4 Things You Should Know Before Buying a Home

Buying a home is the biggest and most important purchase that most people will make in their lives, so it is very important to be well informed before making a financial decision of such magnitude. When deciding to buy a home, you must first know where to start, here are 4 tips to help you get a better idea of ​​the first steps you should take. 1- Have cash available: Before you begin the search for a home in the market, you must be realistic in your purchasing power since you can not completely rely on the bank financing for the purchase of your home. The minimum down payment required can be between 3 and 3.5%, depending on the type of loan. In addition, there are multiple costs that must be taken into account such as closing costs, taxes, insurance, among others. In a market like South Florida it is recommended to have somewhere between 2-3% of the home's purchase price available for closing costs.

2- Pre-qualify

Knowing your budget is vital in any purchase, especially in your home. Most real estate agents can guide you to a bank that can provide you with a pre-qualification (usually free of charge). This pre-qualification will use your income, credit score, among other factors to provide you with the loan amount available to you. Based on this amount, you (with the help of your real estate agent) can begin the search for your home. This is the first step you must take as speed is key and good offers do not last long in an active market.

3- Have a plan

You must have your plan. Questions such as, "How long will I live in this house?", "How will traffic affect my trip to work? "," Do I plan to live on it or is it my plan to use it as an investment property? " These questions are of great importance since the search criteria of a property changes completely based on the purpose of using it.

4- Finding the Right Agent

The compensation of a real estate agent is the responsibility of the seller. This means that when buying a home, you as a buyer are not the one who pays for the service of a "realtor" so you can enjoy the benefits offered by a real estate professional at no cost. Like all business relationships, real estate agents come in different colors and are not all are the same. There are several factors that you should keep in mind before choosing a professional. It is advisable to:

- Find a realtor who works locally, with a personalized knowledge of your market.

- Who is up to date on market trends, ensuring that your property is valued appropriately.

-Who meets the expectations of you and your family.

- Who works full time in the field of real estate, making him or her accessible at all times of the day.

These are some of the essential things to keep in mind during the process of buying your home, which should be rewarding for you and your family if properly prepared.

If you are interested in obtaining a pre-loan qualification and know the budget that you can count on to purchase your home, fill out our prequalification form and we will help you take the first step.