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