Common Questions to Buying a Home

• Prospective home owners should always begin by saving money. It is never too early to begin saving money. You will need it for the down payment, earnest money, appraisal, home inspection and closing costs.
• Know your credit score.
• Contact a lender and see if you can get pre-qualified for a loan. This will help you determine what price range to look in as it will pre-determine the amount a lender is willing to loan you.
• Have an idea of what you are looking for and begin to narrow down your search. Know the number of bedrooms, the number of bathrooms you need and other space requirements. From there it helps to determine what are of Palm Beach County you are interested in: Jupiter, Palm Beach Gardens, Tequesta, North Palm and determine if you want to be east or west of I-95.

The first thing you must understand is your budget. Consider your monthly income, monthly bills, and monthly expenditures – this will help to determine the price range you can look in. Remember you will not only be responsible for paying principle and interest, but taxes and insurance and often in Palm Beach County some form of home owners association dues or flood insurance. For the down payment you will need to save anywhere between three percent and twenty percent depending on the type of loan.

Ultimately buying a home helps to establish you in the community. You are able to develop relationships and long lasting roots in the area. Eventually when the loan is paid off you then have a place to comfortably retire in or leave behind to loved ones. As you make your down payment and monthly payments you are building equity in your home. Therefore, if you ever plan to sell you are able to get your money back, especially in the Palm Beach County area where demand is most often greater than supply. Also, you can make this home yours and make any changes you would like; which is not often common in rentals.

With the numerous options available for home owner financing it is very important to understand where you stand financial and your specific needs and wants, both now and in the future. How stable are your finances? Do you expect your finances to change in the next few years? Are you open to a 15 or a 30 year loan? Understanding your needs and finances and being able to accurately predict future needs and financial status will help you and your loan officer accurately select a mortgage loan that is appropriate for your goals.

Always do your research and due diligence when planning to make an offer on a home. It is important to work closely with your agent to compare the previous sale prices of comparable homes. Analyze the market in the area, highlighting the home owners motivation and desire to sell. With data from recently sold homes in the area you can accurately determine an appropriate offer to make. Make sure it is a price you are comfortable with as well. Generally, home owners list their price above market value knowing they will be negotiating throughout the course of the selling process. Be prepared to negotiate and present and accept counter offers.