Here's a few things to know about buying
real estate in South Florida. This will help you get started.
-
Talk to a mortgage broker now. He or she
will help you figure out the maximum price that you can afford. You can
also try a home buyer's calculator at sites like
www.eloan.com. However, don't
start making mortgage applications all over the place, as it will show
up in your credit report. Banks like to see your credit report have a
modest amount of credit inquiries.
-
In order to buy a home, you'll need to
have a certain amount of available cash to help pay for a down payment,
closing costs, and other expenses. Here's a rough idea of the cash that
you will need:
-
10-20% of the purchase price of the home
as a down payment. 20% is preferred, and you will find that banks
will love you! It may also help you get a lower interest rate.
-
1.5% of your mortgage (loan) amount as
closing costs
-
2 months worth of living expenses to
remain in the bank (the bank will want you to have some left over cash
for emergencies.)
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You should have good to excellent credit
to qualify for a mortgage. If your credit is poor, you may have a hard
time finding a bank or mortgage company that will offer you a mortgage.
Even if you don't have perfect credit, there are mortgage brokers that
can help you.
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If you have never bought real estate
before, you can take money out of your IRA without a penalty! Check
with the IRS for more information.
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As a homeowner, the interest you pay on
your mortgage interest and real estate taxes is tax deductible. If you
set up your W-4 forms properly with your employer, you can start to see
more cash in each paycheck as a direct result of having additional
deductions. How much extra? Well, as a general rule of thumb, add your
mortgage payment to your monthly real estate tax payment and multiply by
your IRS tax rate. That's a rough idea of how much extra cash you will
see.
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