The steps to buying your first home in Florida

The steps to buying your first home in Florida

So, you want to buy your first home. The question is, where do you start? With the right people to guide you, the process can be enjoyable!

Below, I will break down the steps so that you know what to expect.

1. Consult with a Loan Officer- Find a Loan Officer that you would like to work with by visiting http://www.upfrontmortgagebrokers.org/ or http://www.joebartolotta.com/.
Below is a list of items you will need to obtain the financing for most loan programs, especially in our current market. It would be best to gather them now, before the meeting with your Loan Officer.

• W-2's for the past 2 years for everyone on the mortgage.
• If you are self employed, you may need signed tax returns for the past 2 years.
• Paycheck stubs for the past 30 days
• 2 Months of Bank Statements for ALL accounts
• Copies of cancelled Rent checks for the last 12 months
• Make a list of all of your debts with account numbers, minimum payment & current balance owed
• Most Loan Officers will charge upfront for the appraisal. The appraisal is the valuation of the home in the current market. The estimated cost are between $300 and $400
• Copy of your drivers license or passport
• Copy of your social security card
  

After obtaining the above documents, you will then meet with the Loan Officer and sign the mortgage application. The mortgage application is then submitted with the above documents to an underwriter. An underwriter may require additional documentation or clarification on certain items, these are commonly referred to as "stips", short for stipulations. Once the underwriter has signed off on all stips, the loan is then sent to the closing department. The closing department creates a package and the package is then sent to the title company. The title company creates the closing paperwork but before the final paperwork can be signed, the loan officer must review the Settlement Statement. The Settlement Statement contains the final breakdown of all fees associated with the purchase. A good loan officer will review each and every line to insure that the fees are within estimates (for fees they estimated on the GFE) and are being charged to the correct person.

2. Consult with a Realtor-The initial meeting should go over your desired price range, the needs and wants of your home and possibly viewing a few homes via the MLS. I would like to expand on one area of this meeting, the part of needs and wants.
Determine your needs and wants- Looking at houses on the Internet is such a time saver! However, you may find that once you get inside the home you feel quite different about it. Working with an experienced professional Realtor has many benefits, one is that they often will be able to learn floor-plans of many houses and be able to show you listings that differ in their floor plans.

3. House Hunting- For most people this is the most enjoyable portion. You begin to imagine which rooms will work for what purpose, like a nursery and a home office or a media room.

4. Write an Offer-Make sure to take plenty of time going over the entire contract and all addendums. It is important to understand what you are agreeing to. You will need anywhere from $500 to 1% of the negotiated price for earnest money. The earnest money is accounted for an applied to your closing costs and/or down payment.

Negotiations-There are many points to negotiate. Not just the price. Here are a few examples:

• Earnest Money...the actual amount
• Closing Date...when is it best for you
• Closing Costs contributions....the seller of a house is allowed to pay a portion of your closing costs
• Home Warranty...historically a wise policy to obtain, it gives you piece of mind over the major systems in the house
• Misc items like a Refrigerator, Washer, Dryer, and Window Coverings
• When the contract has been agreed upon by all parties, it is then signed and considered executed.
  

5. Inspections-I highly recommend that you attend the inspection, actually, I do not know of any professional Inspector that would do an inspection without the future home-owner being present. A licensed professional inspector will go through the house inside and out, exposing the flaws and highlighting any extra features. The Inspector will write a report that will note any repairs that need to be done. These repairs could make or break a transaction. You may also be able to negotiate the need for these repairs to be completed before the closing takes place or a reduced sales price in order to cover these repairs.

6. Appraisal-The appraisal is ordered by the lender, the appraisal is the value of the home as determined by recent comparable sales within a given time frame and a given distance relative to the home you are purchasing. The appraisal is typically ordered immediately after a satisfactory inspection report. No sense is paying for an appraisal on a home that needs too many repairs.

7. Survey-A survey is required on all purchases, the survey will show all easements, building lines, and all other pertinent information that pertains to the property. The survey is typically ordered by the title company.

8. Home Owners Insurance-It is the your responsibility to obtain proper home owners insurance. Usually, you will want to obtain quotes from numerous companies. Your loan officer and Realtor may be able to assist you with reputable companies they have worked with in the past.

9. Formal loan approval- The formal approval will come after all loan application conditions have been satisfied, in addition to a satisfactory appraisal, proper home insurance coverage and clear title.

10. Final Walk-Thru-Once the home is empty you will be able to see any of the imperfections that were once covered by furniture and other items. Your Realtor will be with you to answer any questions if something has happened for example while the owners were moving their belongings out or if something has been uncovered that wasn't noticeable before.

11. Closing-After you sign all of your mortgage documents, it is time to celebrate being a homeowner.

Congratulations!
Choosing the right people to assist you makes this process much smoother and much more enjoyable. If you are looking for a home in Florida, please contact me, I look forward to hearing from you.

Respectfully,
Joe Bartolotta
Mortgage Consultant
Fidelity Mortgage Services
http://www.joebartolotta.com/
Direct 407.340.0220
Office 407.786.9500