Can I really afford to build a home in Southwest Florida? Whether you are starting out and thinking about home ownership for the first time or you have just relocated to our area, there are a few things you should know about what it takes to build a house in Southwest Florida.
Maybe you are getting ready to graduate from college; have just gotten married, or are recently divorced or relocated to our area…the first thing to consider is your credit score. There is a reason that there are so many services and apps which allow you to check your credit score and YES, it is VERY important!
I wish someone had told me early on in life how important a good credit score was and how it can literally open doors for you. Does it matter if you pay your credit card bill off every month? Does it really matter if you make your payment late, as long as you make it? The answer is a resounding yes. Everything you do, from how many credit cards you have to how many times to pay your bill late affects your credit negatively. So check your score, and if it is lower than 550, you need to do some damage control to improve your credit before thinking about buying a house.
A good credit score is like your “financial reputation” when it comes to borrowing money and purchasing things that require a down payment. The higher your score, the less money you will be required for a down payment and the higher your score combined with your income will determine your maximum loan amount. A good rule of thumb to remember is: better credit=better interest rate.
Generally, f your credit score is 600 or higher and you are making a combined income of $60,000, you afford to build a new home. However, remember that there are other ways to come up with a down payment such as gifts from generous family members or land sales which your builder can help you navigate.