5 Lessons for First-Time Homebuyers from Commissioner Christine King’s Workshop

At Williams Park in Overtown, more than two dozen Miami residents gathered on a recent Saturday with one goal in mind: learning how to buy their first home. Led by real estate expert Danny Felton, the free workshop — hosted by Chairwoman and District 5 Commissioner Christine King — offered step-by-step guidance on how homeownership can turn into generational wealth.

Tamikia Jones, a participant who is 46 years old, said that she discovered that she may become a homeowner at her age. “Just because I’m single, I’m not married, I don’t have kids, I’m still able to get a piece of the pie of the American dream and become a homeowner,” she said. “I need to learn how to budget on going back to the grocery store and making meal plans and eating at home instead of eating out.” 

The full-day course was led by Felton, the National Association of Real Estate Brokers' first vice president. Miami Affordable Magazine spoke with Felton about the event's five key lessons for those who were unable to attend.

Homeownership is achievable for everyone in Miami

Many individuals believe they are priced out of buying a home in Miami, but all they need to do is look into the housing options available, because there are a number of down payment programs they may use to buy a house, Felton said.

This implies that individuals can buy a home, specifically one from the City of Miami, using a variety of programs. For instance, King's down payment housing program provides up to $250,000 for first responders and District 5 residents to purchase a property, contingent on their income. 

More information about King’s down payment program can be accessed here.

Check credit report regularly 

Because identity theft is one of the numerous items that might show up on a person's credit report that they may not be aware of, Felton advises individuals to check their credit report at least twice a year. A credit report is a person's financial management and spending history, he added.

Over the course of their lives, people can save a significant amount of money by maintaining a good credit history. An individual will pay a higher interest rate if their credit score is low. Additionally, individuals can learn how to use credit report companies to freeze their credit. When credit is frozen, no one can access it without the owner's consent.

Spend only 33% of your income on housing

Felton said people love hearing that they qualify for large sums of money to buy a new home. But before they commit to additional spending, they appear to forget about all the other expenses they have to pay, such as electricity bills, daycare costs, and auto insurance. He advises making a budget that will place the individual within the range of what they should spend on housing.

It is not practical for some people to spend more than half of their salary on housing. About 33%, or ⅓, of their monthly income should go toward housing costs, he stressed.

Get a home inspection before closing the deal 

Home insurance in Miami can be costly, Felton said. According to Great Florida Insurance, residents in inland places like Ocala may pay about $1,865 per year, while those in Miami can anticipate paying an average of $5,315 per year.  

He added consumers only frequently glance at newly remodeled homes, focusing on the exterior, without considering if the roof, plumbing, or electrical systems are modern. A home that is not upgraded may result in a higher insurance rate, he said.

Homeownership creates equity

In the Black community, being a homeowner is the largest source of wealth, Felton said, because the ability to own contributes to equity. Always aim to own rather than rent. The moment is now for first-time homebuyers to devote their time in considering home ownership. It's never too early or too late to purchase a property. 

The session takes place on the second Saturday of each month. Residents can register by calling 305-652-7616 to learn more about government subsidies, down payment aid, credit knowledge, money management, and house buying,

Saturday’s program was arranged in collaboration with Southeast Overtown/Park West Community Redevelopment Agency, King, NID Housing Counseling Agency, and Experts Resource Community Center.