As a Ocala real estate professional I have to remind myself on a regular basis that, over time and with experience, the basics of mortgage finance become intuitive to us. Most of us can rattle off, almost without thinking, the monthly payments of any principal amount. But our clients do not have the same bank of experience and many people are not comfortable with numbers.

And although we are familiar with any number of lender's websites and know all the front end and back end income and expense ratios that are used to determine weather a consumer qualifies for financing, the fact is that our clients don't. "It's Greek to me," is the look that I see in many clients' eyes when I start asking about their personal finances. That's why I quickly pass them along to a Ocala mortgage broker.


Understand how to work with Ocala Mortgage Company

As mentioned above, it's unlikely a client will understand the financial metrics as would a real estate or mortgage professional. However, I am still amazed when somebody comes into my office and asks me how much they can afford. This question, which, incredibly, extends to all socioeconomic groups, speaks volumes about the clients' lack of perception when it comes to understanding or maintaining a personal spending budget.

They simply have no idea as to what it costs to maintain their personal lifestyle. That is not to say that I cannot run the raw numbers they give me to see whether or not they meet the ratios of a particular lending program, but this is not analyzed in the context of their overall personal budget. While I crunch the numbers to show them the disposable income, it is the client's responsibility to understand how that impacts their current lifestyle and spending patterns.

How the Mortgage Payment is constructed

Within the Ocala mortgage marketplace all the available programs, in spite of their claims and promises, come down to the same concept: the terms under which you are borrowing money from a creditor. Simply stated, there are three variables involved; principle amount, a predetermined period of time, and an agreed upon interest rate. This equates to a monthly payment to you that needs to be serviced every month. It's important to find a Local Real Service provider to help you find your place toward the end of the bubble, but none of them redefined how a mortgage payment is calculated. Many real estate websites have links to mortgage calculators to help eliminate the need to fully understand the math behind the concept. So, if you cannot calculate the payment yourself, you need to consider whether or not you have the understanding that you need in order to commit to taking on the debt.

In's and Out of Ocala Real Estate Market

Though the Ocala real estate market had a small upswing for a few months last year thanks to the new homebuyers tax credit, it then turned back around and settled into a more stable level slightly up from the April 2009 low.

The main reason for this, as usual, is foreclosure properties. Foreclosure properties make up a large part of the market - in some areas, as much as 50% or 60%! And what's worse, because banks are anxious to get rid of them quickly, and because the previous occupants are often incapable or unwilling to keep the home in good shape, these properties on average sell for 27% less than conventional home sales. This keeps the entire market from being able to recover at the same rate of some of the other sectors of the economy.