Prices have fallen. Real estate prices have fallen on a lot of the inventory back to 2002 levels. You can even pick up a brand new house in a development for less than what others on the same block owe on their house. If you have the money, it’s a great time to get a piece of Florida, even waterfront. Realize your greatest savings on property insurance rates with a house built after 2003, the last big change in building codes. 

Mortgage requirements have tightened. If you have a credit score of 680 or better, 10 percent cash to put down and funds to cover the closing costs of 3-6 percent of the loan, you can get a mortgage. That’s a lot tighter than it used to be. If you’re credit score is under 600, forget it. If you don’t have cash to put down, you’ll have to wait. If you are self-employed, with “stated income” (you pay yourself), it’s very, very tough to get a mortgage. If the property will not be your primary residence, count on 20 percent or more to put down, along with those closing costs, and an income to show you really don’t need the loan anyway. Sellers will concede some cash toward closing costs, but even then, it’s tough. FHA loans only require 3 percent down, but you still have the closing costs and the seller’s contribution is limited. 

The programs that helped with down payments have been suspended because those who were paying into those programs, in many instances, have defaulted. Some conventional loan programs at banks and credit unions still offer down payment assistance if you are in education or law enforcement. 

You’ll pay at least $300-$500 a month on your mortgage for taxes and insurance. We have the opportunity to vote to cut taxes on Jan. 29 (early voting started Jan. 15), and I wholeheartedly encourage you to vote “yes” on the amendment. It should get every household in the area about $350 more in savings on homesteaded property right away, and it will help people move up to bigger homes or downsize to smaller homes without losing their Save Our Homes savings. The rest of that payment is for insurance, and the bigger the house, the more both taxes and insurance cost. Older homes cost more to insure. Homes west of US 19 in Pasco County require wind insurance and it’s expensive. Find out these things before you buy. 

Closing costs contain more than lender’s fees. Closing costs can include the cost of the service, appraisal, survey (if required), termite inspection usually, a fee to the title company and other stuff, depending on your mortgage. Find out about those ahead of time with your “good faith estimate” from your lender. You have to pay a year’s worth of insurance premiums (if you have a mortgage) up front. Property taxes are paid in arrears, so the seller will pay you on a daily-prorated basis for the time they have had the house, and then you will be responsible for the years worth of taxes. You can have that money paid through your mortgage payment, but it’s your responsibility to file for your homestead exemption. See that you do or you will be paying more taxes than you have to! There are other exemptions available for widows, widowers and disabled persons. Take advantage of the savings.

I consider it my job as a Realtor to navigate you through this process. It can get complicated, but we have the resources at hand. And the payoff, a home where you can put your family, your stuff and your equity, is an American’s greatest asset. 

Some caveats to consider:

Exercise caution and good financial judgment when buying real estate, choosing your mortgage type, and taking equity out of your home.

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