Tips for Buyers in Florida

1. Determine Your Finances

It's common sense that you need to fully understand your budget and financial situation before you buy a home in Florida. This isn't unique to Florida, either — it's just a fact of making a purchase as big as a new house!

Specifically, you should consider:

• Credit score: Chances are you'll need a credit score of at least 620 to get a conventional mortgage loan. Higher is obviously better.
• Down payment: Determine how much money you can spend upfront on the house. For most loans, you'll need a down payment of anywhere between 10% and 20%.
• Closing costs: These are the final costs and fees associated with buying a new home. In Florida they typically total 2% to 5% of the purchase price — so a $200,000 home would be between $4,000 and $10,000.
• Extra homeownership costs: Also known as maintenance costs, estimate about 1% of the home's value each year. Once you know these numbers, you can set a realistic price range and avoid wasting time on homes that are too expensive.

2. Get Pre-Approval for the Mortgage

Once you've saved up enough money and worked out your finances, it's time to get pre-approved for a mortgage — unless you're buying with cash.

Getting a mortgage pre-approval is an important part of buying a Florida home, as many sellers won't even show you a house unless you have a pre-approval letter. A pre-approval letter is usually valid for 90 days and indicates that the bank expects you to qualify for the loan.

A few things to keep in mind about mortgages:

• Interest rates: Lower is usually better, as it can save you thousands of dollars over the years. The better your credit score, the lower your rate.
• The down payment required: Some loans require high down payments, while others can go as low as 5% (especially for first-time homebuyers).
• Terms: Most mortgages come with 15-year or 30-year terms. Longer mortgages take longer to pay off, but you'll pay less per month.

3. Pick a Great Neighborhood

Once your budget is set, the next step is deciding where exactly you want to live — starting with the city, then narrowing down to a specific neighborhood.

The neighborhood matters a great deal, both for your enjoyment of the home and for potential future profits if you decide to sell.

Your neighborhood can affect:

• The local events or lifestyle available to you
• Your home value, as described above
• Neighbors and whether or not they'll be annoying
• What preventative measures you may need to take for crime

4. Choose a Florida Real Estate Agent

While you can buy a house in Florida on your own, it's best to work with a professional who specializes in the local market. Your agent can find and show you new houses and recommend lenders, lawyers and escrow companies.

When you select a real estate agent, look for:

• A good number of years of experience, usually at least two to five.
• Realtor review sites to see how other clients rate their services.
• How many transactions they made in the last year — more transactions usually mean a more successful agent.

5. Begin Searching for Your Home

Once everything is in place, you can finally start looking at houses. This is likely the most time-consuming part of the process, so don't rush — view as many homes as you need until you find the right one.

With thousands of homes on the market, it helps to separate "must-haves" from "nice-to-haves." If you have a hard time finding a home that works, consider whether building might cost less.

6. Submit Offers

Once you've found a Florida house you really love, the next step is to make an offer. A few things to keep in mind:

• It's important to move fast — most Florida homes only spend about 90 days on the market before a reasonable offer is made.
• Don't always default to a higher price. Sometimes covering things like closing costs makes your offer more attractive without raising the price.

7. Do Appraisals and Inspections

Even after your offer is accepted, get inspections and an appraisal to make sure everything is in order. A licensed home inspector should check the roof, electrical, HVAC and plumbing — and a professional appraisal confirms the home is worth your offer.

8. Final Checks and Closing Agreements

If you've made it this far, you're almost there. Do a final walkthrough and test all the appliances, then complete the closing with your real estate agent and attorney present to make sure the paperwork is in order.

All in all, buying a home in Florida isn't too complicated if you think through each step and prioritize what you really need. If you have any questions, we're always here to help.