Navigating the Sunshine State: A Comprehensive Guide to Buying Your Orlando Dream Home
Congratulations on taking the first steps towards your Orlando dream home!
As you embark on this exciting journey of becoming a homeowner in the heart of Florida, it's essential to arm yourself with knowledge and a clear understanding of the buying process. To help you navigate the intricacies of purchasing property in Orlando, we've compiled a detailed overview of the key steps involved.
Pre-Offer Preparation:
Before you dive into the home-buying process, it's crucial to set the stage for a smooth transaction. Here are the initial steps to consider:
Ensure Financial Preparedness:
- Confirm that you have the necessary funds or financing in place for your home purchase.
- Gather proof of funds (POF) or obtain a pre-qualification letter if you plan to finance.
Decision-Making Details:
- Decide on the names for the deed and provide your contact details.
- Schedule a meeting with a wealth advisor to determine how any prospective purchase fits into your lifestyle and wealth plan.
Proof of Funds (POF):
To demonstrate your financial capability, you'll need to provide the following documentation and steps:
- Certified Letter from Your Bank: Obtain a certified letter from your bank specifying your available funds.
- Ensure the letter is dated within the last 30 days and consider blanking out the account number for security.
Pre-Offer Finance:
For those opting for financing, these steps are crucial:
- Secure a Pre-Qualification Letter: Obtain a pre-qualification letter from your lender.
- Ensure your chosen lender has experience with short-term rental investment properties.
Earnest Money Deposit (EMD):
Express your commitment to the purchase through:
- Deposit Amount: The Earnest Money Deposit (EMD) is typically $5,000 or 10% if financing (may vary with new construction).
- This amount is held in escrow until the purchase is completed.
Money Exchange (For International Investors):
If you're an international investor, consider:
- Foreign Exchange (FX) Account: Set up a foreign exchange account to save on exchange rates and avoid transfer issues.
Property Overview:
Now onto the fun part, let's determine your personal criteria and get to know your prospective property by:
- Visit or Virtual Tour: Visit the property or have your Lifestyle Real Estate Advisor provide a virtual tour.
- Note the property's overall condition and consult with your Lifestyle Real Estate Advisor on any historical and current market data to make an informed decision.
Making an Offer:
When you're ready to make an offer, follow these steps:
- Drafting the Offer: Your Lifestyle Real Estate Advisor will draft an offer on a State approved "As-Is" contract, based upon the culmination of earlier discussions.
- Sign and return the offer to your Lifestyle Real Estate Advisor (typically via a secure online portal), which will be presented to the seller's agent.
The Counteroffer:
Be prepared for negotiations - three outcomes may be expected:
- Expect a Counteroffer: Sellers may counter your offer, especially if it wasn't aggressive.
- Banks may send a detailed addendum as part of their counteroffer.
Executed Contract:
Celebrate mutual agreement:
- Signing the Contract: Once both parties agree, an executed contract is signed, marking the start of the due diligence period.
Inspection Period:
Ensure the property meets your expectations:
- Home Inspection: During the 14-day inspection period, arrange for a certified home inspector (surveyor) to assess the property.
- A professional Lifestyle Real Estate Advisor will have provided a clause within the purchase agreement with an option to withdraw from the sale during this period.
The Closing:
Finalize the deal with these steps:
- Funds and Documentation: Ensure you have the remaining funds ready for the purchase.
- If you're a foreign national, transfer funds directly from your FX account.
- The closing process in many cases may be completed remotely (mail-away), unless you prefer to be present.
- Arrange for a notary if needed, especially if you're financing the purchase.