FL First Time Home Buyer: Don't make the mistakes I did.
FL First Time Home Buyer
Hi there, my name is Jerome.
You're probably wondering what I'm doing here. Well, I live in Florida (not from from Port St Lucie actually). I bought a house 2 years ago. And swore I'd never go through that hassle again.
The problem wasn't with buying the house, so much as not knowing what I needed to do, as a first time buyer. I wasn't aware of what "points" were, or what PMI is, or why I should try to have to 20% down (and the benefits of that are). So, I figured I'd share my new-found knowledge with you.
FL First Time Home Buyer
There are many things to remember as a FL first time home buyer, as you would not want to ignore any of the important details. Buying a home for the first time can be very frightening, especially if you find yourself in a situation where you do not know what to do. As long as you know the basics, however, you should be able to find the perfect home to meet your needs, at a price that you can afford. In the end, taking the time to learn a little bit about how things work could save you a great deal of hardship in the future.
The first thing that you will want to remember at a FL first time home buyer is that just because a home looks good, does not mean that it is worth the asking price. For example, many homes have structural damage that you might not notice with the naked eye. While these homes might look fantastic, they will not be worth the asking price because there is so much that can go wrong with them. Therefore, it is absolutely vital that you hire a home inspector before signing to purchase any home. If the home needs major work within the next five years because of these damages, you will have no one but yourself to blame if you do not have the home inspected first.
Another thing to look at is the size of the yard, as it must be large enough to hold everything that you will need in the foreseeable future. For example, many young couples will begin a FL first time home buyer early on in a marriage, without having thought about how large their family will eventually become. You will want to have a yard that is large enough for your children to play in, while still having enough privacy from the main roads to keep them safe, so this must be considered before buying. The last thing you will want to do is move again within five years when you discover that you no longer have enough room for them.
Another idea that goes hand in hand with the size of the yard is the number of bedroom, as children will eventually get to a point where they are too old to share. If you have to build new bedrooms, the home will quickly become much more expensive that its original price, which is something that a FL first time home buyer ignore in many cases.
In the end, the decision as a FL first time home buyer is up to you. With that being said, there are countless resources available to help you make the right decision. It is also important to keep in mind that many first time buyers are able to receive better interest rates and are eligible for lower down payments. This means that the market is definitely good for these buyers to get their start and has never been easier to get involved with.
For a FL first time home buyer, the market can be an extremely scary place, especially if you are buying in an area that has been hit hard by the recession. The truth of the matter, however, is that there has never been a better time to buy in the area, as house prices are lower than they have been in quite some time and banks are beginning to give out mortgages once again. With that being said, there are a few things that you will want to look into before purchasing a home, just to make sure that you are getting a good deal. Before you make the final decision to purchase a home in Florida, take the time to learn about what you are getting into.
The first thing that you will want to be aware of is your credit rating, as your current credit rating could impact your finances for the next 30-years. This is because the interest rate that you receive as a FL first time home buyer will be dependent on your current credit rating and this will influence how much your monthly payments end up being. While it is possible to sign up for a flexible mortgage, it might be best to take a few months to maximize your credit score before applying. That way, you can lock yourself in at a low interest rate, which could save you thousands of dollars on your loan.
Another thing to consider as a FL first time home buyer is the location in which you are buying, as some areas within the state appear to be on the decline. If you buy in one of these declining areas, you will quickly run into some major problems, especially if you are looking at your home as an investment. As an area deteriorates, not only to home prices drop, but it can become almost unlivable for a family. While it is unlikely that these areas of Florida will deteriorate as much as an area like Detroit, it is still worth keeping an eye on the trends of an area.
A final thing to consider as a FL first time home buyer is the shape that a home is in, as many first time buyers make the mistake of thinking that they can fix a home up. Unless you are well versed in things like plumbing and carpentry, fixing a home yourself will probably not be worth your time, especially since you will need to have everything inspected. It is sometimes best to just purchase a more expensive house to begin with, since it will likely mean that fewer renovations are necessary.
Overall, there are many different options for a FL first time home buyer to consider and many different mortgage plans to get involved with. Make sure that you make a decision that is best for you because in the end, this is your hard earned money that is being spent on this home and it is you that will have to live in it.
Owning a home is a dream that many people share. Becoming a FL first time homebuyer can be challenging if you do not know what your options are or where to start. There are many programs out there that are made specifically to help FL first time homebuyers, giving you assistance to get your loan and even your down payment. Florida also offers what is called a homestead exemption for first a time home owner that allows you to use the homestead exemption on your taxes to reduce the amount of taxes each year as long as you reside in the home.
Down Payment Assistance Programs
In order to purchase a home, you will need to have a down payment. Being a FL first time homebuyer has its advantages as there are programs available to you that are not offered to those that have already purchased a home in the past. Below is a list of some of the programs available to help with your down payment. You can talk with your realtor and personal bank for detailed information on how to apply for any of these assistance programs.
Federal Home Loan Bank: This loan gives first time buyers up to $10,000 for such things as the down payment, any closing costs as well as some prepaid assistance. Homeownership Assistance for Moderate Income Loan: This loan helps to cover closing costs as well as the down payment offering up to $5,000 to borrowers. You have a total of 10 years to repay the loan. Florida Assist: This is a great loan as you will not have to repay it as long as you do not sell or refinance the home. It offers FL first time homebuyers with moderate income up to $10,000 to help with closing costs as well as the down payment. Tallahassee Lenders Consortium's State Housing Initiatives Partnership Funds: This program can be combined with any of the above programs and it offers borrowers up to $10,000 assistance to help cover closing costs and the down payment. This one also doesn't have to be repaid as long as you do not sell the home or refinance it.
Buying your first home is an exciting adventure but it can be difficult if you do not have a great deal of money to work with. This is where the above programs can come in handy. They help you to get the home of your dreams with little to no money out of pocket. Talk with your personal bank to see what types of home loans they offer for a FL first time homebuyer. Each financial institute offers different programs so if you're personal bank doesn't have something that fits your needs, shop around a little bit. Your realtor will also help steer you to lenders that can help you. Your personal credit score will determine what type of loans you qualify for so it is helpful to know your credit score and possibly to do a little credit repair to raise your score to get you a better loan.
What Do I Need to Know to Buy My First House?
Buying your first house is incredibly exciting and it can also be very intimidating. There are so many feelings that seem to sweep over you at various times throughout the process. Of course you are anxious, nervous, excited, and eager to get your hands on that first set of house keys. However, before you dive into the process as a fl first time home buyer you are going to want to do your research so that you know what you are getting into.
Before you get your heart set on a specific house you need to recognize that any fl first time home buyer must apply for and be approved for a home loan. Generally this means that you need to have a stable and lucrative full time job. The lending institution needs to know that you are going to be able to pay your mortgage payments for the duration of the loan. This means that you need to have a solid income, and that is why your job is so important. When you put in your loan application the lender will look at your financial history and one of the biggest details of that is your current income.
Once you have been pre-approved you will receive a pre-qualification letter. Any fl first time home buyer is going to want to take that letter to your realtor. This will help them know how much you can afford and it is also used as an insurance policy that you can afford to purchase a home.
Additionally a fl first time home buyer is going to want to spend some time investigating local and federal buying credits that you may qualify for. If nothing else re member that with the purchase of your home comes numerous tax benefits so do not loose any of your paperwork. Instead, hang on to all of that so you have it when tax time comes.
You must face your financial reality when you are trying to buy a home. The loan amount that you are approved for may not be an amount that you can actually afford. For example if you have a large car payment or extra school loans that you are currently repaying you may not be able to afford your full loan amount. Be realistic here because with a first home you do not need to buy the home that you are going to live in forever. This may mean that you go with something a bit smaller and less ornate, but it is a starter home after all.
Once you have a clear idea of what you can afford you can start to get into the fun details of where you want to live. Take a look at the various areas available to you and look at homes in those areas that fall within your budget. Once you find a contender you will ant to have it professionally inspected. Do not skip this step because it can end up costing you significantly more money throughout the years than it would have had you simply paid for it in the first place.
Be aware that the purchase price of a home is not the only expense associated with it. It is common for a fl first time home buyer to forget about closing costs. Typically your closing costs are an extra 1-2% of the purchase price. Be sure that you have that much cash set aside to cover them. If you do all of that soon enough you will have those keys in your hand and you will be moving into your very first home.