Question 1

What is a FICO score?

Accepted Answer

It's a grade from 300 to 850 that shows how well you pay your debts. The higher it is, the more banks trust you and the better the terms they give you. What matters most is paying on time and not using most of your credit card limits.

Question 2

What is an FHA loan?

Accepted Answer

It's a home loan backed by the federal government. It's easier to get: scores from 580 are accepted with just 3.5% down. In exchange, you pay extra insurance every month, and it's only for the home you'll live in.

Question 3

How much do I need for a down payment?

Accepted Answer

The down payment is the part of the price you pay; the bank lends you the rest. • FHA: 3.5% with a FICO of 580 or higher. • Some regular loans for first homes: from 3%. • VA loans, for military and veterans: 0%. • Example: on a $400,000 home, 3.5% is $14,000.

Question 4

What is PMI?

Accepted Answer

It's insurance you pay when you put down less than 20%. It protects the bank, not you, and it's added to your monthly payment. On regular loans it can be removed once you owe 80% or less of the home's value.

Question 5

How much are closing costs?

Accepted Answer

They're the paperwork and service costs at the end of the purchase, separate from the down payment. They're usually 2% to 5% of the price; on a $400,000 home, $8,000 to $20,000.

Question 6

What's the difference between pre-qualification and pre-approval?

Accepted Answer

With pre-qualification, the bank gives you an estimate based on what you tell it. With pre-approval, the bank actually checks your income and credit. A pre-approval makes your offer stronger with the seller.

Question 7

How long does it take to buy a home?

Accepted Answer

With a loan, it's usually 30 to 45 days from when the seller accepts your offer until you get the keys. Before that comes the search, which depends on you.

Question 8

How much does it cost to work with you?

Accepted Answer

Before we tour homes, we sign a written agreement that states what I charge. Often the seller helps pay it. We talk about it openly from the start.

Question 9

I have a 600 FICO score. Is that good?

Accepted Answer

It's enough for an FHA loan with 3.5% down, but your interest rate will be higher. Many Florida assistance programs require at least 640. Raising your score 40 to 80 points opens more doors and lowers your payment.

Question 10

How do I improve my credit?

Accepted Answer

• Pay everything on time. • Use less than 30% of your card limits. • Don't open new cards before buying. • Don't close your oldest accounts. • Check your reports for free at annualcreditreport.com and dispute any errors you find.

Question 11

How long does it take to improve my credit?

Accepted Answer

It depends: • Fixing an error usually takes 30 to 45 days. • If you lower your card balances, you'll see it in 1 or 2 months. • For a big improvement, expect 3 to 12 months. No one can guarantee a timeline.

Question 12

I had a bankruptcy or lost a home (foreclosure). Can I buy again?

Accepted Answer

Yes, but you have to wait. With FHA it's about 2 years after a bankruptcy and about 3 years after a foreclosure.

Question 13

I reported $20,000 on my taxes last year. Can I buy a home?

Accepted Answer

It's hard, but not impossible. Banks want your housing payment to stay at about a third or less of what you earn before taxes. With $20,000 a year, that's $500 to $700 a month, very little for Miami-Dade prices. Options: • Buy with another person (a co-borrower). • Show other income. • Use assistance programs. • Look for something more affordable.

Question 14

I'm self-employed. How do lenders qualify me?

Accepted Answer

Based on what you reported on your taxes for the last 2 years, after subtracting your business expenses. If you deduct a lot, the bank sees less income. Some loans use your bank statements instead of your taxes, but they charge more interest.

Question 15

Can I buy without a Social Security number?

Accepted Answer

Yes, some lenders offer loans with an ITIN. They usually require 10% to 20% down and charge more interest. I can connect you with one.

Question 16

It's my first home. Do I get any benefits?

Accepted Answer

Yes. For these programs, you count as a first-time buyer if you haven't owned the home you lived in during the last 3 years. In Florida there are: • FL Assist: up to $10,000 at 0% interest, repaid when you sell or refinance. • HFA PLUS: 3% to 5% of the loan, forgiven over 5 years. • Hometown Heroes: for certain professions; funds run out quickly. • City of Miami and county programs, based on your income. • Most require a FICO of 640 or higher.

Question 17

What is the homestead exemption?

Accepted Answer

If the home is where you live, up to $50,000 is taken off the value used to calculate your property taxes. Also, that value can't go up more than 3% a year. You apply with the Miami-Dade Property Appraiser by March 1.

Question 18

It's my second home. Does that make buying harder?

Accepted Answer

Not harder, but they ask for more: • From 10% down for a second home, and 15% to 25% if it's a rental. • You have to show you can pay for both homes. • First-home programs and FHA loans don't apply.

Question 19

What insurance do I need?

Accepted Answer

The lender requires homeowners insurance. If the home is in a flood zone, it also requires flood insurance. In Miami they can cost several thousand dollars a year, so get quotes before making an offer.

Question 20

What should I know before buying a condo?

Accepted Answer

In Florida, buildings now must do inspections and save money for major repairs. Some charge high extra fees (special assessments). We review the building's documents together before you sign.

Frequently Asked Questions

The basics

Credit

Income

First home

Second homes & Florida

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