Take advantage of the Mortgage Broker's free and no-obligation offer to be informed in advance. You may approach the acquisition of your holiday property ideally informed and with all the knowledge you need to make an informed decision if you prepare ahead of time and properly. In general, you should first determine if your project can be funded at all, as overseas purchasers are now unable to get financing for the acquisition of property in Florida. The benefit of using a loan broker is that working with a big variety of credit institutions gives you a better overall picture and more comparison options than a single bank could.
It is a pre-qualification for a certain purchase price and loan amount that may be granted by a Mortgage Broker in a very short period of time. It's calculated using your income-to-expense ratio as well as the amount of equity you have available to put toward a Florida real estate purchase. You can have this document issued at any moment, regardless of when the property acquisition is pending, without any further documents. When looking for a vacation property in a fast-moving real estate market, it's critical to be well-prepared. If you locate it, you'll be ready to act quickly so you don't waste time or lose your vacation home.
For you, the Mortgage Broker will compile a fee list. This will then show all financing-related charges, costs, and fees. This invoice will clearly reflect the amount of predicted closing fees (closing costs), as well as the amount you must spend for closing, as well as the amount of future monthly charges.
You close the deal for the purchase of the house between one of the preceding points. Because finance in the United States is always linked to real estate, a loan application can only be completed if a purchase contract has previously been signed. It's worth repeating that this contract must include a funding condition, sometimes known as a "Finance Contingency." If the financing is not granted, this condition ensures that you have the option to withdraw, including the refund of the down deposit.
You fill out a loan application that contains information about the property, as well as your address, employment, income, and financial situation. You must pay the fees when you submit the application. These expenses cover third-party expenditures spent throughout the loan's processing, such as appraisals, translations, courier fees, and so on.
Simultaneously with the application, the Mortgage Broker compiles a customized list for you, which includes all necessary documents. Likewise, you will then receive sample letters in German for tax advisors, employers, credit card companies, banks, etc.
Your package of documents is sent to the credit institution as soon as all of your paperwork have been completed and examined by the loan broker. A conditional loan approval is given to you after the underwriting department conducts a thorough investigation. This preliminary permission then lays forth the requirements that must be satisfied, such as the property valuation in Florida.
The American bank hires a state-licensed appraiser to evaluate the property's real market or resale worth. A copy of the evaluation will be sent to you as well. The lesser appraisal value and the purchase price are utilized in the final settlement.
You will get the so-called "Loan Commitment," i.e. the final financing commitment, once all remaining requirements have been clarified/fulfilled. The remaining third-party services in connection with the financing, such as the so-called "survey," or the measuring of the land and building boundaries, are only then sought.
The American bank submits the document package to the so-called "Title-Insurance" once it has clarified all open issues (insurance for legal defects). This insurance company checks for any third-party claims against the property when processing the loan, and then offers you a "Title Commitment" in writing, which is the insurance company's confirmation during the transfer. As a result, you may be certain that the property will be transferred free of encumbrances and other claims.
If you want to close in the United States, bring your passport and your signature to the Title Company on the day of the transfer of ownership. The bank will email you the closing paperwork whether you are in your home country or another nation at the time. In this instance, you'll need to get your signature notarized at a Notary Public or an American Consulate. The legally legitimate package of documents will then be returned to the Florida Title Company through FedEx, DHL, or UPS.
Your equity must have been posted to the Title Company escrow account before the day of closing and the ultimate transfer of the property. The so-called "cash-to-close funds" are made up of your equity, loan acquisition charges, reserves, and generally six monthly installments as a reserve.
The purchase amount is subsequently handed to the seller at closing, and you are officially recorded as the new owner. You will also receive the keys to your ideal house as well as the garage door opener. If you are unable to attend the closing, a trustworthy individual (friend, realtor, etc.) can accept the keys on your behalf. On the day of closing, you or your agent should do a final examination of the property to confirm that there is no damage to the property or installed equipment, and that any moveable things such as furniture, boats, and other personal property are there.
Your own insurances for the building will begin to run on the day of closure. Electricity, water, and other utilities must be re-registered, and your monthly loan installments will be deducted automatically from your American account in the future by direct debit.
Phil Schneider
