It is no secret that in South Florida rents are so high, that it is very difficult to find a home and that the requirements for renting are so many that sometimes it is not worthwhile to spend so much work so that it is not even a house of your own. In addition, that monthly money that goes to rent is as if the wind, because it goes directly to the bank account of the landlord. If you have already absorbed all of the above, you are prepared to buy a house even those Treasure Coast homes for sale, at least mentally.
If you are going to buy a house in Florida, follow these tips:
This is one of the most important purchases of his life. Do not postpone and prepare early. But with a real estate market favorable to the owner in which the average price of the home exceeds $ 300,000, and with such strict rules of the banks to grant mortgage loans, this dream is increasingly difficult to achieve. The process was very complex because of the “volatility” of the market.
In fact, there is little room for rebates and that the process is more like an “auction” because as soon as a property comes out to the market, several offers come. Banks are like an Inquisition, they look for where each dollar that you put in your account comes from.
The competition is hard
The South Florida market has a particularity that exacerbates the situation of high house prices and difficulties in obtaining loans. With the income of people in Miami, everyone ‘qualifies’ for the same prices of $ 200,000 to $ 300,000, that’s why the fight is for the same market. They are also qualified in dealing with Miami FL homes for sale.
The median income in Miami-Dade is $ 52,300, according to April figures from the County’s page on public housing and community development, so most buyers are looking for a home of around $ 250,000. The question is where to find them. Most of the time, the search for properties is perceived as very difficult because the expectations of the buyers are not realistic. But all people have the right to obtain a free annual report on the status of their credit, from the three fundamental companies that report to the credit bureau.
Each lender has its requirements
Each lender will have their requirements, but it is considered a good credit score (FICO) after 700. However, a FICO of 640 may be enough to get a credit, according to some lenders. If there is something to fix in the credit, you must do it with time, to prepare for the mortgage. The demands of banks for loans should be seen as something that protects the buyer from taking the wrong step.
Although the average buyer feels cheated of not meeting the requirements for the loan, this situation is not for life, and it saves the headache of entering into a financial commitment for which he was not prepared. On the other hand, he points out that if the person considers that he is ready, he should not wait any longer to buy because the interest rates may continue to rise. Buyers can’t rest on their laurels, because as interest rates go up, houses will be more expensive, and this is the time to buy.
How to prepare to be a good buyer?
We recommend talking with the lender about the required documents, but, in general, these are the main ones: the tax return of the last three years of the people who are going to ask for the loan; proof of the salary you receive from your employer (pay stub) and reports from bank accounts. With this information and your credit report, the lender can give you an estimate of the amount of money they will lend you and at what interest. This is a good opportunity to ask for a pre-qualification letter or pre-approval letter (preapproval letter), which indicates how much money you are willing to pay.
