One of the best parts about my job is that I get to help people purchase their home in paradise, especially when they are my friends.
Many people here in the Florida Keys rent their home because they think that they cannot afford or will not qualify for a mortgage or they are too intimidated by the process to try. Well I’m here to tell you that purchasing a home is more attainable than you think.
I have a friend that had been considering purchasing a home for about 4 years. The first two years were pretty casual but then after Hurricane Irma wreaked havoc on the Keys her search got a little more serious.
I happened upon a house that I just knew was for her. It checked all of her homeownership boxes so I sent her a text that said “I found your house…”. The next day we went to go see it in person and 6 weeks later my friend was a bonafide homeowner.
How did we do it? Dedication and diligence; we had a plan and executed it to the T.
Before this house came along we did our homework and sat down with a lender. Since this is often the scariest step for a potential buyer I went with her to the meeting and helped to guide the conversation so that everyone was on the same page and all of her questions were answered. My friend walked into that appointment thinking she wouldn’t qualify and then walked out of the meeting with a pre-qualification letter in hand for $500K.
Let the fun begin! Once we had the pre-qualification letter I knew where we needed to focus our search. We waited about a year and a half and sifted through listings in the $400-$500K range until 18 Riviera Drive hit the market. That was the house, I just knew it.
Since we had been working together for a bit I knew what the financial picture was and how much money my clients had to put down so we structured the contract so that the sellers also contributed to the closing costs and the buyers had minimal out of pocket expenses.
Let’s break this deal down by the numbers. Here’s a sample of what your out of pocket costs would be based on a $499,000 sale price and FHA financing with 3.5% down.
|Up Front Fees|
|Initial Escrow Deposit|
(within 3 days of acceptance )
|Home Inspection||$ 395.00|
|Insurance Mitigation Forms||$ 175.00|
|Flood Insurance Premium||$ 700.00|
|Total Up Front Fees Due||$ 2,270.00|
| Additional Escrow Deposit |
(due on day 11)
|Estimated Closing Costs||$10,000.00|
|3.5% Down Payment||$17,465.00|
|Less Escrow Deposits||$5,000.00|
|Total Amount Due @ Closing||$28,735.00|
|Less Seller Contribution||$7,485.00|
|Additional Funds Needed to Close||$ 21,250.00|
Wondering how to come up with $21,250 to close? Save for a year, take a look at your 401(k) / retirement accounts (you can borrow and avoid penalties when purchasing a home), maybe you have a family member that will gift you the money. The point is where there is a will there is a way and there are options if you have a plan.
Still aren’t convinced? Check out how much money the average Florida Keys resident is contributing to someone else’s bottom line over a 5 year period:
|x 12 Months Per Year||12|
|Total Rent per Year||$ 32,400.00|
|Total $ Spent over 5 Years||$ 162,000.00|
That’s $162,000 every 5 years that you are putting in someone else’s pocket. It’s time to make the investment in yourself and your future in the Florida Keys. I’m a full time Realtor in Key West and ready to help put you on a path to homeownership. Let me be your real estate”easy button”, contact me today 305-394-4073.