Taking the leap to buy your first home is as exciting as it is daunting. Purchasing property is a major decision that will have serious implications for your financial position over the long-term, so you want to be sure that you are making a sound investment and that your property transaction proceeds smoothly. In this article, our seasoned Coral Springs attorney shares his top five tips for first-time Florida homebuyers.
1. Assess your financial position
At the risk of stating the obvious, it is critical that you take an honest look at your finances before you begin looking for your home. Determine how much you’ll be able to put down as a deposit and what you can afford in monthly mortgage payments. You’ll also need to factor in the cost of monthly property taxes and home insurance.
It’s important to remember that the property transaction itself will involve several upfront expenses, including transfer tax, legal fees, closing costs, and title insurance – so be sure that your downpayment doesn’t totally wipe out your savings, as you’ll need to cover the costs of these expenses. Many Coral Springs attorneys are also affiliated with title insurance companies, making the process of securing title insurance much easier.
2. Explore your financing options
There are many home financing options to consider, and you should thoroughly explore those that are available to you before applying for a loan. Begin by researching federal and state home buying assistance programs, as there are a number of assistance programs intended to help first-time homebuyers enter the property market. If possible, obtain financing pre-approval from multiple lenders so that you can negotiate the best mortgage for your needs and budget. Keep in mind that, unless you obtain a mortgage with a fixed interest rate, your repayments could increase significantly if the Fed increases rates. The last thing you want is to have to rehire your Coral Springs attorney a few years down the line to assist you in foreclosure defense, so be sure to leave some leeway in your monthly budget in the event of interest hikes or salary changes.
3. Be patient in your property search
Purchasing a home is a life-changing decision that should not be rushed. Once you’ve determined your affordability, take time to research different areas and the average asking prices per square foot in each. Make sure you attend plenty of property viewings to get a feel for each area and determine what aesthetic most appeals to you. If you’re planning on starting a family, research schools, parks, and child-friendly activities in the area and get a sense of how family-oriented the neighborhood is. Whenever you attend an open house, don’t be afraid to ask the agent pointed questions about the property, its history, and the area. If you’re purchasing to renovate, it is a good idea to ask your builder to attend a viewing with you to get a sense of how costly your planned renovations will be.
4. Conduct a thorough inspection and title search
It is crucial that you confirm there are no major property defects – whether structural or legal – before you proceed with the transaction. The biggest risk that homebuyers face in a property transaction is that there is a defect in the property’s title. This is the main reason why it is vital that you hire an attorney when purchasing your new home: your attorney can conduct title searches. A title search ensures that the seller is the true and lawful owner of the property and that they have the legal right to sell it to you. A title search will also reveal any legal claims, municipal liens, or undisclosed mortgages over the property. Once a thorough title search has been conducted, you will have peace of mind that the sale will be legally valid and that nobody can challenge your ownership of the property down the line.
Typically, once your offer to purchase has been accepted by the seller, you will also have an opportunity to inspect the property for any defects. At this stage, the seller is also obliged to disclose any known issues with the property. At the very least, you should hire a home inspector to conduct an electrical, drywall, and pest inspection. Any structural, electrical, or other defects should be raised with the seller and the purchase price renegotiated.
5. Hire a reputable real estate attorney to represent you
The importance of hiring an experienced real estate attorney to represent you throughout the transaction cannot be overstated. Your attorney will play a pivotal role from start to finish.
- They will help you to think through important decisions relating to your property purchase, such as whether the property will be in your name only, whether the property will be registered as your homestead for tax purposes, and whether the HOA or COA (if applicable) is in good financial standing.
- They will draft and/or review all transaction documents to ensure that they are clearly worded and legally binding, and that your risk is mitigated and interests protected.
- They will represent you in negotiations over the purchase price and seller’s warranties, and provide you with invaluable legal advice should any complications – such as the discovery of a defect or breach by the seller – arise.
- They will advise you on the implications of your mortgage agreement and ensure you have a clear understanding of the breach clauses, amortization schedule, mortgage transaction costs, and other important details; and
- In some circumstances, Coral Springs attorneys representing the buyer will also act as the closing agent, and manage all the complex legal and administrative aspects of the closing process, including ensuring that title is timely and properly transferred into your name.
The best way to ensure that your first home-buying experience is low-stress and free of costly pitfalls is to hire a reputable real estate attorney to represent you. They’ll carefully guard your best interests at each stage of the transaction, strategically negotiating on your behalf and working with the seller’s attorney, lender’s representatives, the county recorder’s office, and other administrative officials to facilitate a smooth transaction.
An Experienced Coral Springs Attorney Ready to Represent You
Becoming a homeowner is a significant milestone worth celebrating. However, purchasing real estate is also likely to be the most complex and risky legal transaction you will enter into in your lifetime. With an experienced real estate attorney by your side, you’ll be able to navigate your first home-buying experience calmly and confidently, assured in the knowledge that they are looking out for your best interests.
At the Law Offices of Gary I. Handin, P.A., we have years of experience in real estate law and have represented countless first-time homebuyers purchasing their first property in Coral Springs. For complete peace of mind on your journey to homeownership, contact us today at 954-796-9600.