Choosing the right experts to help in your Anna Maria Island property search is imperative. Zoning, Coastal Construction Lines, Riparian rights, Vacation Rental regulations, insurance, property easements and the list of important considerations when purchasing Anna Maria Island property can go on and on. One of the key professionals in a successful property purchase is choosing the correct lender. Below are the top ten questions to ask when choosing your Anna Maria Island lender.
- How many loans do you perform on Anna Maria Island on average a month or quarter? If the answer is one or two per year then ask if they service other barrier islands like Longboat or Lido Key. If the answer is no then we would suggest you move on. One challenge with Anna Maria Island property is mainland lenders can struggle to understand land value versus improvement value. More specifically, the land is normally worth more than the home.
- Where is your office located? This can be another key indicator of how local the lender is. If their office is in Omaha, Nebraska you may want to look elsewhere.
- What are your fees, rates, and closing costs in general? Are they negotiable? A good faith estimate will be provided by the lender however good to work through fees prior to investing your time with the wrong lender.
- Do you perform remote closings where paperwork can be signed elsewhere? This can be key for second homes. Most lenders provide remote closing but good to check to be sure.
- What loan to value is required for the property? Loan to value (LTV) is the amount put down to secure the note. For example a $1,000,000 loan that has an LTV of 20% would mean the amount needed to put down to secure the note is $200,000.
- What type of mortgage would you suggest? What plan would you suggest for the situation? Sometimes out of the ordinary loans can create the best plan for second home buyers.
- Do you offer discounts for inspections, auto-payment set up or setting up specific accounts?
- How long will the loan approval process take? Most lenders can approve a loan in less than a week. If the lender answers significantly longer ask why?
- How long will it take to close the loan? Most lenders can close within 45 days. If the lender asks significantly longer ask why?
- Do you have any pre-penalties for paying the loan off early? There should be no penalties for paying off the loan early.
BONUS question: If you are considering condominiums as part of your purchase ask if the lender provides condo-tel loans? This is when there is an onsite staff member that assists in booking vacation rentals. While there are not many condo-hotel properties on Anna Maria Island you may find the perfect condominium that your lender of choice cannot support. If this is a concern seek more information from your real estate professional and they can let you know if this question should be posed to your potential lender.