Purchasing Process

Now that you’ve selected the property here’s what to expect during the purchasing process:

Offer:  The initial offer must include a signed contract, proof of funds or pre-approval letter if obtaining financing, and any addendums the seller wants signed.

Signed Contract-Most sellers will require an as-is contract for submitting an offer.  What this means to you is that you are contracting the property as-is with no demands for repairs but with the right to inspect.  In Florida we use a state approved form which you will find a copy of in our Learning Center tab.  In the offer we will also highlight the closing date (approximately 14 days for cash transactions and 45 days for financed transactions), time for acceptance of the offer, inspection period and any other special requests.

Proof of Funds or Pre-Approval Letter-Sellers want to know that you are qualified to purchase the property and this is how you prove it.  If you are a cash buyer you will need to supply your last bank statement reflecting enough cash to purchase the property.  Most sellers require that your funds be in a US banking institution.  If you are financing a portion of the purchase then you need to ask your lender for a pre-approval letter.  This letter must be in the lenders letterhead and state your name, type of loan, and loan amount among other things.

Addendum-Most common when purchasing bank owned properties, addendums will range from a separate contract the bank has drafted to signing property disclosures and vary from property to property.

Time for Acceptance:  Once the offer is submitted we wait to hear back from the seller.  The time for acceptance of the offer varies with each seller and each situation.  For example, some banks will give a response within 3 business days while others can take up to 7 days.  Then there are banks that want to give special consideration to owner occupants and will review only those types of offers during a specified period and then move on to investor or 2nd home purchasers.  For regular-private owner sales we can get a response usually within 24 hours and for short-sales we can wait for a response anywhere from 30 days to a year.

Acceptance:  Once the offer is accepted the seller will designate a title company to handle the transaction.  The title company will immediately collect the deposit, make sure the title is free and clear, and prepare the closing documents among other things.  They will pretty much handle the transaction from here on out.

Inspections:  I always advice to ask for a minimum of 5 days inspection period in the initial offer.  Immediately after acceptance of our offer, we will schedule the inspection to ensure that there are no hidden issues with the property.  You will receive a report from the inspector and based on this report you will decide if you want to continue with the purchase.  If major issues are found you can elect to back out of the transaction and your full deposit will be returned to you.

Financing:  If you are purchasing using financing, then once the inspections are done and you find them satisfactory, we will concentrate on getting your financing done.  Like previously stated, financing will take approximately 45 days and you will be working closely with your mortgage broker during this period.  We will be here to offer support and answer any questions you or your mortgage broker may have regarding the property or the transaction.

Closing:  After the title company has done all of their tasks they will schedule closing.  It is not mandatory for you to be present at the closing.

For Cash Transactions-Closing is very easy and you will have to sign anywhere from 8 to 15 pages.  It can be done from your home through email and fax.  The funds can be transferred directly into the title company’s account and we will pick up the keys and documents for you.

For Financed Transactions-If you are not present for closing I recommend paying for a mobile closer due to the large amount of documents involved with the financing.  Most title companies offer them for a small fee and they will ensure everything is done correctly, saving money and time.  If you are abroad then the title company will work with you to make sure everything is signed accurately.  You may wire the money directly into the title company’s account and once they give the word that we are closed we will pick up the keys and documents for you.

We’re done!!!!  Well, at least with that part.  This is how it would go in a perfect world, but we all know how far we are from that.  Every transaction is different and issues may arise but we are very experienced and well equipped to deal with anything that comes up.

  • Offer: The initial offer must include a signed contract, proof of funds or pre-approval letter if obtaining financing, and any addendums the seller wants signed.
  • Signed Contract-Most sellers will require an as-is contract for submitting an offer. What this means to you is that you are contracting the property as-is with no demands for repairs but with the right to inspect. In Florida we use a state approved form which you will find a copy of in our Learning Center tab. In the offer we will also highlight the closing date (approximately 14 days for cash transactions and 45 days for financed transactions), time for acceptance of the offer, inspection period and any other special requests.
  • Proof of Funds or Pre-Approval Letter-Sellers want to know that you are qualified to purchase the property and this is how you prove it. If you are a cash buyer you will need to supply your last bank statement reflecting enough cash to purchase the property. Most sellers require that your funds be in a US banking institution. If you are financing a portion of the purchase then you need to ask your lender for a pre-approval letter. This letter must be in the lenders letterhead and state your name, type of loan, and loan amount among other things.
  • Addendums-Most common when purchasing bank owned properties, addendums will range from a separate contract the bank has drafted to signing property disclosures and vary from property to property.
  • Time for Acceptance: Once the offer is submitted we wait to hear back from the seller. The time for acceptance of the offer varies with each seller and each situation. For example, some banks will give a response within 3 business days while others can take up to 7 days. Then there are banks that want to give special consideration to owner occupants and will review only those types of offers during a specified period and then move on to investor or 2nd home purchasers. For regular-private owner sales we can get a response usually within 24 hours and for short-sales we can wait for a response anywhere from 30 days to a year.
  • Acceptance: Once the offer is accepted the seller will designate a title company to handle the transaction. The title company will immediately collect the deposit, make sure the title is free and clear, and prepare the closing documents among other things. They will pretty much handle the transaction from here on out.
  • Inspections: I always advice to ask for a minimum of 5 days inspection period in the initial offer. Immediately after acceptance of our offer, we will schedule the inspection to ensure that there are no hidden issues with the property. You will receive a report from the inspector and based on this report you will decide if you want to continue with the purchase. If major issues are found you can elect to back out of the transaction and your full deposit will be returned to you.
  • Financing: If you are purchasing using financing, then once the inspections are done and you find them satisfactory, we will concentrate on getting your financing done. Like previously stated, financing will take approximately 45 days and you will be working closely with your mortgage broker during this period. We will be here to offer support and answer any questions you or your mortgage broker may have regarding the property or the transaction.
  • Closing: After the title company has done all of their tasks they will schedule closing. It is not mandatory for you to be present at the closing.
  • For Cash Transactions-Closing is very easy and you will have to sign anywhere from 8 to 15 pages. It can be done from your home through email and fax. The funds can be transferred directly into the title company’s account and we will pick up the keys and documents for you.
  • For Financed Transactions-If you are not present for closing I recommend paying for a mobile closer due to the large amount of documents involved with the financing. Most title companies offer them for a small fee and they will ensure everything is done correctly, saving money and time. If you are abroad then the title company will work with you to make sure everything is signed accurately. You may wire the money directly into the title company’s account and once they give the word that we are closed we will pick up the keys and documents for you.
  • We’re done!!!! Well, at least with that part. This is how it would go in a perfect world, but we all know how far we are from that. Every transaction is different and issues may arise but we are very experienced and well equipped to deal with anything that comes up.