The Home Buying Process in Florida
Your quick guide to the process of buying a home in Florida…
The better you know how the home buying process works, the less risk involved, the more profitable the transaction will be, and the better the entire experience. So where do you start? How to you ensure a successful property purchase?
- LEARN
The more you know the better. Brush up on your knowledge of costs, local property values, the quirks of different types of properties, what you’ll need to get financing, and what to look for.
- GET QUALIFIED
Property sellers and experienced Realtors aren’t going to let you in to see properties, or spend much time talking to you unless you are armed with a mortgage loan pre-approval, or at least proof you’ve got the cash to make the purchase. So if you’ll need financing interview FL mortgage lenders and loan officers, and get pre-qualified.
- SEARCH
Once you know how much house you can afford – start shopping. Look online, drive neighborhoods, and interview local real estate agents. View your short list of homes.
- MAKE & NEGOTIATE YOUR OFFER
Once you’ve found the property you want, make a strong offer, quickly. Be ready to negotiate, and find a happy medium, that gives you sustainable housing payments and terms you can work with. This is also when you’ll make your earnest money deposit with the Florida title company handling the transaction.
- MORTGAGE APPLICATION & DUE DILIGENCE
Once you’ve got a signed real estate contract it’s time to make your official mortgage loan application with your lender if you’ll be using financing. This is also when the real due diligence begins. Appraisals, home inspections, and title searches all need to be ordered. Insurance estimates need to be requested, and application will need to be made to any condo or home owner associations involved.
- TRANSACTION MANAGEMENT
Hopefully you selected a good Realtor and mortgage loan officer who will take the lead in managing the transaction. Often they will help ordering the above items you need. Your title company may also be involved in working with associations, insurance, surveyors, and more. However, you need to be clear on who is handling what to avoid missing essential items, and confusion with vendors. All loan documents, insurances, and due diligence items must be sent to the lender as soon as possible in order to get underwriting conditions cleared and obtain the green light for funding.
- COORDINATING THE CLOSING
Real estate closings have become much simpler today. In some cases there may still be a physical closing at the title company offices if both parties are local. If they are not; remote closings or ‘mail-aways’ enable buyers and sellers to sing their documents and seal the deal remotely.
QUICK TIPS FOR A SMOOTH MOVE:
- Allow a time cushion in case of delays
- Get utilities transfers and connections set up early
- Book movers well in advance to ensure availability and the best deals
- For those with kids; make plenty of trips to get accustomed to the new neighborhood in advance, and make it fun so they are eagerly looking forward to the move
