If you have to obtain a mortgage:
If it is a spec home, or will be completed within 30 days, you need to fill out a mortgage application immediately and provide a copy of your latest, current, bank statement showing funds to close plus a six month reserve, regardless the initial down payment.
If the house is to be built:
- Fill out mortgage application in it entirety. We will inform you 45 days prior to completion of the house and request supporting documents at that time so we do not have to ask for documents twice (any documentation older than 30 days is considered to be 'expired' by the loan companies). Documents have to be no more than 30 days old. Same closing procedures apply to cash purchases.
The following is needed when the house is ready or will be ready within 30 days:
- Provide 2 years of employment history (if this is not possible, you should provide documentation to verify previous employment and earnings).
- Provide a letter from your current employer showing position, date started, 2 years of earnings, and year to date earnings. If you are self-employed, a letter from your accountant showing salary for 3 years is required.
- If employed, you need to provide P60's for the last 2 years and latest pay slips within 30 days.
- 2 years of mortgage payment history is required for your current home. If this is not available, you should provide payment history information from your previous Mortgage Company or landlord.
- A copy of a current (not older than 30 days) bank statement showing sufficient money to close on the home plus 6 month payment as reserve in the bank. If a statement is not available showing the entire closing funds, latest (and current) statements of other savings accounts are acceptable provided that the funds will be transferred into the current account and a current account statement showing the closing funds can be produced prior to closing.
- Provide copies of current passports if not already done so.
- You have to open a bank account in the U.S and deposit 6 months reserve prior to closing. If you are not present in Florida we can do this on your behalf once you have signed the Power of Attorney, have provided copies of your Passport, and have received $100 for the initial opening deposit for the account.
Obtaining a mortgage
For a vacation home is simpler then what most people think. A mortgage broker can pre-qualify you for a mortgage with in minutes over the telephone. All mortgage companies offer this service absolutely free.
When purchasing a home with a mortgage, the following steps are required and highly advisable:
- Speak to a mortgage broker (under no obligation) over the telephone and get pre-qualified for a loan. The mortgage broker will ask you questions and then will enter the information into his or her mortgage calculator. In turn, the mortgage broker will be able to tell you the amount of mortgage you can qualify for. The mortgage broker will also go over the list of documents that are required when completing a loan application.
- Gather all of the required mortgage documents and information requested by the mortgage broker.
- Find your dream vacation home.
- Upon signing the sales contract, with in 5 days, you must meet with a mortgage broker and complete a loan application. You will also at this time be providing the checklist of documents required to obtain a loan commitment.
Cost of obtaining a Mortgage:
All mortgage brokers should provide a ?Good Faith Estimate of Settlement Costs? when first applying for a mortgage - this is the law. This estimate is a total break down of all the costs (mortgage broker fees, lender fees and all third party fees) related to obtaining a mortgage.
An approximate cost of obtaining a mortgage in Florida can be calculated by multiplying the sales price times 5.7%. This is assuming the seller pays for no portion of the closing costs. Some of these costs are the following: mortgage broker?s fees, appraisal report, credit report, survey, termite report, state tax on the deed (stamp taxes), title insurance (solicitor?s fees), property insurance, property taxes (rates), HOA fees, etc. Even if you do not obtain a mortgage, some of these costs may still apply such as: survey, termite report, property insurance, property taxes, HOA fees, etc.
We will try our best in helping you get the seller/builder to pay for a portion of these closing costs. On an average, the 5.8% can be reduced to about 4%.
Approximate loan approval time:
- 3 to 6 weeks for overseas borrowers
- 1 to 3 weeks on US citizen borrowers
Approximate Closing Times:
- 3 to 8 weeks on resale properties (depending upon the borrower being an overseas or local purchaser)
- 3 to 7 months on newly built properties
A Bonded Title Company conducts closings on homes purchased in Florida. Please see section on "Title Companies/Solicitors" in the website.
Loan Programs available on Second Home purchases (loans based on a 30 year fixed interest rate loan without a prepayment/redemption penalty)*:
- 20% deposit for overseas borrowers (fully documented loans)
- 30% deposit for overseas borrowers (no-income qualifying loans)
- 10% deposit for US citizen borrowers (fully documented loans)
- 20% deposit for US citizen borrowers (no-income qualifying loans)
* Interest rates on overseas borrowers are approximately 1% - 1.25% higher then US interest rates