Michael was a referred to us by multiple people when we moved to Delray Beach. He was beyond exceptional. At the time we had just moved to Florida aad were living with extended family. We had a strict deadline to be moved out (as my sister-in-law would be giving birth to her first baby). As first time home buyers, we did not know what to expect. Throughout the entire process he was thorough in providing us with detailed information regarding things such as value vs. cost when it came to the local and Florida Real Estate Market. At the end of the day Michael made it clear that his goal was to find us our first home no matter what it took. Once we closed, Michael gifted us a beautiful bottle of Champagne and we were able to move into our home before my sister-in-law had her baby! Highly, highly recommend using Michael as your next realtor- you won't regret it! 

- Gina-Marie Matey

Check your finances

When embarking on the journey to purchase a new home, ensuring the stability of your finances is paramount. Lenders, who play a pivotal role in financing your dream home, not only evaluate your current income through pay stubs but also scrutinize your income history to confirm its consistency. Equally significant is your credit score, as it directly influences the interest rate you'll secure. To assist you in this critical process, a range of mortgage calculators are at your disposal. These calculators offer a valuable estimate of your affordability by factoring in your chosen interest rate, down payment, and miscellaneous debts. By utilizing a mortgage calculator, you gain a clear perspective, safeguarding yourself from overextending your financial capabilities. 

Determine possible locations

Proactive planning can significantly streamline the homebuying process for you. Begin by creating a list of preferred neighborhoods where you'd be comfortable living. Distinguish between desirable features that you'd like to have but could do without versus non-negotiable must-have features. This thoughtful preparation will enable your agent to identify homes that align precisely with your requirements, saving valuable time and ensuring a more efficient home search. 

Get Pre-Approved

Your quest begins with the search for a lender who aligns with your financial goals and needs. Casting a wide net by considering multiple lenders is a smart approach. While each lender's inquiry might slightly affect your credit score, if these checks occur within a close timeframe, your credit should only incur one hit. Seek recommendations from friends and family to find a lender you can trust. 

• Conventional Loan: This is the most common choice for homebuyers. It typically requires a down payment, some as low as 3% of the purchase price.

• FHA Loan: The FHA loan offers more flexibility with credit score requirements and often allows for a down payment as low as 3.5%. It can be a viable option for those with less-than-perfect credit.

• VA Loan: Reserved for military service members, veterans, active-duty personnel, and qualifying spouses, the VA Loan stands out as a no-down-payment option backed by the Department of Veterans Affairs.

• USDA Loan: The USDA Loan is geographically specific, designed for homes in certain rural and suburban areas (approved areas may change). Eligibility criteria include meeting income requirements, but if approved, it typically requires no down payment.

Understanding these mortgage options empowers you to make informed decisions about the loan that best suits your financial situation. 

Start The Hunt

With your pre-approval in hand, it's time to dive into the exciting phase of house hunting. Collaborate closely with your realtor, clearly articulating your "must-haves" and top priorities to help them pinpoint the perfect home for you. 

Navigating the Offer

The offer stage can feel a bit like a friendly tennis match. You serve your offer, and the seller might volley back with a counteroffer. Negotiations can volley back and forth before an agreement is reached, or one party decides to step away. In most cases, when making an offer, include an earnest money deposit—a small sum, typically 1% - 2% of the purchase price. This deposit eventually contributes to your down payment and closing costs. Keep in mind that if you walk away from the deal, you may forfeit this deposit. It's wise to include a contingency based on a home inspection in your offer, giving you an exit strategy if significant issues arise that the seller refuses to address.

Thorough Home Inspection

While not always mandated by lenders, a home inspection is a prudent step. You'll need to arrange and cover the cost of a professional inspection. Scrutinize the inspection report meticulously. If significant problems surface, you can approach the seller for resolution. If an agreement can't be reached, it might be time to reconsider the purchase. Remember, once you close, maintenance responsibilities fall squarely on your shoulders.

Essential Home Appraisal

A home appraisal is a crucial safeguard. Just as with a home inspection, including a home appraisal contingency in your offer is advisable. Lenders require an appraisal to ensure they aren't lending more than the property's value.

The Final Check

With the labor-intensive phases completed and both parties in agreement, it's time for the final walkthrough. This last examination ensures the property is as expected and any agreed-upon repairs have been addressed.

The Grand Finale: Closing

Congratulations! You've reached the final step before receiving the keys to your new home. Prepare your checkbook for the closing costs and the agreed-upon down payment. Anticipate a pile of paperwork, including the loan agreement, proof of funds, and the signing of the mortgage note, sealing your commitment to repay the loan. And with that, you officially become proud homeowners.

For Further Assistance in Your Homebuying Journey in Palm Beach County, FL

To delve deeper into the process of buying a home in Palm Beach County, reach out to get in contact. Congratulations on your exciting new chapter!