If you’re a first time, second or serial home buyer, there are some basic items you will need to make sure you’ve considered. Buying a home is one of the largest financial decisions that you can make in your lifetime. It’s important to be informed so that you’re educated about what you are getting into before you commit to buying a home. We think the following tips will help you get started, be informed and make the process easier for you.
1. How are you paying for the property?
If you’re a cash buyer, skip to #3. If you’re not, you’ll want to read on. First, you should find out what your credit score is as it’s one of the largest components of whether you will get a loan and what the terms will be. It’s easy to get a credit score online, if it’s lower than 700, you can still get a loan but the higher your credit score, the better your terms will be. A good score means a low interest rate and that can save you thousands of dollars over the life of the loan.
2. Get preapproved prior to looking at ANY homes.
Getting preapproved is crucial… it will determine how much home you can buy and will let you know what your anticipated monthly expenditure will be for the mortgage. Your lender will issue a preapproval letter that we will submit with your offer to the sellers. With the lenders we use, sellers and their agents are comfortable with those lenders and your offer will be considered. With a preapproval in hand, you should be able to get a loan as long as your finances and credit score remain the same or improve.
Sellers want to know that if they accept your offer that there won’t be an issue later in the process. There is a difference between preapproval and prequalification (the amount of review by the lender). To get preapproved requires the lender to verify your income, employment and credit which means it’s a stronger verification of your ability to purchase a Naples home.
3. What are the expenses to know about?
When you purchase a home there are more expenses above and beyond the mortgage. If you’re getting a mortgage, there will be expenses associated with the lender; if you’re paying cash, that’s not an issue. However you should be aware of the insurance, budget for repairs; as well there will be property taxes and might be association fees that you have to budget for as well. A lot of Naples Florida homes are in homeowners associations and there are fees that can range from $100 per year to tens of thousands a year. It’s also important to have some savings to cover any unexpected expenses (like water heaters, landscaping, appliance repairs, roofs, etc.).
4. Home, condo, or townhouse?
In order for us to find your perfect home, you will need to decide what type of home you’d like to live in. Consider your lifestyle, toys, amenities that are important to you and how you plan on living in the home to make that decision. Condos are more restrictive than single family homes but there’s less maintenance as the association takes care of the common amenities and the exterior which can be ideal for buyers who don’t have a lot of time for home maintenance.
A home is a commitment. You’ll most likely live there for several years. It’s important to look for a property that meets your needs and lifestyle. More space is not always better, it costs more to have more space whether that is inside or outside. Your location may end up being more important to you than your physical home so make sure you’re focused not just on the home but also the area and surroundings.
5. Work with a Full Time, Knowledgeable Realtor.
Every neighborhood is unique and may have amenities that another doesn’t. We’ve been Naples residents since 1995 and have been in almost every neighborhood so we can advise you as to the benefits of just about every location. We stay informed about the market, know what homes are worth and can keep you from overpaying for a property. Local agents, local knowledge, full time service, optimal results!
6. Don’t Buy More than You’re Comfortable With.
You may be qualified for a lot more money but that doesn’t mean that you have to spend that amount. Our goal is to get you the most home for the least amount of money. There are always additional expenses and we want to make sure that you’re comfortable with the price point, payments and expenses so that you don’t get in trouble financially later on.
7. Look Past the Current Owners and Their Stuff.
When you’re viewing homes most of the time they will have the current owner’s belongings and memorabilia. That’s just a distraction and not something to focus on; if you can see past their items to the real potential and layout of the home, you may be able to purchase a home that others aren’t able to visualize and end up with an outstanding deal.
8. Have a Home Inspection.
This is a huge investment so make sure that it’s everything you think it is or should be by having a home inspection. We have home inspectors we’ve worked with in the past who are great or you can find a home inspector that is a part of the American Society of Home Inspectors.
9. Understand any HOA that you will be joining.
In Naples Florida a large number of homes are part of a homeowner association and all attached or semi-detached homes like condos, townhouses and villas also have HOAs. Membership is mandatory if you live in the neighborhood and you will be required to pay dues, maintain your property in a certain manner and rely on the HOA for other items like the upkeep of common areas. They all have rules, regulations and restrictions that you should make sure you’re comfortable with following.
10. Additional Inspections to Consider
Mold and radon are two add on inspections that you can have during your home inspection period. Mold can be the cause of health and respiratory issues and can be fixed if found. Radon is invisible and odorless but can cause lung cancer. That too can be remediated by a professional but should be one of the inspections that you have when you’re purchasing a home.
11. Don’t Make Any Major Financial Changes.
When the bank preapproved you, it was based on the information that you gave when you applied. If you change jobs, take out a car loan or make major purchases on your credit card that can affect your ability to get a loan and therefore a home. If there’s a change that you’re contemplating during the process, call your loan officer and make sure that it won’t affect your loan approval BEFORE you make the change.
These are just some of the great guidelines to assist you with purchasing a home in Naples Florida or Southwest Florida. We’d be happy to help you purchase your first, second or tenth home here and our promise to you is that we will work diligently to help you achieve your real estate goals. Give us a call when you’re ready at 239.293.0246.
