Last year, despite concerns about climbing interest rates and higher prices, 26% of total homebuyers were those purchasing for the first time. Although that’s a lower percentage than the previous year, people are finally ready to start searching again.
Buying real estate can be a stressful process, but going into the search with an understanding of what to expect certainly helps. That’s why we’ve put together this guide for first-time home buyers. We also have exciting news about a seminar to teach you more about buying your first home.
Here’s what you need to know before you purchase real estate here in the Florida Keys.
Make Sure You’re Ready
Buying luxury real estate is no small investment, so you want to be sure you’re ready to commit to the home and the area. The average mortgage loan term is between 15-30 years.
For instance, if you’re interested in learning more about the Florida Keys, check out some of the benefits of living in the area!
Taking a first-time homebuyer class through a real estate agency will teach you important information and skills to make homeownership easier. Essentially, it’s an educational workshop that covers key topics such as budgeting, determining what you can afford, assessing creditworthiness, and more.
Ensure You Have a Stable Income
You must have a stable source of income before you buy a house. You also need to understand how much you can afford without overextending yourself.
Be sure to have enough to cover moving expenses, closing costs, and the down payment. Additionally, you should aim to have three to six months of expenses set aside in the event of an emergency, such as surprise repairs.
Explore Your Mortage Options
There are many mortgage options out there, each with varying eligibility requirements. Here are the categories, which you may recognize:
- Conventional mortgages
- USDA loans
- VA loans
- FHA loans
There are also different mortgage terms, although most buyers choose the 30-year fixed-rate option. That means you can pay off the home in 30 years while the interest rate remains unchanged.
States and cities may also offer assistance programs, especially for first-time home buyers. You might want to look into low-interest-rate mortgages, tax credits, etc.
Get the Preapproval Letter
A mortgage preapproval assesses your current financial situation and outlines how much money you can get based on factors such as your credit score and history, W-2s, etc.
The preapproval letter is an official document from a lender. It will inform you how much you can afford, and you’ll be able to submit a stronger offer. You can request it before you start home shopping.
A Seminar for First-Time Home Buyers
There’s a lot that first-time home buyers should know about the process, and we can’t cover it all here. Hopefully, these tips provided some useful information to get you started on your journey.
Be sure to check out our seminar on March 7th full of real estate tips specifically for first-time buyers! Learn about our new mortgage partner, Coast2Coast Mortgage, and discover expert tips from Kristin Eklund to help you through the process of finding your dream home.
You can RSVP for the event by calling 305-741-7696.
Realty ONE Group Engage The Keys knows all about luxury homes and real estate in the Florida area. Contact us if you have any questions or if you’re ready to start the homebuying process.