Buying Your Home - What You Can Afford - Location - Etc.
How much does my real estate agent need to know?
Real estate agents, SUCH AS MEMBERS OF THE DAVID TEAM will say, "that the more you tell us the better we can negotiate on your behalf ". As a transaction agent, we have the legal responsibility to provide you limited confidentiality, in addition to other legal obligations. There is NO dual agency allowed as a matter of law in Florida in a residential transaction. The seller pays the commission to the Broker, who lists the property. The listing Broker pays a portion of the listed commission to the selling Broker. As provided for in the MLS or in a separate written agreement. YOU, being the potential Buyer, work with us, Florida licensed agents, who will represent you and your family's, best interests that you have disclosed to us.
Ask us to explain real estate agency and representation in more detail to you. You always have the right and option in a Florida real estate transaction to retain the services of a licensed attorney.
How much will I, as the buyer, spend on maintenance expenses?
Experts generally agree that you can plan on annually spending, or placing ONE percent of the purchase price of your home on maintaining, repairing, appliances, roof, HVAC, as well as a myriad of other maintenance chores, including landscaping care, that come's with the privilege of home ownership. Ask us about CDD fees, HOA fees, real estate taxes and insurance costs.
What is the standard debt-to-income ratio for financing?
While requirements will depend on the loan program, a standard "first ratio" used by lenders limits the qualifying mortgage payment (typically Principal and Interest - PI) to a budget amount of the borrower's gross income. In addition to the "first ratio", a "second ratio" of PITI and all other payments on existing debts and obligations (such as vehicle payments, student loans, credit cards, etc.) You should consider setting a budget and be pre-qualified, with a mortgage lender, before viewing properties. We can and will assist.
What can I afford?
The price of a home you can afford will generally depend on the following six factors:
1. Your household gross income.
2. The amount of cash you have available for the down payment, and prepaid items, (these funds can come from savings, certain insurance policies, 401K retirement accounts, gift funds, various state and federal programs, etc.)
3. Your outstanding debts and obligations, including student loans.
4. Your credit history.
5. The type of mortgage you select. Self Employed or time on existing and related positions.
6. And of course current interest rates, as well as market trends in your selected area.
Ask us to go into more personal detail with you and your family. We will keep this information confidential. We do represent your best interests. You make all decisions.
Where do I get information on housing market stats? Ask us and use one of our web sites.
How long do bankruptcies and foreclosures stay on a credit report?
Bankruptcies and foreclosures can remain on a credit report for one, three, seven years, and even up to ten years. This depends on many factors. Some home mortgage programs allow for a ONE year or less of waiting time for new financing. The circumstances or hardships surrounding a bankruptcy, foreclosure, or short sale will influence a lender's decision. Note all mortgage lenders operate under the exact same mortgage overlays. Our mortgage sources will provide you detailed information on your specific set of circumstances. Ask us.
A purchase of a home is one, if not the largest financial decisions you will make. A purchase requires research, thought, time, trust and effort. LET THE DAVID TEAM ASSIST.