Choosing a mortgage lender in Florida
Rates between mainstream lenders are far closer than the advertising suggests. In Florida the bigger variable is whether the lender models your insurance and property tax correctly. A quote built on a national insurance assumption and the seller’s capped tax figure is not a quote for your house — and the gap shows up as a payment shock after closing.
Insurance, which is materially higher here than the national models assume; and the property tax reset, because the seller’s bill may reflect an assessment capped at 3% or CPI, whichever is lower† a year for a decade while yours will be based on what you paid. Both land in your escrow, and both are knowable before you commit.
The kinds of lender, and what they are good at
| What they are | Best when | |
|---|---|---|
| Bank or credit union | Lends its own money | You have an existing relationship, or want simplicity |
| Mortgage broker | Shops multiple lenders for you | Your situation is unusual — self-employed, credit history, unusual property |
| Direct lender | Originates and often services | Straightforward salaried borrower, competitive on price |
A broker is doing for lending roughly what an independent insurance agent does for cover: reaching a set of underwriting appetites rather than one. On a straightforward file that is worth less; on an awkward one it is the whole difference between approved and declined.
What to compare, in order
- The full estimated monthly payment, including escrow for insurance and tax. Not principal and interest, which is the number everyone quotes and nobody pays.
- What insurance figure they used. Ask directly. If it is an estimate rather than a real quote on the address, the payment is fiction.
- What tax figure they used. If it is the seller’s current bill, the payment is fiction for a different reason.
- Lender fees, itemised. Origination, underwriting, processing. These genuinely vary and are negotiable.
- Points. Whether a lower rate is being bought, and whether that trade suits how long you expect to hold the loan.
- The rate, last. It matters, but the spread between reputable lenders is smaller than the spread between a correct and an incorrect escrow estimate.
Florida-specific costs a lender should mention
- Documentary stamp tax on the note at $0.35 per $100†, and intangible tax at 0.2% of the loan amount† — both on the loan amount rather than the price, so a larger deposit reduces them proportionally.
- Prepaid insurance and escrow reserves, which are larger here than out-of-state buyers expect and are the usual reason cash to close comes in above estimate.
- Flood insurance, if the property is in a high-risk zone and the lender requires it.
- Assistance programmes where you qualify — funding is allocated first come, first served and is exhausted within a programme year†, so this is a conversation to have before house-hunting rather than at contract.
Questions worth asking
- What insurance premium did you use, and was it a real quote on this address?
- Did you use the current tax bill or a reset estimate?
- Will you service the loan or sell it, and does that change anything for me?
- What could still change between now and closing?
- Are there conditions on the approval I have not satisfied yet?
- Do you participate in Florida Housing programmes?
A recommendation is not automatically a problem — agents work repeatedly with lenders who close on time, and that has real value. But ask whether there is any business relationship, and get at least one independent quote regardless. The answer to both is usually fine, and asking costs nothing.
Warning signs
- A quoted payment with no escrow line, or an obviously low one.
- Reluctance to itemise lender fees.
- Pressure to lock immediately without explaining the lock period and what happens if closing slips.
- An estimate that uses the seller’s tax figure after you have raised it.
- Anything arriving by email changing wire instructions. That is fraud, and closing is exactly when it happens.
Related
Common questions
How do I choose a mortgage lender in Florida?
Compare the full estimated monthly payment including escrow, and ask what insurance and tax figures they used. In Florida a wrong escrow estimate moves the payment more than the spread between reputable lenders’ rates.
Why was my Florida mortgage payment higher than the estimate?
Usually insurance priced from a national assumption rather than a real quote, or property tax taken from the seller’s capped assessment rather than a reset estimate. Both land in escrow.
Should I use a mortgage broker or a bank?
A broker reaches multiple underwriting appetites, which matters most when your file is unusual — self-employed, thin credit history, or an unusual property. On a straightforward salaried file the advantage is smaller.
What Florida taxes apply to a mortgage?
Documentary stamp tax on the note at $0.35 per $100 and intangible tax at 0.2%, both calculated on the loan amount rather than the purchase price — so a larger deposit reduces both proportionally.
Should I use the lender my agent recommends?
Possibly — agents work repeatedly with lenders who close on time and that has value. Ask whether there is a business relationship and get at least one independent quote anyway.
Documentary stamp and intangible taxes are set by Florida statute; rates, fees and underwriting are set by each lender. Assistance programme terms are set by the Florida Housing Finance Corporation and revised between programme years.