Looking for the Perfect Home?
Purchasing a home is not as simple as some might imagine. When you purchase a car or a boat you look at the current styles and models and select the dealership, apply for financing and off you go! A home purchase is a little more intensive and requires a lot of preparation and teamwork.
Here’s some things to consider:
- Financing Pre-approvals-
- Most sellers require that prospective buyers submit a letter from a lender stating that the buyer is pre-approved for financing for the amount of the offer. If you are buying with cash, most sellers require a bank statement or letter from your bank stating that you have access to the funds needed to close the deal.
- Location- Finding the right home in the right neighborhood takes time and diligence. While you can move a car or a boat from one place to another, homes are pretty well going to stay where they are. Other considerations are the location of the home and your work commute, available services in the area such as shopping, schools, entertainment, etc.
- Condition- Is the condition of the home acceptable? Are you willing or able to make the repairs or modifications to the home to make it work? Does it need a new roof? A new air conditioning system? Do the bathrooms or kitchen need major overhauls? How much will that cost?
- Making an offer- An offer is just an offer, until it is accepted; then it becomes a contract. Read the complete contract and ask questions if you don’t understand something. An offer will include such items as the purchase price, the closing date, the inspection period, the financing time limits and other contingencies along with what happens if there is a disagreement or one party wants to pull out, etc. Don’t wait till there is a problem to start reading the contract.
- Negotiating the deal- Once an offer is made, there is usually some back and forth between the buyer and the seller to arrive at a deal that both parties can agree to. Your My Florida Escape Team Leader will present the offer, address any questions with the seller or other agent and follow your instructions to work out an agreement.
- Inspections- For a single family home in Florida, you can expect the following inspections to be recommended or required: Home Inspection, 4 Point Insurance Inspection, Wind Mitigation (Insurance) inspection and a termite inspection. The best money you will spend in your home purchase is in having a professional home inspection performed by a licensed and experienced home inspector. The old adage about “you get what you pay for” is true in this case. A home inspector that does 500 inspections in a year will have much more experience and know how to recognize and identify problem areas more accurately than a company that only does 50-100.
- Financing- Find and work with a reputable lender. Your My Florida Escape Team will be able to refer you to a lender that is buth reputable and dependable and has a good track record in delivering what they promise. A good lender can save you hours of stress and frustration and make the transaction run smoothly and close on-time. Make sure to respond as soon as possible to any requests for documents made by the loan processor to keep your loan and closing date on target.
- Closing- Once all the contingencies are removed and the financing is in place your transaction will move to closing. Most closings occur either at the title company or at the real estate office. In some cases, as buyer or seller may have an attorney conduct the closing. Also, becoming more popular with out-of-town buyers are mail-away closings. In Florida, all funds are disbursed at the closing table, which may be different from other states. Your funds to close (down payment, insurance and tax escrows and other closing costs will be required to be wired to the title company. Once all the monies are collected, the signatures are penned and the lender funds are released, you get the keys and you own your new home!