Florida Mortgage Advice: How to Enjoy a Smooth Closing
Don’t get overwhelmed by the home buying process. Follow these steps and ensure that closing on the house of your dreams is a hassle-free endeavor…
- Compare Florida mortgages. Don’t simply accept the first mortgage option presented to you by your bank, real estate agent or Florida mortgage broker. Spend time comparing offers to be sure you get a plan that’s right for you. There are several variables to consider including the type of mortgage, the term and the lender. Be sure to weigh all of your options.
- Get pre-approved. Receiving pre-approval on a mortgage enables you to know exactly how much you can afford to spend. It allows you to make a more aggressive offer, present the seller with more attractive terms and negotiate a better price. It also helps prevent you from losing out to another purchaser who already has financing arranged.
- Reserve funds for closing. In addition to your down payment, you will need to reserve funds for closing costs. Depending on the type of Florida mortgage loan and your location, these costs can range from 2 percent to 6 percent of the loan, must be paid in cash (certified check) at closing and cannot be borrowed funds.
- Hire a home inspector. You should always check the condition of the home you’re purchasing to be sure the home is structurally sound. For that assessment, you should hire a home inspection company (preferably one belonging to a reputable association or that is licensed to practice engineering) and get a detailed written report.
- Search the title. Your lawyer should search the title records to make sure you’re buying the house from its legal owner and there are no liens (claims on the property as security for money owed), overdue special assessments or other claims or outstanding restrictive covenants filed on record, which would adversely affect the marketability or value of title.
- Obtain home insurance. Another key part of the financing process is obtaining home insurance. Your Florida mortgage lender will require proof of a valid homeowners insurance policy, secured before closing. This policy will protect your investment as well as the lender’s.
so the title can be smoothly transferred over into your name.
- Avoid closing at the end of the month. The end of the month and the end of the year are both very busy times for closing agents and mortgage lenders. Avoiding these times means you’re likely to get more personal attention and there will be less chance of an error being made. That’s always a good thing.
SOURCE: Lending Tree
