The Buying Process | Mortgages | Home inspection

Closings in Florida | Florida Homestead Information

Naples contract to purchase a home (PDF)

Florida contract to purchase a home (PDF)

THE HOME BUYING PROCESS

There are steps to buying a home just like there are steps to looking for a job. To help you along the way, start with a Realtor, also called "an agent".

I will help you along the path to owning a home, helping you with decisions on neighborhoods, financing, home values, contract to purchase, negotiating the sales price, and the closing process.
How do we start?

When we first sit down together to discuss hour home purchase, I will explain in which agency capacity I will represent you and make you sign the relevant documentation, required by the State of Florida.
The next thing is to determine how much you qualify for in a mortgage, and discuss different financing options. This is critical, as you don't want to waste your time looking at homes that you would not qualify for.

Two people can buy a house together regardless of whether they are married or even related. Parents can assist as co-signers on a mortgage note, or they can give funds for a down payment to help out. You can borrow on your retirement account or insurance policy, if necessary, for part of the down payment. Most lenders will require you to meet general guideline qualifying ratios.
I can put you in touch with various lenders. Is it a good idea to be "prequalified" by a mortgage company or bank before you make an offer to purchase a home.

We then put our heads together to find out what type of home and amenities you would like. Usually, a home will no have all the things you are looking for, so you will have to compromise. We will consider how far you want to drive to work, school districts, age of home, number of bedrooms, vicinity to shopping. We will explore if you are willing to renovate a home, if you need a formal dining room, if you want a home on one level or two levels, if you need a large lot or if you prefer a gated community.

My next step is to locate homes in your price range that are as close as possible to what you wish, and to email (or mail) you details. Also, I will give you a copy of the purchase contract. Any offer you make is presented to the seller in the form of the purchase contract, and once the seller has signed it, it becomes a binding contract. As I am not allowed to give you legal advice, you may want to show this contract to your attorney.

Next we will go out and look at a few homes. When previewing the homes I will encourage you to take give me as much feed back as possible, and tell me which ones you prefer and why, as this will assist me in focusing in on the right areas and houses for you.

When you have found a home that you would like to purchase, we will discuss the asking price and what has sold in that area recently. The "offer" document in Florida is actually the "contract to purchase", which you sign when you make the offer and as soon as the seller has signed becomes a valid contract. I will also ensure that special clauses are attached to the "offer" , if need be.

I will deliver the offer to the Listing agent who will present it to the Seller. The Seller will either accept the contract as written, make a counter offer (changing the price/terms/conditions), or reject the offer.

Once the Seller has come to a decision the Listing Agent will let us know. If the Seller counters your offer, we will get together and work out whether to proceed with this house or continue to look at more homes. Once all parties have agreed to all terms and conditions in the offer and signed, you have an executed contract. It is at this time that the earnest money stated in the contract, should be paid.

There are specific dates that all parties must adhere to, and I will make sure that everybody complies. Your check will be deposited in an escrow account where it will be held until the closing. The title company will begin researching the title on the property and provide you with a title commitment showing all liens, encumbrances and judgments on the property. We will review this report.

Now it is time for you to complete your formal loan application, if you have not already done so, and provide the loan officer with a copy of the contract. The lender will order the appraisal on the home and proceed to verify all of the information on your loan application. Once the appraisal has been received and all of your financial and employment information has been verified, your loan application will be submitted to the underwriter for approval.

If everything is in order your loan will be approved at this point and the title company can proceed to the next step which is drawing papers for closing. If additional information is required, the underwriter will set forth the conditions under which the loan will be approved and the loan officer will advise you accordingly.

In the meantime, you will have scheduled a home inspection and complied with the dates in the contract regarding inspections. I will provide you with a list of Home Inspectors in the area, if you wish.

Depending on the contract used, and special clauses negotiated, the Seller may or may not be responsible for having the repairs completed prior to closing. Normally, the repairs are not started until after loan approval, another reason to make certain that the loan officers have all the information they require in a timely fashion.

While the loan is being processed, you should find an insurance company to provide the homeowners insurance. Your mortgage company will require that you provide an insurance policy for the value of (at least) the loan amount. This is for their and your protection should the property be damaged by fire, tornado, etc.

Once you decide on an insurance company, the insurance agent will call the title company and the cost of the policy will appear on your HUD closing statement.

Your loan has been approved, the repairs have been made, your insurance is in place, it is time to arrange the closing date and time. Once the mortgage company sends instructions to the title company, they will draw the papers and prepare an accounting of all the funds on the closing statement. After they have completed the closing statement they will let you (or me) know how much money you should bring to the closing. The title company requires your funds to be in the form of a cashiers check or certified funds.

On the closing date you should have a final walk-through and inspect that your new home is in the condition agreed on in the contract, and that all the inclusions are present in the home.

At the closing you sign all your papers. You should bring your cashier check and a photo ID, (driver's license) for each party to the contract, as the notary who acknowledges your signature needs to verify who you are. Sometimes the Buyers and Seller close at separate times, but usually all parties sign together. All parties must execute the documents (deed, mortgage note, etc.) before the papers can be recorded and the loan funded. Normally, you will not get the keys until the mortgage money has arrived and has been given to the Seller.

The closing agent is in charge of the closing and will explain briefly each document that you are signing. As you should read everything you sign carefully, please request a set of closing documents in advance of closing and review them (with your attorney, if necessary), because there is not enough time during the closing to read all the small print. The documents are standard documents and have been drawn at your lenders instructions. The title company cannot change anything on the documents without the lenders approval.

When you are reviewing the papers, double check the interest rate, and terms of the loan to insure that they are at the agreed rate. I do not get a copy of these documents, so you need to verify the information yourself.

Once you have signed all the necessary papers, and handed over your cashier's check, the closing agent will fax certain documents to the lender's closing department. The lender will then authorize funding and approval to disburse funds. This usually happens within a few short hours. It is much better to close early in the day if you need to move in right away.

The listing agent will have instructions on how to release the keys. All that is left for you to do is collect the keys and move in!

BETTER SERVICE - LESS STRESS

Return To Home Page