Surprise your family with news of moving to Miami, and expect excitement in their response. Investing in Miami Real Estate will be the best decision you will ever make since this global city offers the most affordable real estate rates compared to other cities of its kind. For a first-timer, buying your first home can be overwhelming, but with home buying tips, you can easily navigate the process, avoid common mistakes, and save money.
The first step of your homeownership journey begins with getting pre-approved by a lender. Many lenders will work with your personal finances and current credit score to help better your chances of getting the right mortgage for you. Some mortgages require as little as 3% of the property’s value as a down payment. Note that the lesser the down payment, the higher the payment for mortgage insurance. You can confirm your down payment using this calculator to assist you to know the amount to save.
With an investing plan at hand, it’s time to explore your mortgage options. Luckily, you have several mortgage options, each with its pros and cons. A conventional mortgage is one of the options that conform to rules and standards set by government-sponsored firms Freddie Mac and Fannie Mae and accepts as little as a 3 percent down payment.
Federal Housing Administration (FHA) loans are insured by this governmental body and require down payments as low as 3.5 percent. The Department of Veterans Affairs (DVA) guarantees VA loans and sometimes require no down payment. The advantage of making a higher down payment for your house is paying a lower monthly mortgage payment.
Perform research on available local and state assistance programs for first-time homebuyers. Some programs offer down payment assistance, discounted interest rates, lower tax credit, and closing cost assistance to first-time home buyers. Check if your state offers home-buying assistance programs and boost your chances of owning a home in Miami.
You may also consider 401(k) Loans. Find out more on this article: Can you use your 401(k) to buy a house?
Before you start searching for your dream house, decide on your house’s price range to determine if you can safely afford to invest in Miami Real Estate. You should also check your credit since this score is a key factor in the approval of your mortgage loan. Your credit score also helps dictate loan terms and possibly your interest rate.
If you notice any errors that might drag your credit score down, dispute it to the relevant authorities. Improve your score by making payments to any outstanding debts and pay your bills on time. Unless necessary, avoid opening new credit accounts, such as auto loans, until your home loan’s closure.
Take your time and compare mortgage rates from different lenders. As the Consumer Financial Protection Bureau noted, comparing rates from different loan lenders can save approximately $3,500 in five years of your loan payment. As you shop around for the most affordable loan lender, ask the lenders if they allow buying discount points to enable you to prepay interest rate upfront for a lower loan interest rate.
Ensure that you are also working closely with a trusted and highly skilled real estate agent like AMG Realty. Our agents are knowledgeable about Miami Real Estate and the residential areas of your interest when you are shopping for a loan lender.
Let AMG Realty know your preference in the type of house, neighborhood, types of amenities, and your budget to make sure that the agent looks for the right houses per your needs. After learning the basics of navigating your home buying process, it’s time to know the financing options at your disposal.