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Fort Lauderdale Real Estate | 5-Tips When Buying a Home
Things to Remember When Buying a Home in Fort Lauderdale South Florida
First time home buyers in Fort Lauderdale, Wilton Manors, Miami Beach and all through out South Florida is growing. A large increase of first time home buyers are expected to enter into the South Florida market in 2013. When it comes to making a major purchase like a home, people tend to be overambitious with their must-have lists. You need to realize that when it comes to South Florida, Fort Lauderdale real estate, Wilton Manors real estate and Oakland Park real estate, you need to be realistic about what you absolutely must have in your home or condominium and perhaps what you can add on later. Keeping these 5-things in mind during your search for the right property. The Henri Frank Group at RE/MAX Preferred are Fort Lauderdale Realtors, Wilton Manors Realtors, Miami Beach Realtors and throughout South Florida Realtors that can help you to keep the single family home, condominium or townhome property search realistic and within your reach to homeownership.
Being realistic is one of the most important things when it comes to buying a home. Keeping your eyes on that life dream of a particular South Florida home, prepare to be broke or disappointed. Especially if you dream big for a property in Fort Lauderdale, property in Wilton Manors and property in South Florida. Be sure before the property search begins you meet with a mortgage counselor. Lynn Whitefall, Mortgage Originator and Branch Manager of Gold Star Financial in Coral Springs South Florida adds, “get preapproved, be sure you know what you can afford and how much your monthly payment will be including property taxes and insurance.”
Look at your budget and determine how a house fits into it. Fannie Mae recommends that buyers spend no more than 28% of their income on housing costs. Go much past 30% and you risk becoming house poor.
PAINT IS JUST A COLOR
One thing that potential homebuyers are always complaining about is the color of a specific room. Many will write it off as a home they don’t like when in reality their objections were merely aesthetic. Paint can be changed! If you are at the point in your life where you can afford to buy a home, then you can most likely afford a few cans of paint. Instead of dismissing a property because of the colors used in the rooms, imagine what it could look like with your personal style.
IT IS A LIMIT, NOT A GOAL
When you are working with your South Carolina real estate agent, you will most likely decide on a budget, or what you can afford to spend on a home based on your approved mortgage and the money you will be putting down. Unfortunately, just because your limit is $300,000 does not mean you should spend that much. You need to remember that the list price, even when negotiated down, is just the tip of the iceberg with regards to home purchasing costs. You still need to consider inspection, closing, and paying your realtor. If you can find a home you are happy with that is well below your budget, go for it and use that extra money toward any renovations you would like to do.
WHAT CAN YOU DO YOU YOURSELF?
One really great way to save money when purchasing a home is to buy a property that needs some work. Here comes that honesty again, because you need to be realistic about what kind of renovations and projects you can handle on your own. Buying a fixer-upper and then hiring someone else to do all of the work will get very expensive, but if you have a property that just needs some minor TLC, than you will be able to do it for a fraction of the price of hiring a contractor.
THE 203K RENOVATION LOAN
Without exhausting your personal savings and compromising your emergency fund, the FHA 203k loan program provides home buyers the opportunity to buy and fix up a property. This loan allows South Florida home buyers the opportunity to purchase a home for less money and include whatever costs to make required repairs or desired updates, or even to fully renovate the property, all into one simple thirty-year fixed loan. It is easy, using the money set aside by the bank, ALL work starts AFTER purchasing the property.
Dennis J Hearing, Home Mortgage Consultant and Renovation Specialist at Wells Fargo Home Mortgage in Fort Lauderdale Florida is a leading expert in the 203K renovation loan and believes that in 2013 as the lenders shadow inventory of foreclosure properties come onto the market, the 203K renovation loan will be needed and Wells Fargo Home Mortgage will be increasing the number of home buyers using this program will increase.
KNOW YOUR FINANCING OPTIONS
Know your financing options, know what you qualify for and that will help you make a smart decision to home ownership. So remember when deciding on your new home, townhome or condominium, think with your head, not your eyes! Know what you can afford to be realistic about your budget, your needs, and your skill set. From there you will be well on your way to becoming a happy homeowner.