Many people enjoy the thought of not paying rent and buying a house for sale in Coral Gables. Paying a mortgage which leads to home ownership has huge benefits. However, it is important to calculate all the costs involved to determine whether or not you can afford a home in this area. Here are some of the costs that you may have not considered before when buying a new home:
– Possibility of depreciation
– Homeowners insurance
– Closing costs
– Purchasing major appliances
– Moving costs
– Pool maintenance
– Furnishings and design
In addition to these costs, you should also remember that you no longer have a landlord to call on for fixing these problems like a leaky faucet or broken air conditioner. If you are want to buy a house for sale that is an older home, you may encounter costly repairs such as replacing the windows or a roof.
Here are steps to get an idea on whether you are financially capable to buy a home in Coral Gables FL:
- Calculate the property value. Compare prices for homes that recently sold for a similar size in the same area. By comparing prices, you can easily get an idea of what houses are going for in that particular neighborhood. You can ask your real estate agent for this information before attempting to buy a house for sale.
- Review the different types of mortgage loans. It is important to compare the money you have available with the required down payment amounts to determine if you can afford a particular loan that suits you. Down payments typically range from 3% – 20% of the property value. You should also factor in private mortgage insurance that allows lenders to recover financial losses in case the borrower fails to repay the loan in full. If you can afford to make a higher down payment, then you will have more options as far as what types of loans are available for you.
- Find out the estimated closing costs. Closing costs can add up to 2% – 7% of the property value depending on interest rate of the loan, inspections, taxes, recording, title insurance, prepaid loan interest, title insurance, among others. When you apply for a mortgage, you will receive an estimate of these costs from the lender.
- Once you have the closing costs and down payment requirements, and them together to determine the amount of money you need right now to cover everything.
- Consider moving costs and think about whether you will need to rent a truck or hire a moving company. Either one of these choices will cost money. If you have a lot of possessions to move, then you can expect to pay more money.
- Many lenders will include property taxes which are paid in conjunction with the monthly mortgage payment. Make sure to check if property taxes are included so that you do not get any surprises at the end of the year.
- Budget for maintenance, repairs, insurance, and unforeseen expenses.
- Crunch the numbers.
These are just a few tips to help you decide if you can afford to buy a house for sale in Coral Gables. Since there are several properties and home options to choose from, it is a good idea to consult with an experienced real estate agent who is trained in helping homebuyers choose affordable options. Contact us today so we can show you the most affordable homes that fit within your budget.