Here are five (5) common pitfalls for homebuyers in Florida and why you should avoid making the same mistakes whether it's your first time to buy a home or not.
1. Looking at homes before getting pre-approved for a loan. Unless you're a cash-buyer, you need to get your financing in order first. The pre-approval process with a lender includes submitting documentation and a credit check which takes time. But once you get pre-approved for a loan, you can focus on viewing homes within your budget. You can be confident and act fast when it's time to make an offer - a strong offer at that because it comes with a pre-approval letter - to the seller.
2. Forgetting to save/budget for additional costs i.e. closing costs, moving expenses, and the like. Allocate savings to closing and moving costs on top of the downpayment (closing expenses could go as high as 5% of the purchase price) so you don't feel the pinch at the closing table, and plan your finances well beyond the monthly mortgage payment. The monthly mortgage payment which usually includes the actual mortgage plus insurance and property taxes - these tend to go up over time. Include HOA fees and assessments (if any), repairs and maintenance, and extra buffer to the monthly budget - these are costs of being a Florida homeowner.
3. Skipping the home inspection contingency. Waving it is a risky move and rarely a smart one. Home inspections protect the buyers and give them leverage during the inspection period especially in Florida when, for example, an "AS IS" contract is used - the buyer can inspect the property and cancel if the property's condition is not acceptable to the buyer.
4. Forgetting to check how the home's location can affect your lifestyle. Falling in love with the house but forgetting to check the neighborhood for noise, commute times, etc. Location is, obviously, the one thing that can't be changed. How not to regret the location? We suggest driving by at different times when able - morning, noon, night - imagine yourself living there. Check how long it takes you to go to work and back, how far is it from the stores, airport, the beach... Each neighborhood has its pros and cons, what matters is it offers the lifestyle that you want for you and your loved ones.
5. Buying big-ticket items before closing the deal. Your lender (and realtor) should instruct you not to apply for a new credit, change jobs, buy expensive items (i.e. new furniture) or any other acts that will change your finances until the deal is finally done. Why? Because the lender will do their final check right before closing and if your debt-to-income ratio changes or they see you don't have enough funds to close, your loan will definitely be affected... So keep your finances stable until closing day and the keys are in your hands. (Infographic from floridarealtors.org)
THINKING ABOUT BUYING A HOME IN SOUTH FLORIDA? We offer our clients first-class service through every step of finding and purchasing a home. Call or text us: 561-245-1710 / 954-592-4251. My name is Pierre and we are here to help. Pierre J. Denis is a Parkland Florida REALTOR® with over 20 years of experience helping clients in Broward County and Palm Beach County. Client Success Stories