Searching and finding your next home is always a big task, and ensuring you’re making any offers with the confidence of knowing you have a solid financial situation is a large part of the equation. Let’s make getting your finances in order a little easier by looking at 5 ways to cut costs when buying a house in Miami.
Clean up Your Credit
The first step to getting your credit in spectacular shape is ordering your free annual credit report.
Once the report arrives, investigate every detail in it thoroughly to discover any potential errors and take an inventory of any outstanding debts – even those about which you may have forgotten over the years. You can then dispute any errors on the report with the corresponding credit agency while making a plan to pay down your debts, starting with the oldest debts first.
The goal isn’t to completely eliminate any and all debt, but to get it under control so you look better to mortgage lenders.
Find Your Agent
It’s always helpful to have a qualified and experienced real estate professional on your side when buying a house in Miami.
They have the local market knowledge and negotiation expertise to take the pressure off when things could otherwise get heated, and direct you toward properties that both fit your budget and your needs. You’re likely to find that the percentage they take in commission is minuscule relative to the money and headaches they can save you through negotiations.
However, we do recommend that you shop around to find the agent that works best for you.
Look At Your Mortgage Options
Just like looking into the agent that is the best fit for you, not all mortgage lenders are created equal.
Whichever lender you choose, let the details of their proposed loan terms be your guide. Keep an eye on estimated interest rates, repayment terms, and inquire at your county’s Federal Housing Administration office about qualifying for any federal assistance programs. USDA and VA loans both provide some unique opportunities for qualifying individuals that could ease the purchase of a home and make it cost substantially less in the long run.
Always make sure you fully understand your obligations when taking out a loan and ask any questions you may have before signing any paperwork.
Timing Can Be Key
It should come as no surprise that spring and summer are the most popular months of the year when buying a house in Miami, although this can vary somewhat.
Nobody wants to have to move in the middle of a snowy winter, but taking on the additional burden could mean paying way less for the home. Give yourself what you feel is a reasonable timeline to accomplish your home-buying goal, and don’t be afraid to extend things out to allow yourself more time to save.
The more finances at your disposal, the more tools are available to you in securing further financing and negotiating with the seller.
Down payments can seem complicated, but the easiest way for you to look at it is that you want to put down at least twenty percent of the agreed purchase price of a home.
The reason for this is to avoid paying Private Mortgage Insurance, or PMI. This is an extra cost a lender tacks onto your monthly payments until you have paid off the twenty percent. Make no mistake, PMI is not there to benefit the borrower in any way; PMI exists to cover the lender in the event the borrower fails to make their payments.
Do yourself a favor and try to look at homes which you know you can make that minimum twenty percent down payment.
Professional Help Buying a House in Miami
If you’re looking for an experienced team to help you when buying a house in Miami, contact us today at 706.870.1496!