortgages are at historical lows, creating stable payments and long-term savings for today's Orlando homebuyers and house prices have fallen at a record pace. Additionally, there is some financial relief for first-time homebuyers through the recently enacted Housing and Economic Recovery Act of 2008 and foreclosures have increased to record levels, leaving lots of housing supply on the market with unequalled demand. The combination of these factors generally equals greater affordability, and makes now a good time for many to consider homeownership.

Myth: Buying an Orlando home is just too risky; I'll end up in foreclosure.
Fact:The recent news on foreclosures is understandably frightening. Certainly if you lose your job, go through a divorce, or suffer an illness, you could have real trouble paying your mortgage, or rent for that matter. In recent years, we've even seen an increase in excessive obligation–just too many bills–as a reason for delinquency. While you can't always solve for the unexpected twists and turns of life, good budgeting and responsible credit practices can decrease the likelihood of a foreclosure. Also if you have trouble paying the mortgage, contact your lender immediately!

Myth: You can't buy a home in the U.S. if you're not a citizen.
Fact:If you're a permanent or non-permanent resident alien, you can purchase a home in the U.S. In order to qualify for a loan you typically need to be a permanent resident alien with a valid USCIS card or, a "Green Card" and Social Security number. If you are a temporary resident alien with a valid work permit and Social Security number and have been in the United States continuously for the last 2 years, with steady employment and good credit history you may also qualify for a loan.

Myth: If you don't have a bank account or credit cards, you can't qualify for a mortgage.
Fact: Having a bank account is always a good idea and helps you establish credit. However, lenders can approve you for a mortgage even if you don't have a bank account or credit cards. You'll likely need to keep records showing a history of payments you've made for items such as rent, utilities, and car payments.

Myth: Lenders share your personal financial information with other companies.
Fact: By law, banks and other financial institutions are restricted in their uses and disclosures of information about you. In some situations, you may choose to restrict the disclosure of your information if you don't want it to be shared. If you are unsure how your information will be used, don't be afraid to ask – it's your right to know.

Myth: If you're late on your monthly mortgage payments, you'll lose your house.
Fact: If you have a financial hardship, like the death of your spouse or a medical emergency, and fall behind, it's possible to keep your home and get back on track if you contact your lender early (the organization to whom you make your monthly mortgage payments, sometimes also referred to as your mortgage servicer).

If you experience a change in your financial situation and think that you will fall behind or have fallen behind on your mortgage payment, call your lender immediately.

Despite popular belief, lenders do not want to foreclose on homes. They want to keep you as a customer for life. In fact, lenders typically lose money in the foreclosure process, so they are always looking for ways to help you make ends meet.

Myth: You can't get a mortgage if you've changed jobs several times in the last few years.
Fact: Not true. You can change jobs several times and still get a loan to buy a home. Lenders understand that people change jobs. The important thing is to show that you've had a stable income and good credit.

Although Orlando home buyers need to sign sales contracts by the end of April to qualify for the $8,000 first-time and $6,500 repeat home buyer tax credits, qualified active military servicemen and women have an additional year to take advantage of these incentives.

Under a legislative provision targeting active members of the military, the Foreign Service and the intelligence communities, the tax credit was extended for one year beyond the current deadlines of April 30, 2010 for a binding sales contract and June 30, 2010 for settlement and closing.

The provision only applies to home buyers in the above mentioned groups who have served on official extended duty for 90 days or more outside the U.S. from Jan. 1, 2009 to April 30, 2010.

Also, service members who must sell their home because of official extended duty are excluded from a rule that requires buyers to repay the credit if they move out of their home within three years.

Builders — particularly in cities and towns with a large population of military personnel — should take advantage of the opportunity to market the tax credit extension to qualified military families that are looking to purchase a home.

Resources geared to helping builders spread the word about the benefits of both the tax credit and homeownership are available at www.nahb.org/taxcreditmaterials.

More information on the special provision for military service members can also be found at www.federalhousingtaxcredit.com.

Refinancing the Orlando mortgage has become very important for many homeowners. Unfortunately, not many are aware of the steps to get better deals from lending companies. So here is a simple guide that you can use if you want to refinance your mortgage.

You have to understand that refinancing your Orlando mortgage can offer a lot of benefits for you as a homeowner. Unfortunately, there is little information about refinancing which makes this path seem too intimidating. There are also some techniques that you should know in order to further cut the costs and charges of obtaining new loans. The good news is that there are practical steps that you can do right now to guarantee success in mortgage refinancing.

Immediately Improve Your Credit Score

Your credit score plays a Large factor when you apply for refinancing of your Orlando home mortgage. Unfortunately, there is little you can do to immediately improve your credit score. However, there is a good method to immediately see a change in your credit score and it does not involve complicated steps.

As you may notice, your credit score may be adversely affected if you have several active credit card accounts. If you do not have a very nice credit score, your capability to get favorable refinancing terms may be affected also. What you can do is to let credit companies know that you intend to close your accounts. You will be surprised that an immediate positive change in your credit score will become more apparent. Many people are not aware of this technique. You can try it so you can improve your score and get better refinancing rates.

Check Your Credit Report after Closing Your Credit Lines

One month after you make the request to close your credit lines, it is advisable to check your credit report. You should see a special line in the report indicating that your credit lines have been closed "at customer's request." You should let the mortgage refinancing company know that you have personally requested the closing of the credit lines in order to get better credibility. This will have a good impact on your application for refinancing.

There are also other benefits that can be enjoyed if you check your credit report. There are times that errors can manifest in your report. Look for such errors in order to further improve the score of your credit. A better score means you could easily secure better terms for refinancing.

Avoid Private Mortgage Insurance

As much as possible, you have to avoid getting involved in private mortgage insurance. This will surface if you apply for refinancing especially if the amount of the loan is more than 80 percent of the value of your home. What you can do is to simply pay-off your credit card debts and to make improvements to your property. These steps will help your get better deals from refinancing companies.

These tips are not difficult to follow. The best thing is you can get better terms if you apply these steps. The key in getting better refinancing terms is to know your proper and best options.

British real estate buyers have for the last 10 years or so ensured the ever rising status of purchasing an Orlando home. With the recent financial crisis having caused huge disruption with regards to avenues to go down whilst looking for an Orlando mortgage, it currently means that a little added thought and attention is desired when signing your name on the mortgage forms. The rules have changed and the goal posts have moved so it's worth noting what you need to do to ensure your getting the best deal available in relation to your own credit history and merit. There are delicate but crucial differences in UK mortgages and Florida mortgages that must be highlighted before wading into anything, and remember that the bank or mortgage broker isn't really liable for making you aware of these differences.

It is categorically your own responsibility to make sure that you have all the applicable information to hand prior to making that final decision. It is undeniably advisable to look for a mortgage broker/company that has precise experience of dealing with British buyers, and who can understand what the difference in requisites of legality in the market mean.

Naturally there are different rules for mortgages on properties to be used as primary residence, second homes and as investments – also every now and then there are different or supplementary rules to follow for foreign residents on top of those. In other words it is very simple to unknowingly go down the wrong path when choosing your Florida mortgage. Typically 75% LTV mortgages are obtainable through self certification though you would also have to reveal your levels of expenditure as well as your revenue. The borrowing rate would also be moderately comparable to that used in the UK of around 3.5 times your earnings.

Reverse mortgages are a new type of Orlando mortgage designed specifically to be appealing to older homeowners. In regular mortgages, the homeowner pays the lender. In reverse mortgages the opposite is true – homeowners receive money that does not need to be repaid until the home is sold, the homeowner dies, or does not use the home as the primary residence.

There are advantages to reverse mortgages, including:

• tax advantages.
• supplemental retirement income.

They may be a good idea for a homeowner who has a great deal of equity in their home but no other assets or sufficient retirement savings, and wishes to stay in their Orlando home rather than downsize.

There are other factors to consider. If you dream of giving your Orlando home to your children after you die, a reverse mortgage may make that difficult since the equity in the home will have been depleted.

Reverse mortgages require research to make sure it is right for each homeowner, and there are usually requirements, such as:

• The homeowners must be at least 62 years of age.
• The home must be the primary residence.

Beware of Fraud

Reverse mortgages are a legitimate type of mortgage designed to help older Americans in their later years. However, because they are new and not always well understood, some unscrupulous individuals use reverse mortgages to rob seniors of the equity in their home. Beware of the following:

• Someone who is selling something like an annuity and suggests that a reverse mortgage is a good way to pay for it.
• A mortgage that you do not fully understand or are not sure you need.

If you are unsure of what you are signing, don't sign anything. And remember, you have three days after signing to change your mind with no penalty.