For the new Florida home buyer: How to get started
Buying a new home in Florida can be a wonderful experience, but also an overwhelming one. Should you buy an existing home or should you find a builder? How do you find a good realtor, and if you decide you want a custom home, how do you find a reputable builder? What sort of construction materials and features should you be looking for when buying a home in Florida? What about financing?
A new home buyer may ask themselves all of these questions and then some. The intention of this article is to educate the new Florida home buyer by answering a few of the most common questions new buyers have when buying a home in Florida.
Should I buy an existing home?
Like everything else, buying an existing home has its pros and cons. If you buy an existing home, you may be able to find a good deal in the current buyer’s market, and it takes less time to move into an existing home than it does to have one built. However, there are several things you need to watch out for. First, carefully consider the age of the home you are looking to purchase. Was it built before lead paint restrictions were put into place? Does it have an old (and often unsafe) furnace that will need to be removed? Does the home have solid electrical wiring and plumbing, or will you have to make expensive repairs?
Take advantage of the inspection process. Hire a quality inspector who will thoroughly inspect all major systems in the home, and who will be able to tell you more about the structural integrity of the home. Some homes are built below hurricane code, and if you are buying a new home in Florida, the last thing you want is a below-code home. The inspection process is crucial! You need to ask if there has been any termite damage, flood damage, wood rot, roof damage or leaks in the home.
A good realtor will help to guide you through this whole process, from finding the right home, to the inspection period, and through closing. That is why it is so important to research and interview different realtors. Select one you are comfortable working with, and who inspires your confidence.
What about buying a newly constructed or custom home?
If you purchase a newly constructed or custom home, there is no need to worry about termite infestation, wood rot, leaks or roof damage. Everything is new, so you know you will not have to pay for expensive repairs. You will, however, want to do your homework when it comes to choosing the builder who will be constructing your new home. Homes built by experienced, reputable builders are often more expensive, but quality construction is well worth the extra expense. Cheaper tract homes may be easier on the wallet initially, but in the Florida climate you will end up paying more for repairs in the long run if you buy a cheaply build home.
So what should you look for? First, obtain information about several area builders and do your research. Speak with representatives from each company. Ask about the types of materials they use. Do they build the walls and foundations with wood, concrete block, or solid poured concrete? Do they build their homes above hurricane code? If so, how far above code do they go? Find out about upgrade packages and whether it costs more for high quality materials and comfort upgrades. Look for a builder who has a good reputation and has been building within your chosen community or in nearby communities for more than just a couple of months. This is not the time to go with a fly by night operation in an attempt to save money. Ask for references and check them.
Then of course, there is the opportunity to customize that building a new home gives you. Take advantage of this and find a builder that offers as many floor plans and options as possible. That way, you will truly be able to design the home you have always wanted. You don’t have to live in someone else’s dream home; you can live in your own.
So I’ve found the perfect Florida home or want to have one built. Now what?
Now it’s time to explore your finance options. If you have the budget to pay for your new home with cash, that’s great. You will ultimately save money and you don’t have to worry about finding a lender. But since most buyers are not able to do this, they must obtain financing from a lender or their builder. If at all possible, you should try to obtain financing through a bank or mortgage specialist. Builder financing often comes at a higher cost to the home buyer due to higher fees and interest rates.
If you have several accounts through one bank, try speaking with a lending specialist at your local branch first. Often, banks will give the best loan packages to their multiple account holders. Or, research independent mortgage specialists who will shop around for the best loan to suit your needs. Be sure to carefully consider each type of loan to find the best terms for your individual situation. For example, a traditional 30-year fixed interest rate loan is appropriate for the home buyer who plans to stay in their home for many years. But if you are like average home buyer in Florida and only plan to stay in your home for five years or less, a variable interest or interest only loan may better serve your needs.
Do your homework
Be an educated buyer. Take the time to research and check references. Find the right professionals to guide you through your Florida home buying experience, ask plenty of questions, and stay involved throughout the process. The extra time and effort you put in can make all the difference in your Florida home buying experience, and ultimately, whether you find the home of your dreams or end up settling for less.
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