Now we have successfully found you a property and negotiated terms we need to begin the process of getting the property to close.
This process entails several several parts and we’d like to go through some of them for you so you understand what will happen and what your responsibilities will be.
Title Company
The contract will be sent to the title company selected by the seller. The title company will oversee the transaction and act in a neutral capacity to ensure the contract is enacted by the terms within. The title company will be responsible for the lien search to ensure the property is free of any encumbrances and is free to transfer to the new owner. The title company will also hold and disburse all of the transaction funds and will not act unless a document is authorized by both parties. The title company will also record the deed and transfer ownership when the sale closes and funds.
The title company will also send you the wiring instructions for the deposit. Read more about the Title Company.
EMD
Your offer will include an Ernest Money Deposit (EMD) and most likely will need to be made within a few days of going under contract.
The title company will send you the wiring instruction to give to your financial institution so they can transfer this sum to escrow.
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.
**It is not a bad idea to add $50 to the transfer, many wire companies and banks might charge a fee and if you are short you will have the hassle of having to send more and paying another fee. Any overage will be credited to you so it costs you nothing.**
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.
Home Inspection
One of the first priorities will be to have your home professionally inspected. If you already have a licensed Home Inspector we can coordinate this with him. If you do not we can recommend one of our approved vendors to you so we can get this underway as soon as possible.
Generally a home inspection (or a survey to UK buyers) can be ordered and accomplished pretty quickly – usually within a few days. You will get a report of all items found that needs attention and we can progress when we know the specifics.
We need to get this accomplished expediently as time is of the essence as specified in the contract.
You will also want to read THIS PAGE on the Inspection process.
Tax Services
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.
You will have to file US tax returns and that requires an ITIN#. We will be able to recommend a vacation home tax specialist who can guide you though the items you will need to know. It may not sound like a lot of fun but it’s actually a pretty simple process that most people find very straightforward.
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 now. Talk to an insurance agent and get the process started.
We can introduce you to one of our local insurance specialists who understands the central Florida market and can advise you on what is needed for your property investment.
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.
If the property is already in a STR program we will gather the necessary information regarding the current program and assess if it is a viable option moving forward.
We usually suggest staying with the current program through the buying phase and at least giving the current PMC the opportunity to win your business. It also makes the transition easier. If you have already decided on an alternative PMC then we will work with both agencies to ensure the smooth transition of the property, business and any transferable bookings.
A big part of the management is the current bookings and if / how they might convey to you as a new owner. Please read through this page on Conveyance of Bookings so you understand how the process works.
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 may save you a lot on money.
Financing
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.
This time is written in the contract and is usually between 30-45 days from going under contract.
Be very aware of the closing date on the contract. It is very important that you are “funded” by this date. Plan on 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 are responsible for your financing, make sure you stay on top of the lender and ask for frequent updates on the loan process. Continuously ask if there is anything more the underwriter requires from you.
Lenders process hundreds of files at a time, it easy to slip down the priority list if you are not cognizant about the time frame.
You don’t want to slip down the priority list. Make yourself a priority with them!
Write the dates in your calendar and add dates to follow up with the lender.
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.
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 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!