Ready to make a home purchase in California? Here is some vital information you may want to know before applying for financing.

Florida Housing Market Stats

In the midst of the pandemic, out-of-state residents flocked to Florida in search of larger homes, affordable prices, and a higher quality of life.

This population growth has resulted in a boost in the state’s median sale price and demand for properties:

• Florida home values have grown by 34.3% over the last year and 51.8% over the previous two years.
• As of May 2022, the typical value of homes in Florida is $388,635 (Zillow Home Value Index).

Although prices have been increasing, sales and listings of Florida homes have slowed. The number of homes sold fell 9.16% and the number of homes for sale fell 8.7% year over year in May 2022.

The mortgage rates also have an effect on the purchases being made. The average 30-year interest rate increased to 5.25% from 3% in Florida within the past year, according to a May 19 report by mortgage buyer Freddie Mac.

All being said, Florida’s housing market is going strong and is predicted to continue to flourish in the long-term regardless of the short-term dips and rises, making any time still a good time to buy or sell a home in the state.

Pre-Approval Process

Once you know your home buying budget and you’ve decided what type of home loan will work for you, it’s now time to get your loan Pre-Approved.

Pulling together all the documents for a Pre-Approval can be time-consuming. But what you’ll get will be worth it. Along with the Pre-Approval Letter stating how much the lender is willing to lend you, you’ll also get a good idea of the interest rate, fees, and other costs associated with buying.

A Pre-Approval letter also shows sellers and real estate agents that you are a serious buyer who can get financing, which can give you a crucial edge over competing home shoppers. And no, it’s not the same as being Pre-Qualified, that’s just a rough estimate of what the lender might let you borrow.

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