Are You In The Market For A New Home? We’ve Got First-Time Home Buyer Tips For You.
Congratulations! You are ready to take the next big step. Buying a home is a major financial decision and you will need all the first-time home buyer tips you can get. Here are a few to get you started.
- Check the surrounding area of your target home. Do not just look at the house itself. Check the neighborhood. If you can, chat with your potential neighbors. If you have school-age kids, check out nearby schools and district ratings. You can also drive around the area during peak traffic hours to get a feel of what your daily drive would be like. It is important to know your priorities so you’re clear on what you’re looking for.
- Check your credit score. Unless you are paying in cold cash, you will likely take out a mortgage loan. And your credit history will be a major factor in getting an approval. Now’s the time to double-check if there are any errors that could drag your score down. You should also hold off on getting a new credit card or taking out another loan.
- Know your limits. It is perfectly normal for first-time home buyers to get excited about all the nice things that want in their dream home. But at the end of the day, you must compromise based on what you can realistically afford. In case you are worried about missing potential expenses while making your budget, consult friends or family with home buying experience. Or better yet, seek professional help.
Financing Options And Resources For First-Time Home Buyers
Did you know that Florida has first-time home buyer programs?
The Florida Housing Finance Corp. or Florida Housing is an agency that helps Florida residents buy a home in a way that is easier and affordable, even with a competitive real estate market.
They have Homebuyers Programs which are 30-year fixed rate first mortgage loans for first-timers. They also have a Down Payment Assistance Program which comes in the form of a second mortgage. It is used with the first mortgage loan. They also have a Mortgage Certificate Program. This is a federal income tax credit that can be used with a first mortgage. The intent is to generate income for the borrower, which can be used for mortgage payments and other household expenses.
To qualify for Florida Housing’s first-time homebuyer benefits, your credit score must be 620 and the house you are buying should be your primary residence. Completing a 6 to 8-hour homebuyer education course is also required.
As a home buyer, your income must not exceed a certain threshold. But it depends on which county you live in and how big your household is. There is also a limit to the cost of the house, but this also varies by county.
What Types Of Homeowner Loans Are Available To You?
There are several but the most common are FHA loans. If your credit score is below 580, you will be required to provide a 10% down payment. If your score is 580 or higher, down payment starts at 3.5%. You will need mortgage insurance for the life of the loan.
VA loans are for those who have served or are serving in the military plus their spouses. This is processed through the Department of Veterans Affairs. USDA loans require no down payment if you live in a rural area. If your credit score is below 640, there will be extra requirements.
The Corcoran Connection Can Help You.
The Central Florida housing market is competitive. If you are first-time home buyer, you will find that it is easier with professional help. The Corcoran Connection is renowned for our honest, timely and adaptable service. Give us a call now and let’s get started on that dream home!