Buying A New Home? Here’s What You Need to Know About Mortgages


 

Who says millennials aren’t into buying new houses? First-time home buyers purchased 2.07 million houses for sale in 2017, a seven percent increase since 2016.

In fact, those first-time buyers who were buying new homes purchased 38 percent of all-single family homes in the United States.

For those buying new homes, there is no shortage of reasons to live in Florida. Between the copious amounts of sunshine, the miles and miles of beaches (1,200 miles and 1,800 miles of coastline) and no state income tax, America’s Sunshine State offers many opportunities for being new homes.

Florida’s total surface area is 65,755 square miles and 21.31 million people occupy the space that is the Sunshine State. Florida attracts more than 100 million visitors and Florida’s population grows by almost 1,000 people every single day. If that trend continues, Florida’s population could grow to as much as 26 million by 2030.

From condos to luxury oceanfront homes, there’s no shortage of options. In fact, there are 7.42 million homes and apartments available in Florida today, so there are plenty of new houses for sale.

But living in Florida doesn’t have to break the bank either. According to Neighborhood Scout, the median home value in Florida is $209,623. Only 1.5 percent of homes in Florida cost more than $1.42 million.

In spring 2017, approximately 9.26 million Americans said they own a second home. In addition, 42 percent of vacation home buyers plan on using their property for vacations or as a family retreat. What’s more, 36 percent of vacation buyers purchased property in a beach area.


Whether you’re interested in new houses for sale or purchasing a vacation home, here are some tips to keep in mind.

If you’re serious about moving to Florida or buying a home Florida this guide can help you understand what it takes to pull it off.

If you’re on the fence, it’s important to know the pros and cons of living in the Sunshine State.

Looking around at new houses for sale usually means getting a home loan as well and knowing what to do there is important. If you need a home loan, here are some basic rules to follow:

  • Know Your Credit Score: With online banking, it takes just a few minutes to pull up your credit score. This is very important if you’re aiming to get a home loan. Knowing your score can save you from surprises. The last thing you want to find out is that your score is lower than you thought. Having a low score or poor history can bring your plans for a home loan to a halt real quick.
  • Save Money: Most home loans require some sort of down payment, so not having cash on hand is another potential road block. Most lenders set their own requirements for a down payment, but keep in mind that the bigger the down payment you make, the more it’s going to help you.
  • Keep Working: Remaining employed during the loan process is critical. Quitting or job or getting fired from your job cuts you off from a much-need money source and employment changes can put yet another snag in the application process. A loan application is often approved based on whatever information you present at the time. Changes in employment will probably cause lenders to review your finances.
  • <Manage Debt: Having credit card debt won’t stop you from getting a home loan, but the less you have, the better your chances are. Paying off credit card debt could help your chances of securing a home loan. Don’t drive up your credit card debt during the application process or once you’ve been approved.
  • Budget: When it comes to home buying, it’s important to have a budget. Living in a large house is nice, but it won’t be that way for too long if you can’t afford it.


The bottom line comes down to this: if you’ve got financial troubles, deal with them and use it to motivate yourself toward your goal as you look at new houses for sale. Take time to find and improve your credit score and when applying for home loans, stick to a budget.

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