So, you’ve gone to see your lender and been pre-qualified. You’ve searched for weeks for the perfect home and you’ve found it. You’ve chosen a savvy real estate agent and have negotiated the perfect offer and to your surprise, it’s been accepted!
Well, first of all Congratulations! Now get ready. Things will start to move quickly. Your agent will provide you with a list of critical dates that pertain to the contract and you will get to work.
Your lender will send you a list of required documents and it’s your job to get these documents/ requested information back to your lender in a timely manner. Timely means quickly! The longer it takes for you to get these items back to your lender the longer it takes to submit your loan to underwriting and the longer it takes to be approved for closing.
Get this to your Realtor or title company ASAP and be sure to keep a copy of the deposit for your records. This deposit is refundable through the inspection period and will be applied to the final amount that you will need to bring to closing.
Typically the first 10-15 days from your date of acceptance are your inspection period. This is your opportunity to inspect the property and not just on your own. Your real estate agent will have a home inspector recommendation and you should work to get this scheduled as soon after the acceptance date as possible. The home inspector will inspect every part of the home that he/ she has access to and will give you a nice little report including photos and descriptions to review.
This is also your opportunity to call in any contractors or additional inspectors for estimates on repairs that will need to be made. All of this information is very important when determining if you will move forward with a purchase. Do the numbers still work once you add in the costs of all the repairs? If yes, proceed to the next step.
Insurance Shopping: The Big 3!:
Start reaching out to your recommended insurance providers and getting quotes on the necessary insurances (click here for a list of my recommended insurance providers). If you are financing a property in Florida you will likely be required to carry 3 different insurances: flood insurance, windstorm insurance, and hazard insurance. The bank will require you to prepay for the first year of insurances and then will escrow your insurances through out the year to pay the future years on your behalf.
Appraisal, Survey, & Elevation Certificate:
You will likely be required to have one of each. The appraisal will tell you how much your home is worth in the current market.. The survey will be reviewed by the closing attorney to be sure there are no encroachments on your property and the elevation certificate will tell your insurance company how high off the ground the lowest point of your home is. The appraisal, survey and elevation certificate will likely be ordered by the bank however you as the buyer will be responsible for the payment. Generally, appraisals are pre-paid and the survey/ elevation certificate can likely be paid for at closing.
Taking care of each of these steps and communicating with your Realtor will get you to the closing table and on to the fun part and ultimate goal… homeownership!
Call, text, or email me (305-394-4073 or firstname.lastname@example.org) for additional information on how to purchase your first home. I am a full time agent with Preferred Properties and ready to assist you in purchasing your Florida Keys home!