What to Consider Before Buying Your Miami HomeAugust 30, 2012
While the idea of paying a mortgage is a whole lot more alluring than paying rent for something that’ll never be your own, there are numerous aspects to consider before buying any home in Miami. Plenty of folks interested in Miami Beach homes have taken the bold move of snapping up the first property they come across, but only find themselves in a world of financial trouble after the first few mortgage payments.
If you really want to determine whether or not you can afford to purchase a residence, as well as cope with the future payments, it’s important to define the actual property value of the dwelling you have your eye on. This is determined by comparing the prices of similar sized abodes sold in the past within the same neighborhood. Such information can easily be provided by any real estate agent.
Buyers should also review different mortgage types, and compare their required down payments to the cash they have at hand. The down payment can range anywhere from 3% to 20% of the property’s value. A lower initial payment may be secured with a higher private mortgage insurance policy, wherein payments start at $40 to $125 every month.
You should also factor other expenses involved, such as property taxes and closing costs, wherein the latter is inclusive of points (amount paid to the creditor for getting a lower interest rate on the loan), taxes, inspections, recording, title insurance, prepaid loan insurance and the financing costs from the mortgage lender.
In addition to the expenditures above, other factors which burn holes in the pocket need to be taken into consideration as well. Future homeowners should set aside funds for hiring a vehicle to transport furniture, plus other belongings from their old abode to the new dwelling.
Furthermore, if you decide to buy a home for sale in Miami which has been around for more than a decade, allotting funds for repairs plus maintenance will probably be necessary. Miami Beach homes are exposed to detrimental elements of the sea, so it’s possible they may need a larger fund allotted for renovations.