Buyer’s Guide for Residential Purchases

Step 1: Pre-qualification process

Mortgage Brokers or Bank:

Mortgage brokers or Banks are recommended to get pre-qualified prior to viewing homes and to secure a loan once we find a home to buy. You can go to your bank of choice directly but Mortgage brokers work with different institutions and will probably find you a better deal.

Documents to provide to financial institution or mortgage broker for pre-qualification:

Clear copy of photo ID

Clear copy of social security card

Last 2 years of tax returns

Pay stubs for last 30 days

Two recent bank statements- all pages

Step 2: Buying process simplified

This is just a guide from my experience. I am not an attorney and I do not intend to act as one.

Choose a Title company and and an inspector once you’re under contract.

Make sure to get an inspection done to home or condo within the first 7-10 days of accepted offer. If anything is wrong with the property, we can go back to the seller and either re-negotiate for repairs or cancel contract.  The realtors can arrange the date and time but the buyer is responsible for payment and for contacting inspector directly for prices and payments.

1.       Once we find a home, we present offer along with a deposit made out to the escrow or title company.

2.       Once the offer is accepted, the executed contract is sent to title company and to all parties involved. Buyer provides mortgage institution with contract and title company info to start the mortgage process. It can take 30-45 days on average for closing. It also varies depending on mortgage. FHA usually requires more time than a conventional loan. If it’s a cash transaction, all dealings will be with title company only.

3.       Condo docs have to be provided right after we enter in contract. Buyer has 3 days to review them and decide whether to continue with purchase or cancel. Does not apply for a house, only condominium. HOA addendum showing assessments or due maintenance needs to be requested along with seller’s disclosure.

4.       Inspections for the home are scheduled. We have 7-10 days to do so. If inspections come back with considerable damage of home, contract can be renegotiated or cancelled depending on circumstance. Bank or financial institution usually orders an appraisal of the home after inspection period has passed. If appraisal is below purchase price (only mortgage transactions), then the contract will be cancelled since it is subject to financing.

5.       After inspection period, we notify the title company to start the title search. If the contract specifies additional deposit, buyer needs to wire the funds or provide the title company with a check by the due date.

6.       Buyer is responsible for sending application to the condo management company as soon as possible since condo approval is needed to close. Typical condo approval takes 1 week to 30 days and the average is 2 weeks. Does not apply to houses.

7.       Once all title search and mortgage documents are in order, we are ready to close!

After Closing:

Make sure to set up utilities under your name. FPL, phone, cable, maintenance payments.

If living in the property, make sure to apply for homestead exemption to lower your taxes.

Visit www.miami-dade.gov to apply after closing if the property is in Miami-Dade.

I will be here during the whole process!