Buying a property is an exciting event in the life of any person. However, it is an action full of tensions and can be very stressful. Buying real estate in Florida is no exception, and real estate in South Florida can be daunting. Have you dreamed of owning a waterfront property in Florida and has explored ads about Jacksonville Beach? Or maybe you are unsure where to live and spend time looking in many areas and dozens of real estate ads Northern Florida. Before you begin this journey, consider several factors that allow you to make a seamless transition from being a home buyer to a home owner.
Get the total picture of your finances
Determine your debt vs. income ratio
Every loan must have a source of repayment, and this is calculated from the amount shown on your W2 form(s) divided by 12 (for monthly income). This result the by 28%, which is the maximum amount allowed as the cost of housing.
The total amount of debt vs. income is the percentage of all income required to meet their monthly obligations. Monthly payments of student loans, installment loans, and credit card balances are added to the basic housing costs and divided by gross income. The total monthly debt payments, including basic housing costs, should not exceed 43%.
When you determine the proportion of debt vs. income, you can quickly decide the price range and specifically look for properties that meet those criteria. The closer your search, the quicker and more efficiently you can use the search tool for properties and discover of the house of your dreams. A real estate lawyer in Jacksonville, FL can help you throughout the buying process.
Decide where you want to live – Location, location, location!
Real estate ads beachfront could be your first choice, but consider several factors before focusing exclusively on one area.
- Does the neighborhood you like have good schools?
- What are the values of the properties in that area?
- How is the traffic flow and how close is the block to shops, restaurants, major airports, medical care, etc.?
- Is the crime rate low in that neighborhood?
- What are the short and long term development plans in your selected area?
If you have found the perfect neighborhood, now begins the search for your home
Get a real estate agent who truly listen to your wishes and specifications and who would answer all your questions about real estate.
With the help of your selling agent, and based on the proportion of debt vs. income as described above to determine your price range.
Get a pre-qualification or pre-approval letter from a lender to maximize your options. Your lender will analyze your financial situation and let you know exactly how much you can borrow to finance your home purchase.
See and visit several houses within the scope of their price and talk to the agent about bidding when you find a property you like really.
When you have a decision which house to purchase, make an offer through your selling agent in Jacksonville, Fl.
Discuss with your real estate agent based on the best comparative values of the properties of the area and the state of the market in general.
Determine how much money you can put a down payment, bearing in mind that the higher your down payment is, the stronger your negotiating position will. Also, your monthly payment will be lower, and the interest rate will be better. Alternatively, if you give a smaller down payment, the leverage you applied to borrow money is higher, which over time can result in a better return on your money.
When the offer is accepted, sign a contract or negotiate back and forth if there is a counter offer. When you reached an agreed price, make a deposit.
Schedule the home inspection – this is a critical component of the process.
A buyer should always setup an appointment for a home inspection to identify potential defects thereof requiring repair or replacement in the immediate future.
A home inspection will make sure that you as a buyer, the property that you will receive is in expected conditions, resulting in peace of mind for the buyer.
Settle a closing date
An overview of fees
You initially need to pay the down payment which is the money that you are going to pay outright, and it is not covered in the amounts borrowed to finance the house and the selling price.
Closing costs, including the fees of the lender, broker fees real estate, fees for registering property, attorney fees, appraisal fees, title search, title company, insurance homeowner, charges of the homeowners association, study fees, city taxes and state.
In some cases, the seller may contribute to the buyer’s closing costs, if the appraised value permits. These costs vary from 3% to 7% of the transaction.