Classic Home Buying Rules Make a Comeback

Despite the aftereffects caused by the fall of the Miami real estate market, there were a few good things that came out of it. Lenders that once approved irresponsible or unqualified borrowers are now taking a meticulous look at new applicants. This is something that should have been done from the beginning and it joins several other old rules that are “making a comeback”.

Be smart about the down payment. In other words find a “happy balance” between keeping money around for your everyday expenses and long term savings. If you can place a little more towards the down payment, you’ll have better financing terms, better equity and lower payments.

Borrow responsibly. A sterling credit history may earn you an approval for a sizable mortgage amount but it also means your monthly mortgage payments will be just as hefty and may prove difficult to pay off on top of your other monthly bills and such.

Plan to stay for a while. Purchasing Miami real estate now with the intention of selling in a short amount of time doesn’t make much sense, values and prices can still go either way. If you’re going to buy property, make sure you’re doing it with the intent of hanging onto it for a while.