When people in Florida go to purchase a new home, figuring out their potential closing costs can help them make better decisions about how much they can afford to spend overall. In many cases, closing costs can be higher than people expect, especially for first-time or inexperienced home buyers and sellers. This means that it can be particularly important for people to know what to expect before they need to put down the money to cover these costs and finalize their transaction.
Prospective home buyers are normally encouraged to save up to 20 percent of the anticipated purchase price for their residential property. However, not having the 20 percent saved doesn't necessarily preclude anyone from being able to move forward with homeownership in Florida.
Millennials in Florida and throughout the nation spent more time either renting or living with their parents while recovering from the Great Recession. Therefore, some have decided to skip the starter home phase and move right into their forever homes. One man's first home purchase was a 2,700 square foot home that cost $360,000 in Long Island. As a general rule, a starter home costs about $150,000 on the low end and usually has one or two bedrooms.
Florida residents who are thinking about buying a home may want to consider doing so relatively soon. Although home price appreciation is expected to slow in the next two years, mortgage rates are expected to hit 5.1 percent by the last quarter of 2019, according to a forecast by Freddie Mac. Home appreciation is forecast to go from roughly 7 percent annually today to about 4.3 percent annually by 2020.
Although foreclosed homes in Florida have prices comparable to regular home listings these days, real estate investors and home buyers still might find opportunities in these distressed properties. The foreclosure process has three stages, and each stage influences the buying process.