Buying your first home is exciting, but it can also feel overwhelming if you don’t know what to expect. The good news is that with a little preparation, you can navigate the process with confidence. Here are five things every first-time homebuyer on the Space Coast should know before starting their search.
1. You Don’t Need a 20% Down Payment
One of the biggest myths in real estate is that you need to save up 20% of the home’s purchase price before you can buy. While a larger down payment can lower your monthly payment, there are plenty of loan programs that require far less. FHA loans start at just 3.5% down, conventional loans can go as low as 3%, and if you’re a veteran or active duty military, VA loans require zero down payment.
There are also down payment assistance programs available in Florida that can help cover your upfront costs. A good mortgage broker will walk you through all of your options so you can find the best fit for your budget.
2. Get Pre-Approved Before You Start Shopping
Before you fall in love with a home online, get pre-approved for a mortgage. Pre-approval tells you exactly how much you can afford, and it shows sellers that you’re a serious buyer. In a competitive market like Brevard County, having a pre-approval letter can make the difference between getting your offer accepted or losing out to another buyer.
The pre-approval process is typically quick, often completed within 24 hours, and it’s free with no obligation.
3. Work with a Local Agent Who Knows the Area
The Space Coast real estate market has its own unique characteristics. From waterfront properties in Indialantic to family-friendly neighborhoods in Palm Bay, each area offers something different. Working with a local real estate agent who knows Brevard County inside and out can save you time and help you find hidden gems that might not show up in your online search.
A local agent also understands the nuances of the market, including which neighborhoods are appreciating, where new construction is happening, and what a fair offer looks like in each area.
4. Factor in All the Costs, Not Just the Purchase Price
The sticker price of a home isn’t the only expense you’ll face. Closing costs typically run between 2% and 5% of the loan amount and can include appraisal fees, title insurance, lender fees, and prepaid items like homeowner’s insurance and property taxes.
You’ll also want to budget for a home inspection, which usually costs between $300 and $500 but can save you thousands by uncovering potential issues before you close. Your mortgage broker and real estate agent should give you a clear breakdown of expected costs upfront so there are no surprises.
5. Having Your Mortgage Broker and Agent on the Same Team Helps
When your mortgage broker and real estate agent communicate well, the entire process runs more smoothly. Timelines stay on track, paperwork gets handled faster, and you spend less time playing phone tag between two different offices.
That’s one of the advantages of working with a team like The House Hunters Group, where the mortgage broker and the real estate agent are literally under the same roof. Coordination is built in, which means fewer delays and less stress for you.
Ready to Take the First Step?
If you’re thinking about buying your first home on the Space Coast, start with a free, no-obligation pre-approval. Contact The House Hunters Group today, or call Jesse directly at 321-501-9579.