â€œSave your money,â€ their parents advise.
â€œLocation, location, location!â€ their friendâ€™s friend cautions.Reasonable advice, for certain. But there some important elements of the home buying process which a typical local first time homebuyer doesnâ€™t usually hear. Iâ€™ve listed some of the most important ones, in no particular order:
1.Â Mortgage rates you see advertised arenâ€™t usually what you get
The banner ads are everywhere online: â€œ3.2% rates!â€ â€œNo money down!â€ But the truth is, mortgage rates vary greatly. The only way youâ€™ll know what rates you actually qualify for is to go through a complete mortgage application including credit pulls and income verification. One more point to consider: online mortgage calculators, while handy, can be deceptive if you do not factor in the real cost of tax, insurance and PMI when youâ€™re looking at an FHA-loan.Â
2.Â Every Tiny Bit of Debt CountsThink that $1400 left on your Visa isnâ€™t going to matter? Think again. Every iota of debt weighs in when your credit is scored. What many Fort LauderdaleÂ first time homebuyers arenâ€™t told is that when you apply for a mortgage, nearly every element of your financial history is going to be analyzed with a fine-toothed comb. All debt will be factored in as the bank figures out how much it is willing to lend. Standards have stiffened, so the earlier you dispose of even small issues, the better.
3.Â Your Choice of Agent Makes All the Difference
me guess: your friendâ€™s friend also has an agent to recommend (she carpools
with his sisterâ€™s next door neighbor). Thereâ€™s no reason you shouldnâ€™t
interview her: maybe thatâ€™s the right fit for you. But donâ€™t just sign up with
the first agent you find: this is a working relationship that can shape your
familyâ€™s future. Your agentâ€™s connections, experience, and market knowledge
will be key â€” and can well make the difference between your writing an offer
that gets accepted or not.
Â Â 4. Remodeling costs more than you think
Youâ€™ve found a fixer: your energy is to be applauded. But before you write that offer, if you are one of our local first-time homebuyers, be certain to have penciled out the bottom line cost of bringing the home up to the standard you require to be move-in ready. You may well be able to live with some items that you will fix over time, but in all areas, budget 20% more than your estimate.Â Â
5. What matters is what the bankâ€™s appraiser thinks the house is worth
Getting a loan approved isnâ€™t as simple as having great credit and a down payment. Your offer also has to pass the bankâ€™s approval process before they will okay the loan.
6. Getting inspected doesnâ€™t mean there wonâ€™t be problems
Should you skip the inspection process? Absolutely not. You need to know if the home is structurally sound. But owning a home involves continuing expenses -- and problems can pop up even on Day One of ownership. Make sure you have funds set aside.
7. Buying your first house can be stressfulâ€¦really stressful!
One of the absolute best pieces of advice I can give is to relax â€” expect the unexpected! Buying your first house is scary only if you allow it to be. Since it is all but certain that there will be ups and downs, allow the possibility that may not get any particular house. Veteran homebuyers come to understand the cost of overly emotional involvement â€” when you do, too, you will be better able to roll with the punchesâ€¦and to make financially sound decisions.
youÂ need more informationÂ Â just
call me! Iâ€™ll fill you in on everything Fort Lauderdale
first time homebuyers need to know.