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Angel Benabe
Frequently asked questions
Buyers
Sellers
Buying a house in Florida is always a good investment because there is always demand for homes in the Sunshine State. People choose to move and retire to Florida because of:
- No state income tax
- Low cost of living
- Warmer temperatures and no snow
- Home prices in Florida that hold their value more than the national average
There’s no real requirements to buy a house in Florida other than to make sure you meet the following parameters:
- You want to have a credit score of 620 or higher to apply for a mortgage with a good interest rate.
- Find a realtor you can trust.
- Get mortgage pre-approval to make the process smoother.
- Draw up a valid contract with a real estate agent.
That depends on a number of factors, including the cost of the property and the type of mortgage you get. In general, you need to come up with enough money to cover three costs: earnest money - the deposit you make on the home when you submit your offer, to prove to the seller that you are serious about wanting to buy the house; the down payment, a percentage of the cost of the home that you must pay when you go to settlement; and closing costs, the costs associated with processing the paperwork to buy a house.
Earnest Money - When you make an offer on a home, your real estate broker will put your earnest money into an escrow account. If the offer is accepted, your earnest money will be applied to the down payment or closing costs. If your offer is not accepted, your money will be returned to you.
Down payment - The more money you can put into your down payment, the lower your mortgage payments will be. Some types of loans require 5-20% of the purchase price. That's why many first-time homebuyers turn to FHA for help. FHA loans require only 3.5% down
Closing costs - which you will pay at settlement - average 3-4% of the price of your home. These costs cover various fees your lender charges and other processing expenses. When you apply for your loan, your lender will give you an estimate of the closing costs, so you won't be caught by surprise.
There are several things you should consider:
1) Is the asking price in line with prices of similar homes in the area?
2) Is the home in good condition or will you have to spend a substantial amount of money making it the way you want? You probably want to get a professional home inspection before you make your offer. We can help you arrange one!
3) How long has the home been on the market? If it has been for sale for a while, the seller may be more eager to accept a lower offer.
4) How much mortgage will be required? Make sure you really can afford the offer you make.
5) How much do you really want the home? The closer you are to the asking price, the more likely your offer will be accepted. In some cases, you may even want to offer more than the asking price, if you know you are competing with others for the house.
The rates for homeowner's insurance in Florida are some of the highest in the Nation. It varies significantly from property to property.
Also the type of construction, shape of the roof, how the roof is secured, age of the home, value of the home, etc can all have a bearing on insurance costs.
An insurance agent can give you a quote based on the property address in about 30 minutes or less. We would be happy to give you a list of some great local real estate insurance agents that could give you a quote.
The first thing to do is call your family, friends, co-workers and tell them! Don’t forget to tell them about how awesome we are to work with!
The first person that will need to get started is your real estate lender. You would have already sent in some paperwork to get a pre-approval now you provide additional supporting documents. These documents normally include 2 years tax returns, 30 days of paystubs, and 2 months bank statements among other things. It is very important to get these documents to your lender quickly. After this information is sent in things will get quiet for a little while.
No need to panic! The underwriter will be reviewing these documents to come up with a conditional approval. A conditional approval means that you are approved but with conditions that need to be met before you are fully approved. Again, submit these documents as quickly as you can. There will be times of silence and that is not necessarily a bad thing, just part of the process.
For a cash transaction you can expect to wait a week or two until closing, Conventional loans should get accomplished in 30 days, and Government loan programs like FHA and USDA can be from 45-60 days, sometimes longer.
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