Whenever home buyers are looking to purchase a home, sticking to a particular budget is frequently very important. For those who are on a very strict budget, finding homes for sale located in Southwest Florida that are inexpensive can be a challenge but not impossible. That is why it is important to have the assistance of an experienced realtor to find the right home and guide you through the home buying process.
In Southwest Florida, the region is very desirable due to the climate, consistently warm temperatures, proximity to beaches, and other natural attractions. This means that demand for homes is pretty high, but the inventory of available houses is not always able to meet that demand. This can drive home prices skyhigh. However, it is still possible to find areas in Southwest Florida that have houses which are affordable for the average home buyer, if you know where and how to look.
Affordable Homes For Sale Located in Southwest Florida
If you are looking for a specific city in which to relocate in Southwest Florida, Fort Myers is an area that is perfect for both individuals and families hoping to enjoy the Southwest Floridian lifestyle. There is a very strong homeownership level (48.2%) and an average home value of approximately $251,562. It is a popular city, and the home values are on par with other popular cities around the country.
You will find a fairly educated population in Fort Myers with 29.4% of residents holding a college degree, and 41.1% of those are in the STEM fields. When you make an investment in a home in Fort Myers, you can rest assured that you will have knowledgeable neighbors with interests that may be similar to yours.
How to Buy Homes For Sale Located in Southwest Florida on a Budget
At Your Home Sold Guaranteed Realty of Greater Florida, our real estate team is well-aware that finding cheap homes for sale located in Southwest Florida can be a frustrating endeavor, especially if you are unsure of where to look or the steps to take first. To get you started in the right direction, we have assembled a list of top tips to make sure you set yourself up for success in the real estate industry.
Boost Your Credit Score
One of the most important factors that will be used to determine your interest rate on your mortgage (something that can drive your monthly mortgage payments quite high) is your credit score. In general, the bare minimum score for FHA loans is around 580, but a bare minimum is going to yield a rather high interest rate. The better your score, the lower your interest rate may be.
We recommend actively working to improve your score for months before you make the decision to buy a new home. First, make sure you run your free annual report and check it for any negative areas. If you know what is bringing your score down, you can work to improve it. Raising your credit score can result in drastic savings over the long haul.
Pay Down Your Debts
Another influencing factor on your interest rate is your debt-to-income ratio. Basically, the lender will take your total debt and divide it by your income. It’s a simple formula with potentially dramatic effects on your mortgage loan because lenders generally don’t want to give loans to high-risk individuals with lots of debts. It is important to pay down your debts (or raise your income) in order to have a better debt-to-income ratio which will result in a better interest rate.
Save for a Down Payment and Closing Costs
The age-old understanding about down payments is that you have to put 20% down on a new home in order to actually buy that house. This is not true. You can put that much down and it will eliminate the monthly private mortgage insurance (PMI) fee, but it is not absolutely necessary.
There are many programs for mortgage loans which do not require an excessive down payment. The most common down payment percentage for a single family home is about 3.5%, but you can also find programs (like the USDA loan) which require 0% down! It is important to discuss these options with your lender to find out what you might be eligible for.
You should also be aware that there will be closing costs that you need to pay for at the conclusion of the home buying process. Many people are not prepared for these costs and are surprised by them. Financial surprises are usually not welcome, so be sure to ask your lender exactly what closing costs you will need to pay and how much they will be in total.
Research Mortgage Brokers
Working with the right mortgage broker is just as important as choosing the best realtor to guide you through the process. You need a knowledgeable, experienced, and reliable broker you can work with throughout the process and will feel confident that the individual will get you to the closing table. One of the best ways to find the right broker is to ask your realtor.
It is especially important to find a great mortgage broker if this is your first time buying a home or have little experience with the process. Your broker will be essential to your success.
Apply for Mortgage Pre-Approval
Once you have found a broker you want to work with, you can then apply for mortgage pre-approval. This is an important step because it will tell you what your interest rate will probably end up being and how much you will be able to afford. After getting this approval, you can find a home that is within your budget, and remember, you do not have to spend the entire amount.
Mortgage pre-approval is also a great way to give you an advantage over the competition because your financing is in order and home sellers will not have to worry about any delays caused by your financing.
Choose a Specific Geographical Area That Meets Your Budgets
Whether you are very familiar with the area in which you are moving or have never been there, it is a good idea to do some research on the region and find out what parts of the city are within your budget.
If you want to live by the beach, you should be prepared for fairly high prices. Other parts of the city further from the beach may be less expensive. Finding the cheapest homes for sale located in Southwest Florida will take some time and patience. Working with a knowledgeable realtor can be very helpful in this endeavor.
Makes Two Lists: Needs and Wants
Another great way to reduce the prices of the homes you are looking at is to know what your absolute must-haves are and what your wants are. We recommend you make two lists: needs and wants.
Needs, obviously, are things that are absolutely essential to your survival in the house. Wants, on the other hand, are things that would be great to have but you can live without. For instance, you need a bedroom but you may want a bedroom with a walk-in closet and en suite bathroom. One is necessary for daily life while the other is simply convenient.
Work with an Experienced Realtor
When it comes to buying a home – a major financial investment – it is vital to work with an experienced and skilled real estate expert. Unless you have been through the process many times, it is advisable to have a professional to assist you and guide you through it. There are many factors to consider and things to keep in mind before the final closing day.
Many things can go wrong if you are not careful and diligent. Buying a home essentially becomes a full-time job until the sale is complete. You need someone whose time and expertise are dedicated to this endeavor so that you do not have to stress out about it. When you are looking for a cheap home for sale located in Southwest Florida, our team at Your Home Sold Guaranteed Realty of Greater Florida can help you with your search and ensure that you find real estate success.
Our Realtors Can Help You Buy a Cheap Home For Sale Located in Southwest Florida
Have you and your family decided to buy a home but are hoping to find an inexpensive house for sale located in Southwest Florida? Be sure you are working with the best realtors in the area – Your Home Sold Guaranteed Realty of Greater Florida. We have the experience, skills, and knowledge of the local real estate market to help you find that house and successfully make your investment.
At Your Home Sold Guaranteed Realty of Greater Florida, our team is 100% committed to making your home buying experience as positive and easy as possible. We are happy to offer you the information, resources, tools, and guidance you need to navigate the process and make your investment.
To get started on your journey to buying an inexpensive home for sale located in Southwest Florida, give us a call at 239-880-3563 or fill out the form below with the requested information. One of our dedicated realtors will send you a detailed response as soon as possible. We look forward to hearing from you and helping you begin your home buying experience.
