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 Real Estate 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?
There are two ways to get a mortgage on a house 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 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 home buyer. 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 plan on joining the armed forces, it would be a good
idea to get your finances in order before you enlist. There are a few factors
to keep in mind when preparing yourself to join the military.
First of all, you'll want to make sure your legal records
(ie: criminal, emotional, financial, etc...) are in order. This includes things
such as making sure all of your school loans are paid off, having your previous
landlord references available, and making sure you don't have any outstanding
warrants for your arrest.
Once you've taken care of all of that, you will want to make
sure you have some money saved up for the future. This doesn't mean go blow it
all on riot gear and night vision goggles, but having a little nest egg saved
up for emergencies can never hurt.
One of the most important things to enlist is a trade. The
military offers enlistment bonuses for those who enlist in a high demand career
path.
The Armed Forces
Qualification Test (AFQT) covers six areas in which you can enlist with a
career in. These are:
1. Clermont - Programs that require those interested to
already have a high school diploma.
2. Electronics Commissioning Programs - Commissioning
programs for students who complete Electronics Training (CSAT).
3. Hospital Corps -
An enlisted program for students who complete the Medical Assistant Training
Program (CSC).
4. Designated Ground - Enlisted programs for students who
complete these programs: Air Force Food Service, Aviation Informatics, Boom Operator,
Diesel Mechanical, Flight Equipment, General Maintenance, Instrument Mechanic,
Munitions Systems, Parachute Racker, Satellite Communications Systems and Tool
and Supply.
5. Designated Aviation - Enlisted programs for students who
complete these programs: Airborne Communication, Aviation Maintenance,
Avionics, Helicopter Maintenance, and Pilot Trades. You can also be eligible
for the enlisted programs by being a student in one of these five programs and
having a strong grade point average.
6. Other Enlistment Programs - There are many other
enlistment programs besides the ones listed in AFQT. These include, but aren't
limited to Air Force Entertainment, Army Ranger, Military Police, and Navy
Seals. Many of these enlistment programs have strict qualifying factors that
must be achieved before one can enlist under them.
The other option you have is to enlist and then go to school
while in the service.
If you have any questions about the things you should know
before you buy a home, call our professional licensed real estate in SouthFlorida for more information and assistance in finding you. True Oak Realty
will help you! Call (954) 280-7778
