First time and prospective home buyers are often very excited to purchase their first home, and it is my job to make them comfortable during the often stressful process. Here’s my advice for first time home buyers:
1. Know your finances. How much do you want to spend per month on the property? How much do you have in the bank for a down payment? Do you know that you are going to need to have private mortgage insurance, which is going to make your monthly payment higher than if you put a larger down payment down? Do you know that it costs money to borrow money?
If you want to buy a property for $200,000, and have $10,000 in the bank, just know that there are ways to ask for the seller to pay for your closing costs, that could add up to another 2.5 or 3% of the purchase price.
2. Understand what it costs to buy a home. Expenses will be home inspection, appraisal, survey, mortgage costs, home insurance for the year up front. Deferred maintenance on homes is very important to know going in. How old is the roof, HVAC (A/C system), is the electrical panel outdated and not insurable, does the home have window protection for hurricanes. Know that big ticket items in homes are very expensive to fix, and you need to have money to purchase new upgrades for home, that are often unplanned.
3. Know how much down payment it will cost to buy a home. Know that your monthly mortgage payment will not go down, and every month you will be responsible for the payment.
4. Consider how long you’ll live there. I recommend that if you are buying a home, that you should expect to live there for at least 7 years. If not, maybe renting is a better idea for you, as when you sell a home, you are going to lose about 8% of the purchase price by paying Realtor commission and closing costs on the home.
If you’re ready to buy or sell a home near Delray Beach, Florida, call our Broker, Jeremy Olsher, at 561-400-3737. Jeremy has been a full-time licensed, realtor in South Florida for over 13 years. Since February 2005, Jeremy has worked through the challenges, changing market conditions, and ups and downs of the South Florida real estate market. He is happy to answer any questions you have, and help you get started!
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Jeremy Olsher is the Broker and Principal of Mizner Residential Realty. He has been a full-time licensed, realtor in Delray beach, Florida for fourteen years. Since February 2005, Jeremy has worked through the challenges, changing market conditions, and ups and downs of the South Florida real estate market.
- Jeremy Olsher, Broker - Mizner Residential Realty