I guess it’s the case of good news and bad news that has some home buyers confused in Florida. Here’s what I mean. Mortgage rates are at an all time low. That’s really no secret. Home prices in general are also at an all time low. We know that banks have pulled back on the purse strings and qualifying for a mortgage these days is much more difficult. That’s the bad news. With that being said… there also seems to be the illusion that we are just giving away homes down here in Florida. Nothing could be further from the truth!
Now there are deals to be had… don’t get me wrong. And, it doesn’t hurt to ask if you can have that half a million dollar water front home for $75,000. The point I’m trying to make is this. You need to have realistic expectations and the advice of professionals before buying. Since 2005 when the home prices peaked, we have seen about a 40% fall in property values. Now that same half a million dollar water front home is on the market for about $300,000 and not budging!
So, if you can’t just pay cash for a new home, here’s probably the most important thing I can tell you. Have your money straight! That means you’re going to have to have a good credit score – 660 or higher. It also means you’re prepared to put 20% down and you have all the necessary documents that the bank will need. You’ll need to verify everything, it’s that simple. Gone are the days of looking at the mortgage like an after-thought. Gone are the days of making an offer with a deposit and then finding the mortgage. Get use to the idea of seeing your money guy first. Find out what you can afford. Find out what the new bank guidelines are. Because, going to an agent first to make offers could end up costing you your deposit! That would not be good. The first question from a good Real Estate Agent will be… Do you have your money straight?