We have the following information as a guide to the procedures with purchasing a property in Florida. It is a realization of a dream for most people,and we hope to be able to help you through the whole process that you enjoy each and every stage, as well as benefits from the long-term relationship as we help you to look after your investment.
This will help to give you an understanding of cash requirements and the purchasing and mortgage requirements associated with a home in Florida, together with an estimate of the level of running costs and rental income that may be anticipated. This information must be considered as a guide only. While every care has been taken to ensure accuracy and the notes have been prepared from the best information available, individual circumstances may differ. Therefore, these notes should not be quoted as an authority.
We are happy to help to prepare you before your inspection trip by giving you as much information as possible, including mortgage application forms to prequalify in the comfort of your own home with all your necessary documentation at hand. We organize twice yearly Road Shows, as well as attending national overseas property exhibitions, when we can meet with you personally to talk through all your questions. We are also please to arrange either home or office visits at mutual convenient times, if preferable.
The inspection visit is the key to home purchase procedure. Whether you choose to make a dedicated viewing trip or to combine it with a family holiday, our colleagues will be only too happy to show you around and advice you according to your own individual requirements. If you would like to “Try before you buy”, we can arrange for you to stay in a property similar to what you would like to buy. We would advise that you itemize your particular requirements and priorities prior to your visit,so that your time in Florida is profitable and enjoyably, by not looking at too much and therefore making final decision difficult.
If you wish to purchase property in Florida with a mortgage, we will introduce you to a reliable mortgage broker, who will be happy to discuss all aspects of a mortgage. To ensure that any mortgage application can be dealt with promptly, the form can be filled in prior to your visit, so you may be pre qualified without being tied to any particular property.
To reserve a home or home site, a holding deposit of approximately $3,000.00- $5,000.00 will be required, which will hold the property whilst a client withdraws the full-down payment from current investments or whilst a mortgage application is considered.
On a new property payment of the holding deposit will also enable a client to discuss the design of the home with the developer including any customization of the standard model which may be required.
The client will also be able to select the color of various aspects of the home and to choose furniture and housewares packages.
Finally, during a visit, we can also arrange for you to open a U.S bank account, which will be needed for mortgage repayments and running costs of the home. Any rental income from the property will also be paid into this account. A client should plan to pay in at least $100.00 when opening this account. If you wish to pay sufficient funds to cover the full down-payment (less holding deposit),the closing costs and prepayments at this stage,it is a good idea to do so, as it avoids the necessity to later transfer (but it is not essential).
Unless you have pre-qualified for your mortgage, the mortgage application will not be cleared until after you return to the UK. However, this will usually take 4-6 weeks before mortgage approval is forwarded for acceptance. When you sign this approval,”exchange of contract” stage has been reached. At this time, you will be required to transfer sufficient funds to meet the full-down payment (minimum cash equity of 20%) less holding deposit, to the U.S bank account, if this was not done at the time the account was opened. The prepayment and closing costs payment are made at the time of conveyance,i.e. when the ownership of the property is transferred into your name.
The procedure for purchasing a home without a mortgage is very similar. The holding deposit will still apply, but closing costs are reduced and there is no requirement for prepayments. The full cost of the purchase will be made in a payment schedule agreed between the vendor and the purchaser. If a home is to be built, the payment schedule can include stage payments made in accordance with building progress.