When it comes to Florida home buying and more so with securing finances on your home purchase, there are laws put in place that may be different from other states.  By learning about the legal portion of securing a Florida mortgage, you will be protecting yourself as well as expediting your Florida home buying experience. 

For example, Florida has a law in place that regulates variable interest rates when purchasing real estate. What that means is if you have a large mortgage loan you are guaranteed a fixed interest rate.  There is another law in Florida that does not allow interest to be charged before the mortgage is recorded.

It is also a requirement in Florida for your agent to provide you with a Transfer Disclosure statement.  This is a document provided by the seller to state everything about the property, including a list of what is included in the price. The statement should be detailed and include not only what is being left in the house such as appliances but the current condition of the house and surrounding property as well as any hazards that may be present.

If this is your first Florida home, you could be eligible for a FHA loan, which could cover your down payment and closing cost too. Home buyers that are employed in the education field can be eligible for additional credits too. There are also mortgages available to qualified buyers that allow them to pay only the interest for the first five years of their loan.

Another little known Florida law states that when you are late with your mortgage payments and your lender decides to pursue foreclosure, you have to be notified prior to its happening.  It has been known where a counter suit to a foreclosure ended up with the lender owing the homeowner damages. So if you ever come to a time when you are going to be late on a payment, find out your legal rights.

Also in Florida it is illegal for a lender to charge points and fees that total more than 6% of the loan’s principal. Of the many laws that are in place for the protection of home buyers, there are also laws that protect borrowers from taking out a loan that they can’t afford to repay in some states. Congress is working to set that law up nationwide in the aftermath of the recent housing crisis.

So after you find that Florida house of your dreams, learn the laws regarding this purchase that protect you. The more you learn the better informed you will be about the legal process of a Florida mortgage. Not only will you be protecting your rights, but you’ll save money too.