Now we have successfully found you a property and negotiated terms we need to begin the process of getting the property built and to close.
This process entails several parts and we’d like to go through some of them for you so you understand what will happen and what your and our responsibilities will be.
*Please note: many items only pertain to foreign nation buyers. Domestic buyers may not require many of these items.
EMD
Your offer may include an Ernest Money Deposit (EMD) and most likely will need to be made within the next few days.
We, the builder or possibly the title company will send you the wiring instruction to give to your financial institution so they can transfer this sum.
When you have a receipt from the transfer please send us the confirmation so we can follow up with the title company to make sure it has been received.
Foreign Exchange Transfer
An area you can save a considerable amount of money is efficient foreign exchange transfer, specialist FX trading companies can save you many cents on the dollar over traditional banks and have the additional value of no transfer fees and immediate exchange. Setting up this program is one of our top recommendations to help save you money and it will also make the funding of your transaction much simpler.
Our preferred vendor is MoneyCorp, we can provide you with additional resources if requested.
Please read this page for further information.
Please let us know if you would like to set this program up, as preferred partners we can assure you of expedited preferential service.
The Build Process
We will visit your home regularly to bring you updates. During the visit we will take pictures and as we get closer a walk through video.
You can see an example of a new home being build and how it looks and what to expect.
We will be there every step of the way to make sure you are up to date on the progress and time line.
During the build process
We have several things to accomplish while your home is being built, not all might be applicable to you:
- Set up your property management
- Set up your furnishings
- Set up your home insurance
- Set up you ITIN #
- Set up a US bank account
Utilities
Utilities such as electric, telephone, TV, Internet, Water have to be set up.
In most cases this will be handled by your property management company (PMC).
This is a discussion you should have with them. If for any reason they do not handle one or any of the utilities then you need to set that up manually.
It’s not a particularly difficult process but one you need to complete before closing – or you won’t have electricity or water!
Tax Services / ITIN#
No one likes the “T” word but it’s far better to have it taken care of ahead of time and by a professional who understands the process.
If you are a foreign national then we highly recommend you use one of our tax specialists.
If you intend to rent out your property you will need a US Tax ID number and our specialist can provide that service for you too.
If you are a domestic buyer you should notify your accountant so you can have him prepare for your added business details.
Insurance.
Depending on your property type you will need to get property, content and liability insurance.
This is something you should do before closing. Talk to an insurance agent and get the process started.
You can use any insurance agent of your choice, we recommend one that specializes in STR.
Sarah Pappas
P Fudge & Associates, Inc.
407.965.4168
sarah@fudgeinsurance.com
www.fudgeinsurance.com
Property Management Company (PMC):
If you have decided to rent your property then you will need to look at your property management options.
We can help with giving you some recommendations – so if we have not already covered this then it should be a priority during our next communication.
Property management is a complex part of the process and not something we can type up a few lines about so lets take some time to address this soon.
You might also want to read over “Short Term Rental Program“, if you have not already.
Funding
If you are a cash buyer you should begin the process of making arrangements to transfer your funds for closing to the title company several days before scheduled closing.
If you are an international buyer you should set up a foreign exchange account to maximize your funds for foreign exchange. Let us know immediately if you need assistance with this – it will save you a lot on money.
If you are financing you should begin the process of getting your loan package together. You have a date on the contract that you are expected to fulfill called the “loan commitment”, this is an important date because this signifies your financing contingency period. If you are unable to show you are likely to be able to finance by this period the seller has the right to withdraw from the sale – so we have to be cognizant of this time frame.
Be very aware of the closing date on the contract.
It is very important that you are “funded” by this date. Plan of having your means to fund available prior to this date, take into consideration transfer times for wiring. You do not want to be late to fund for closing.
Although very rare a seller has the right to cancel a sale and keep your deposit if you don’t perform to the terms of t he contract. You do not want to put yourself in that position if at all possible.
Write the dates in your calendar!
If you are financing
Things to Remember:
After you’ve applied for your new home mortgage, keep the following in mind:
- Do not increase your debt by making any major purchases such as a car, furniture, or electronics.
- Do not move funds between accounts.
- Save all documentation on any deposits into your accounts.
- Keep balances on all revolving accounts as low as possible,
- Be sure payments on all current accounts are paid on time!
Be careful not to make any changes to your personal finances until after you have closed and funded your purchase.
The underwriter can recheck you at any time prior to you closing and it can cause a problem if your finances have changed.
Home Inspection
Before you close we highly recommend your new home is professionally inspected.
Having a third party professional eye create a punch list to be delivered to the builder on your behalf is a very good investment.
We can set that up prior to our final property walk so we have all items resolved prior to your closing date.
You will also want to read THIS PAGE on the Inspection process.
These are the first steps you will need to do to ensure a smooth closing. To many it may seem a little overwhelming but our top class team here to help you though it and together we will make sure it is smooth and easy.
About a week or so from closing we will be in contact with you regarding the “Closing Process”, by that point we will just need to go through the final details and what that will entail.
Let us know if you have any questions,and once again congratulations!