| When buying a vacation property in Florida there | | | | is it more beneficial to borrow the money in your |
| are many details to consider once you have | | | | home country and maybe trade on the fluctuating |
| decided on type of home, location, budget and | | | | dollar. Or is borrowing in Florida the best bet? |
| which Realtor will represent you in your purchase. | | | | These are big questions that need serious |
| On finding the perfect home for you to invest in | | | | consideration as they can affect how much you |
| the real work starts - the writing up of the offer | | | | have to spend on the property. |
| so negotiations can begin. However before you | | | | Do remember that when you borrow money |
| even get to this point, your Realtor should have | | | | from a lender for a Florida home purchase there |
| discussed with you how you are going to fund | | | | are additional taxes to pay on borrowing that |
| this purchase as this makes all the difference | | | | money which will increase your closing costs. It is |
| when writing up the offer. | | | | also fairly usual for the lender to ask for the |
| On a Florida sales contract for property there is a | | | | year's estimated property tax bill up front to |
| finance section on the front page that allows the | | | | ensure the buyer does not default on property |
| buyer to tailor-make the offer to suit their | | | | tax and result in a lien on their property. Another |
| financial situation. There is a line for you to fill in | | | | thing that lenders are increasingly asking for is for |
| regarding initial deposit to show good faith in your | | | | a home insurance policy to be in place and ready |
| intention to buy the home you are making the | | | | to be activated at the time of closing so the |
| offer on. There is also a line to complete | | | | home is fully ensured as the title deed is |
| regarding finance from another source, i.e. a | | | | transferred from the seller to the buyer on |
| mortgage and how much this will be. This may | | | | signing of the closing documents. |
| sound a little detailed for some not familiar with | | | | As a general rule of thumb and by no means a |
| the US way of purchasing property but this is a | | | | hard and fast guarantee, when financing a |
| good thing. As a seller you can see at a glance | | | | purchase by mortgage, expect your closing costs |
| how serious an offer is and consider it accordingly. | | | | as a buyer to be around 3.5% of the agreed sale |
| So before you even write up the offer you need | | | | price. If you paid cash for the home then the |
| to have thought about and made a decision on | | | | closing costs would be around 1.5% of agreed sale |
| how you are going to finance this purchase. How | | | | price. |
| much have you got to hand to put down? It is | | | | So remember, before you go headlong into |
| fairly usual that the deposit should be placed in | | | | searching for the perfect Florida vacation |
| escrow no later than 7 days beyond the final | | | | property, do your math first and decide how you |
| agreement of the sale (the contract), signed and | | | | plan to finance the deal - it will make the writing |
| dated by all parties. Who are you going to use as | | | | up of the sale contract a whole lot easier for |
| a lender if you decide to finance the purchase | | | | your Realtor! |
| with a mortgage? If you are an overseas buyer | | | | |