What You Need to Know Before Getting a Mortgage Loan in Florida

While owning a home is considered to be part of the goals of most generations, it hasn’t been easy for millennials and gen Z. But there have been solutions to this issue in recent years.

It’s all jokes and games when it comes to millennials and their goal-setting (getting a good job, owning a house, planning for the future). But jokes aside, this generation is still overcoming complex barriers when it comes to being homeowners. 

 

In Florida, there are many options that people can look more into to make the dream of owning a house a reality. The US Federal Housing Administration (FHA) offers a series of mortgages that people can qualify for, even if their credit score is low. 

 

But before getting into this, let’s explain the basic definitions. 

What’s a mortgage loan? 

According to Investopedia, a mortgage loan is “a document submitted to a lender when you apply for a mortgage to purchase real estate.” This document requires extensive information, including the property considered, financial situation (that’s why your credit score matters), employment history, and more. The lender uses the information to make their decision to approve the loan. 

Now, what if you’re not a US citizen? Believe it or not, if you’re a recent immigrant or you have a professional or education visa, you’re most likely to ask for a mortgage, but that comes with some extra steps. 

It depends on your residency status, which is divided into the following groups: 

    - Permanent residents with a green card 

    - Non-permanent resident with a valid visa 

    - “Foreign nationals” 

And that’s where the FHA steps in. Since they have relatively low credit score requirements, it’s one of the best options for non-US citizens. Besides providing information of a lender that fits their risk profile, people must also either show proof of permanent residency in the country or use the home as primary residence, add a valid social security number, and employment authorization documents. 

How do I know if I qualify for an FHA loan? 

This is the most affordable option if you’re a first-time homebuyer and if: 

    - You’re at least 18 years of age; 

    - You can show proof of income; 

    - You plan to live in the house as your primary residence; 

    - You have a debt-to-income ratio of less than 50%. 

Once you have all of these things in order, you’re ready to ask for a mortgage loan, and when you get approved, your homeowner dreams begin. 

Venezuelan Community in Miami

 

Arriving in Miami for the first time and hearing Spanish in every corner, one wonders if one is really in the United States, and quickly realizes why this city is considered the Hispanic capital of the country. And when visiting the city of El Doral, in Miami-Dade County, you might think you have entered Caracas, where arepas are sold everywhere and the Venezuelan flag is seen more than the American flag.

 

Venezuelans are the latest unstoppable wave of migration feeding Miami's melting pot of Latino cultures. According to the latest Democratic Vision Foundation study based on U.S. Census Bureau data, there are an estimated 200,000 in South Florida, half of which live all across the country.

 

Most have arrived in the last 10 years, pushed by the crisis of the government of Nicolás Maduro and his predecessor, Hugo Chávez. The number of immigrants went from 164,903 in 2005, to 418,366 in 2017, more than doubling (253%) in just over a decade.

 

"Around 19,000 Venezuelans live in Doral, 28% of the city's population, plus those we don't know about, because they have arrived recently and end up at an aunt's house, a relative, a friend...", says Alfredo Ortega, the Venezuelan head of the mayor's office, in a conversation with EL MUNDO.

 

Ortega highlights the significant increase in the number of his compatriots in recent months, and mentions the efforts made by the mayor's office to help the newcomers. They have given seminars and talks on immigration, and have a network of contacts that offer support, such as churches, state offices, and organizations.

Advantages of relying on the services of a real estate consultant

 

Have you thought about selling or maybe renting your property in Doral?

Many people want to sell or rent their properties in Doral, but they have a hard time figuring out the first step to make this happen. Having the help of a real estate consultant is essential to streamline all processes of buying and selling properties.

Why hire a real estate consultant?

1.    Expedite the buying and selling process

One of the advantages of having a real estate consultant is that he/she can help you in the whole buying and selling process. He/she knows all the procedures, what to do in certain circumstances and, above all, how to act in different scenarios. The real estate consultant is dedicated to your case and helps you in everything you need to expedite the buying and selling process.

2.    He/she offers you his/her experience and knowledge

In addition, real estate advisors have an experience that we do not have. They know the real estate market better than anyone else, they evaluate the type of property you are looking for and offer you the best options in the market.

3.    They manage a database of contacts and properties

Real estate consultants have an excellent database that can work for you when it comes to finding the property you are looking for. Their database contains clients, professional contacts, services, and more. With this database you will be able to get the property you are looking for faster.

4.    They have excellent negotiation skills

All real estate consultants have very good negotiation skills thanks to their experience in this market.

Having a real estate consultant will help you streamline all processes, get the property you are looking for much faster, and best of all, get a good deal, because they will always be protecting your interests. Don't wait any longer, hire your real estate consultant in Doral and get the property you are looking for!

What do you need to know for 2021? Some Real Estate Trends for this year

 

After a year complicated by the pandemic, 2021 presents us with many challenges. But how will the housing market perform in the current economic system? Here are some of the trends we believe will be present this year:

Trend No. 1: Few possibilities for homebuyers

There were not enough homes for sale during last year to meet buyer demand. The shortage of inventory means you need to be vigilant when looking for a home, as the best homes are likely to sell quickly.  In November 2020, more than 7 out of 10 homes sold had been on the market for less than a month –they sold very quickly.

If you want to find a good home in this scarce market, we recommend to:

1. Give up a few things you thought were a must-have for your dream home.

2. Broaden your search. Your dream home won't necessarily be in the location you think.

3. Get pre-approved.

Trend No. 2: Home prices continue to rise

In November 2020, existing home prices increased 15% compared to last year, reaching a national average of more than $300,000. If you are going to buy a home in Doral, in such an expensive market, you should consider how much you are willing to spend. Make a budget of what you can afford to spend and what you cannot.

We recommend:

- That your house payment does not imply more than 25% of your monthly salary.

-  To save at least 10-20% down payment.

- To choose a 15-year fixed-rate conventional mortgage.

Trend #3: Online real estate services are on the rise

Have you heard of real estate services like Zillow? These allow you to search or list homes for sale online.

What you do is tell companies like Zillow or Opendoor about the house you want to sell. They buy it from you, inject some money into it to resell it at a higher price, take care of all the paperwork for the house, and then charge you pretty much the same as an agent's commission for selling expenses.

Trend #4: Risky buying options are more affordable

Rent-to-own

First, if you're itching to buy a home but can't afford it yet, some sellers like Divvy offer a rent-to-own agreement.

The downside to rent-to-own is that if you later decide you don't want to buy the house or something breaks the contract, all those payments you made will have been a waste.

Whether you’re selling or buying, you can take advantage of the current trends by partnering with a professional real estate agent.

Moving and Pregnancy

 

Yes, you can! But here are some recommendations

Usually, moving implies work.

You have to organize what stays, what goes, what is needed, and when everything will be taken to the new home.

If, on top of that, you plan to move while pregnant, there are some things you need to take into consideration to carry out this process in the best way.

The house was too small for you and you need to move to a more spacious place to give the upcoming baby a more comfortable space. Here are some tips:

1.    Work hard on your well-being: it is important that despite all that moving implies, you remain calm and don’t let stress take hold of you.

2.    The perfect time to move: between the 16th and 20th week of pregnancy. It won't be the first three months of pregnancy that are much riskier for the baby, but it won't be the last, and it will give you time to buy the baby's room furniture, clothes, and organize the space in the best way.

3.  Always ask for help: if you are working and pregnant, and on top of that you are moving, you don't have to be a superwoman and be able to do everything, it is very important that you ask for all the help you can get to handle all the tasks you have to carry out.

4.    Plan the arrival of the baby with time and a lot of help: it is very important to plan and to be prepared. Being one step ahead of any event will help you be efficient in making decisions.

5.  Don't let the move take up 100% of your time: look for people who can help you organize and pack; you don't have to do everything yourself.

6.  Take care of yourself and you will take care of your baby: find a space to talk to someone, tell them how you feel, get to know you, share and prepare for the arrival of a new stage in your life. Switching homes will add stress, nerves and anxiety, so you must work on yourself and your emotions to be ready for everything.

A guide to emigrating with your school-age children and not dying in the attempt

 

Moving to another country is not an easy decision, especially if you have children. You will need to think about the aspects that can affect them in their routine, mainly because there will be an adjustment process for the whole family.

 

Although children can adjust to changes easier than adults, you should still anticipate and prepare to avoid complications.

 

Depending on your child's age, you need to know how the education system works. In the United States, according to its territorial political organization, each state has its own Department of Education, and schools depend on school districts. The schools in Doral depend on Miami-Dade County, being the 4th largest district in the country.

 

If you decide to enroll your children in public schools, they will be assigned to the school in the area where you live. And here comes another variable to consider: the place of residence. A fact to take into account is that the Florida Department of Education evaluates schools according to student performance, and the classification of schools uses letters, with A being the highest and F the lowest.

 

If you don't speak English, don't worry if your children haven't had contact with the language. There are ESOL (English for Speakers of Other Languages) education programs. These programs have been designed to train the student in the use and knowledge of the language.

Purchasing a property in Doral during the pandemic?

In a crisis, good investment opportunities always arise. Here are some reasons why investing in Doral is a good option.

Doral is one of the most prosperous cities within Miami-Dade County; being located so close to the port and Miami International Airport makes it attractive to hundreds of merchants and residents. Also, if you are a golf lover, this is the city for you! Doral is home to the Trump National Doral Miami, one of the best places to practice golf in United States.

In addition, investing during the pandemic can be very positive for the buyers, since they can further negotiate the price of the property they would like to acquire, thus having a capital gain in his/her favor.

Investing in Doral can be an excellent decision:

-       Due to its location: it is located 1 mile from Miami International Airport, 10 miles from the port of Miami, and is bordered by two of Miami Dade County's main highways.

-       For its business: it is one of the largest private free zones in the USA (Miami Free Zone).

-       For its educational institutions: it has over 10 category "A" public, charter and private schools, the highest rating given by the state of Florida. It has over 10 university institutes, universities, and technical schools.

-       For its life quality: it has 6 parks, 20 hotels, 2 shopping centers, business centers, a variety of restaurants, and much more!

What should you know about buying a house?

Buying a house is one of the biggest commitments anyone can make in their lifetime. Knowing which decisions to make –and understand the timing when to make them–, how to calculate taxes and more. Doral Riches can offer you the right solution. Just follow this advice.

1.    Find a trusted realtor: Not everyone wants to find a reliable realtor, but don’t close the door to that option. A smart realtor can help you protect your investment while he can help you find the best options based on what you’re looking for.

2.    Educate yourself: Remember that everybody will have an opinion, but at the end of the day, you make the final choice. That’s why you should read and ask experts about important topics: mortgages, taxes, market trends, contracts, and more.

3.    Know your neighbors: Know where you’re moving, what is close to, and even what type of people lives there. If you’re looking to expand your home, it might be important to take into consideration if more children live in the neighborhood, for example.

4.    Accept that renovations will take time: Now that you have a home, the excitement to decorate is huge. But decorations will take time. Take into consideration what needs to be done right away: bathrooms, kitchen, have basic furniture. Those marble pieces can wait for a while!

5.    Hidden costs: This is a topic that should be taken into thought. Buying a house is not limited to the cost of the house itself. It’s important to add maintenance cost, insurance, homeowner association fees, and more.

6.    Think about your future: Is the house you want now the house you’ll want in the next 5 years? Are you planning to get married? Have kids? The life you’re having now might not be the same one you’ll have in 2 years. If you’re still uncertain, then you should keep looking before committing.

7.    Consider renting as a test drive: If you still have any questions, then you could try renting in or near your desired area to test the waters before investing.

At the end of the day, we know that can be overwhelming to read and research about buying a home, but that time, investigation and most importantly money will be rewarded into precious memories. In Doral Riches, we have a team of professionals ready to guide you through the process of choosing and investing in a property. Contact us today!

The most common mistakes before investing in real estate

Real Estate is a field where preparation and research are required to make a successful deal. Doral Riches is a team of professionals, and during all our experience, we’ve taken some advice and tips regarding the Real Estate and Property business. Can you identify the most common mistakes?

1.    Start without a business plan: When you have a project in mind, sometimes the excitement takes over and you can make any type of mistakes. If you don’t present a short-term or long-term plan, you can appear unprofessional. It’s important to have your objectives clear, know your market and your audience, the investment needed to start your project, and the solutions to possible problems in the future.

2.    Not knowing your strengths and weaknesses: Analyze this internally: what skills should be improved or which ones should you use more? It’s important to work with the resources you have.

3.    Everyone has something new to bring to the table: If you think that everything is done and you have nothing new to propose, then you’re wrong. Even though it seems there’s a formula, trust your potential and your talents.

4.    Lower your prices: Some clients think that a business is completely negotiable if you lower your prices. While for some it’s the only solution, it’s smarter to find a differential in your business and offer the type of negotiation that doesn’t have a comparison.

5.    Procrastinate: Change your focus all the time, not doing everything on time. While it’s easy to move dates around when there’s so much going on, it’s important to set dates and times when an activity will start and end, since this leaves a good impression in customers.

Although doing business in Real Estate can be intimidating at first, by finding your own style and knowing your strengths you’ll have a great advantage. Doral Riches is here to help you during the process; all you have to do is contact us.