First Time Home Buying

Real Estate Broker/Owner with

As the country’s recession continues, the prices for Miami Beach condos and mortgage rates continue to drop. In some cases sellers are desperate to find a buyer, making them much more susceptible to entertaining these so-called “lowball offers”. Let’s go back to basics and explore some initial questions first time buyers may have when considering something like Miami Beach condos.

Speaking of this lowball offer, many buyers of Miami Beach condos wonder whether there’s a certain amount they can offer for a condo that’s considerably lower than the asking price. These days it’s quite possible to have a seller agree on a price that’s up to 35 percent lower than the sticker price since it’s already hard enough to find buyers in the first place. Before making any offer, check the prices for neighboring property.

Mortgages come in either fixed rate or adjustable. You may be inclined to stay away from adjustable rate mortgages (ARMs) at all costs due to the bad rep they’ve received but if you’re willing to deal with payments that could significantly increase, the rates are often lower for ARMs. Fixed rate mortgages are the safest since your payments will always remain the same but lenders will usually charge higher rates.

Since prices for Miami Beach condos can in some cases be quite steep, a higher price will require more initial finds out of your pocket. First time buyers should always put down at least a twenty percent down payment plus about four percent of what the closing costs based on the price. Always remember that the higher the down payment the lower the monthly payments will be.

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