Expenses Associated with Buying a Waterfront Home in Florida

Nothing says "Florida Lifestyle" like a waterfront home.  Whether you are looking for lakefront, canal or right on the Gulf of Mexico, there are buying expenses that are specific to waterfront homes that you may not be aware of.  We sell a lot of homes on the water in our area and nothing is more frustrating than finding a great home that you love and learning that you may not have the resources for unexpected "up-front" expenses.  

Starting with your mortgage lender, you will want to know exactly how much home you can purchase and what your monthly allowance is for taxes and insurance. Your mortgage lender determines this based on income and debt to income ratio.  Let your mortgage professional know that you want to purchase a waterfront home so they can properly calculate your monthly affordability. Let's say you get pre-approved for your mortgage and don't tell your lender you are looking for waterfront homes,  you may be pre-approved for the purchase price but that does not necessarily mean you can afford the expense of the flood insurance or higher taxes. You may find that you spend money on inspections and other items only to not get the loan or the house.

What Expenses Should You be Aware of:
In Florida, the Buyer is responsible for obtaining an elevation certificate on the property.  This elevation survey will give the insurance people what they need to provide an accurate insurance quote.  This survey can coast anywhere from $350 - $900 depending on the size of the home and land. 

Flood Insurance. Your homeowners policy will cover the home and personal items but you will need to carry a flood policy as well. Your flood policy cost will increase your monthly payment if your taxes and insurance are escrowed by your mortgage lender.  You may also be required to pay up to 6 months of escrow reserves to cover the taxes and insurance.  This is something you will need to discuss with your mortgage lender so you have a clear picture of your pre-paid expenses and closing costs.  To get started on your mortgage approval process visit Express Mortgage Lenders website.

Home Inspection, Seawall Inspection, Wood Destroying Organism Inspection are other expenses you may have.