Real Estate in South Florida | Things You Must Know for First-Time Home Buyers

Real Estate in South Florida has been on the market for years and it’s time to buy or sell your first home. In this article, I’ll tell you what you need to know about buying property here in South Florida, how much it will cost, who can help you with that process, and more

What Is It?

A house is a building made of wood, brick, or other material. A lot of people think houses are just one thing but they’re not. They have different names like “the condo,” “apartment” or even “townhouse.” The main difference between them all is the size and number of rooms. Houses come in many shapes and sizes from small single-family homes to large apartment buildings.

Houses are also categorized as either owner-occupied or renter-occupied. Ownership means you own the house outright while renting out part of it (or both). Renter occupancy means someone else lives there. This could be a spouse, friend or relative. Some places allow you to rent out only part of the house, others don’t let anyone do that at all.

When Can I Buy One?

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There’re two ways to get a mortgage on a house in real estate in South Florida: private or government-backed mortgages. Private loans require no money down and interest rates are usually lower than those offered through banks. Government-backed loans however usually require some money down and have higher interest rates, but you can get one even if you have less than perfect credit.

If you’re a first-time home buyer, the government also has some programs in place to help you out as well. The more people that own homes, the stronger our economy becomes. This is why the government has special loans and grants for those that can’t quite afford to buy a house on their own just yet.

A Little Bit of Everything

There are so many different types of homes to pick from down here real estate in South Florida. You could buy a brand new home, one that’s not even finished yet! These can be found in lots called “communities.” Did you know there are special tax breaks for people who buy houses in these communities? Talk to a realtor and see if you qualify for one of these special deals.

Here are things you should know as first time home buyer:

Down Payment:

A down payment is what you pay the bank when you buy a home. It’s usually money for the house itself. Government loans usually require at least some money down. This is to make sure you’re serious about buying a home and won’t just be running away without paying later on.

You can put as much or as little money down as you like, but keep in mind the less you pay now, the more you’ll have to pay later on. Your bank can tell you exactly how much your monthly payments will be with different amounts of money down. You don’t want to over-extend yourself!

When you get a mortgage, you’ll have to sign a bunch of papers. Make sure you read all these papers and the fine print very carefully before signing.

You’ll also have to pay “points” when getting your house financed. A point is charged by the bank for giving you the loan. Although the number of points can vary widely, you can figure on paying at least one percent of the value of your house in points.

These are just a few things to think about before you buy a house, but there’s so much more! Every mortgage and home is a little different so look carefully before you make a final decision.

Buying Or Renting?

This is probably the most important thing to think about as a first-time homebuyer. Should you rent or buy? Well, it’s a personal decision and there are pluses and minuses to both renting and buying. Let’s take a look at both so you can make an informed decision.

Most people believe that buying a home is the best possible investment you can make. While this may be true in the long run, you need to think about whether or not you can afford to make the monthly payments and if you have enough money for a down payment on a house.

If you decide you would like to buy a home, let’s talk about the 3 types of loans that are out there.

Conventional Loans

These are the most common type of loans and they are available from any bank or savings and loan association. The minimum down payment for a conventional loan is ten percent of the purchase price.

Government Insured Loans

These loans are often called FHA loans because they are underwritten and insured by the Federal Housing Administration. Almost any income earner with a steady job can qualify for an FHA loan. One of the advantages of an FHA loan is that you can sometimes buy a home with little or no money down, as little as $100 in some cases!

Veterans Administration Loans

These loans, often called “VA” loans are underwritten and insured by the Veterans Administration. Eligible borrowers can get both a home loan and a mortgage loan. The money can be used to buy a house or to build a home. If you are a member of the armed forces, you may be able to use this benefit even if you are not currently on active duty.

In addition to the 3 main types of home loans, some banks and savings and loans offer what is called “shared appreciation,” or “profit-sharing” loans. With this type of loan, the bank or savings and loan assumes a portion of the home’s appreciation.

These are just 3 of the many types of mortgage loans out there. Your local bank is always a good place to start looking for information on them.

1. Start your search for a home with a good real estate agent.

2. A good real estate agent can help you find the home that is right for you,

3. as well as explain all the incomprehensible terms and conditions of the financial world of home buying to you!

Here are some other tips on finding a good Real Estate in South Florida agent:

• Ask friends or family for recommendations.

• Check to see if your employer has a list of approved real estate agents.

• Look in the phone book yellow pages for real estate agents.

• Check to see if the real estate agent is a member of any professional organization. The National Association of Realtors® sets strict standards of practice and ethics for its members.

If you have any questions about the things you should know before you buy a home, call our professional licensed real estate in South Florida for more information and assistance in finding you. trueoakrealty.com will help you! Call (954) 280-7778

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