6 min read
If you are shopping for, or contemplating purchasing, a new home there are a lot of questions that come to mind. Below are answers to some of the most important ones.
Is it time to buy instead of rent?
Many potential buyers plan for the monetary advantages that follow from purchasing a home instead of being a tenant. A few of the benefits of buying are the freedom to do what you like with the property, the financial advantages, and the sense of pride that comes from owning a home. You also gain economically and learn to appreciate the value of investing.
When is the best time to purchase?
Financial security and job security are the two central factors to think through before investing in a property.
Ask yourself:
- Do I have a stable and predictable job?
- Do I see myself in this role for years?
- How blemished is my credit score?
- Am I on time when paying important bills?
Can credit scores affect my readiness to own a property?
Credit ratings are a snapshot of your financial health. Credit bureaus give you a score derived from several things, such as how reliably you pay bills on schedule.
Having a less-than-perfect credit rating does not mean you cannot secure a loan to buy a house. It can mean that finding the right loan takes longer than usual.
How much cash should I set aside for the down payment?
Talking through all of your concerns with your real estate professional is a good plan. Lenders generally expect a new purchaser to bring a down payment that is a meaningful percentage of the purchase price, though the exact figure varies. It depends on the loan program, the market at the time, and the repayment period of the mortgage you request.
Some programs allow far less than the traditional twenty percent, so it is worth asking your lender what you actually qualify for rather than assuming.
Where a home inspection fits in
Once you are under contract, the inspection is the step that turns a house you like into a property you understand. It tells you the condition of the roof, the electrical, the plumbing and the HVAC before you own them, and it gives you and your agent something concrete to negotiate from.
In South Florida there are a few extra items worth knowing about early: a wind mitigation inspection can meaningfully lower your insurance premium, a four-point inspection is typically required by carriers on homes twenty-five years or older, and on an older property a sewer scope can save you from inheriting a five-figure repair.
One last thing
Buying a house for the first time is a big step forward, and it can also be demanding. Stay in close contact with your real estate professional and your lender. And don't settle on the first home you see - find the one that is right for your family, and make it your own.