Florida has its own set of prime real estate. The entire process of securing property in your name can take some time. The price of a property is directly dependent on the location, the type of home and the buyer’s credit score. Additionally the credit score can influence the down payment which can fall anywhere in the range of 3 to 20 percent.
If you are wondering how much money you will need to be the proud owner of a house in Florida, this article will help you out. In this article, we will mention the different factors which lead to ownership of a property. All of these factors will also influence the price of a house.
Start Saving for a Down Payment
Based on the general estimates of down payment and Florida, one can start saving for it. It can easily be less than 20% of the actual price but it depends on the credit score of an individual. Down payment is paid when the deal is closed and the rest of the money is paid by the lender from whom you are taking a loan for the mortgage.
It is easy to pay in installments as that money is far more convenient to collect over time. However, any money lender will expect the buyer to have the down payment in their hand at the time of finalizing the purchase. Typically, you can expect to have a down payment of at least 71000 dollars. This is the approximate value of 20% of the purchase price. The purchase price falls at somewhere near 356,000 dollars.
The initial down payment is steep but there are options to lower the payable amount. Both VA and FHA loans are available from the government that reduce some of the amount that one needs to pay as down payment. Even if you choose not to go with these options and choose conventional loans, they can lower the down payment to about 3 to 5 percent.
Even though lowering the down payment reduces the amount of money you will have to pay initially, there are some drawbacks. For conventional loans, it will lead to a high monthly interest. There are mortgage insurance policies that you need to take up which will add to the costs as well. There are down payment assistance programs specially catering to buyers in Florida.
Location Impacts the Price
The location of the house directly impacts how much it will cost. The right location can be chosen on the basis of your budget and the general facilities. Apart from the local amenities one should also see the market trends. Looking at both the neighborhood and the asking price is a good activity to negotiate the correct purchase price.
One should only consider looking at the location when they get preapproved for a mortgage. A pre-approved mortgage gives you enough leverage to negotiate contracts and close the process faster. The real estate agent will help in navigating the entire process so they need to be chosen appropriately.
The agent will be able to answer all the questions about different neighborhoods and the prices to be expected there. A negotiating strategy can be easily formulated if you find the right agent with whom you can communicate well. Buying a House in Florida is dependent on multiple factors one of which include the locality where the house is.
The Amenities and Must Haves
When you begin with the house hunt, there are certain factors which are non negotiable. As a buyer you need to sort your priorities to decide everything which is important and all the things that can be sacrificed. The amenities and permissions will impact the price and raise them to a great degree. If you can compromise on certain factors, you can easily find a house in Florida within your budget.
To simplify the matter, one can easily make a list of everything that is a must have in the house. Looking at the housing inventory will also give a fair idea of how much it will be priced. The most listings in Florida are seen during spring followed by summer, and winter respectively. Do not go house hunting during fall because the listings are the lowest then. Only after looking through all of the amenities and facilities should one make an offer.
Once someone becomes familiar with the property they are more educated to negotiate the price and offer a fair deal to the owner. Negotiation does not mean that the price should be lowered to a ridiculous extent. As a buyer offers on incentive to the seller so that they prefer you for the deal. Also, move fast so that no one has another hand before the purchase is finalized.
What Would The Price Include?
The price does not only include the down payment as we have mentioned before. It also includes other factors that will add to the cost of the entire deal. Title and escrow charges, lender fees, pest inspection fees, commission for the agent, prepaid costs and certifications expenses are also included.
If we take the closing costs as a percentage value of the closing costs, we can safely say that each buyer pays somewhere in between 3 to 5 percent. This falls in the range of about 10-18,000 dollars. Add the down payment to it and it will fall just below the benchmark of 100 grand. So while the price can be paid by the lender, the money to be paid as the down payment will still be a significant challenge to collect before considering making an offer.
The Takeaway
The payment needs to be done right for securing the deal for a home in Florida. The down payment can be anywhere in the range of 3-20 percent so there is price fluctuation with money to be saved. The down payment for a house in Florida is dependent on the type of loan an individual is able to secure.
