Purchasing Process

If you are not a cash buyer the first step is getting the pre-qualification done. What this requires is getting pre-approved for a mortgage. This will be Sarasota International Real Estaterequired to present with any offer or you must be able to show proof of funds. It usually takes about a week to get this completed, so this should be one of the first things taken care of. Once the pre-approval is done, you'll need to forward the document to your realtor so that they can put it together with any offers you may make.

When a property is found, an offer will then be made to the seller. If the offer is accepted, then the closing is typically scheduled for 25 to 50 days from date of acceptance. This can vary depending upon the preferences of the buyer and seller. This will be longer (sometimes considerably) if this is a short sale.

The inspection period is a critical part of the process. The time period to complete the inspection is usually 15 days, but it can be made shorter or longer (this is negotiable in the purchase contact). The shorter it is the less risk for the seller. Once the inspection is done you will recieve a inspection report for you to review.

If you are financing the purchase a bank appraisal will also be necessary. The bank will only loan what the property is appraised to be worth.

Lastly, the closing date matters very much to a seller. If you are dealing with a foreclosure, the faster the closing date the better. The banks want the Sarasota International Real Estateproperty off their books as soon as possible. Banks can usually close on a property within a couple of weeks so that is what should be offered on a foreclosure. When buying a short sale the closing date will have to be extended somewhat. Short sales require the seller's lender's approval and, as such, they can take a few months to close. In the case of a short sale, a buyer has to be willing to wait for that approval and probably needs to count on the fact that the closing date will be extended at some point.

Once the two parties are under contract, a title company (who may be compensated by the seller or buyer) will close the transaction. The title company will handle all aspects of the closing. The buyer or seller may retain the services of an attorney, it is up to their discretion. In Florida, the closing cost fees are paid either by the buyer or the seller or split (this is negotiable in the contact), but there are some buyer expenses you'll need to be aware of.

Here is a summary of estimated closing costs for a typical residential transaction:

Recording of Deed: $50
Pro-ration of property taxes for the calendar year (annual taxes are paid in arrears in Florida)
Pro-ration of dues (HOA, condo fees or similar)
Professional property inspection: $350
Appraisal, if required by you or your lender: $300
Miscellaneous other fees: $150 to $300
Attorney Fees, if required by you or your lender
There are additional fees if you are taking out a mortgage:

Documentary stamp on mortgage: 0.35 per $100 financed (e.g., on a mortgage of $200,000 the doc stamps are $700)
Recording of Mortgage: $60
Intangible tax on mortgage: .002 on mortgage amount (e.g., $400 on a $200,000 mortgage)
Fees charged by your lender (processing fees, points, credit report, and so on)
The above estimates are a guideline; we'll help you get a more specific estimate by providing you with a buyer's "net sheet" before writing a purchase contract. Also, a week or a few days before closing, the title company or real estate attorney will provide a settlement statement (called a HUD) that states all fees, to whom they are paid, and the final amount due at closing. Together, we review this carefully prior to closing.

The closing would be a mail away for an international buyer. Most documents can be handed by email and fax, and those that can't will normally be Fed-Ex'd overnight. The closing could also be a mail away for the seller if it is a foreclosure and would be handled much the same way as the buyer's side.The closing fees for a cash purchase are minimal. If the property is being mortgaged there will be additional associated the closing fees.