FINANCING YOUR HOME
Use a mortgage broker to help get the best mortgage for your needs. Most people go through the bank where they have their checking or savings account, simply because they don’t know any better. The Mortgage Broker shops for your mortgage amongst various financial institutions, and it’s that financial institution who provides and services your loan. So you may very well end up with the mainstream bank you personally bank with anyways. But you can guarantee that you really are getting the best deal on your home loan.
CLOSING COSTS
Apart from a down payment, you'll need to prepare for closing costs. The big ones include land transfer taxes and legal fees, among a host of others like mortgage insurance, utility hookups, and moving costs. A safe reserve is about 2-4% of the purchase price of your home; so if you’re looking at properties around $300,000, that’s about $6,000 - $12,000 in closing costs.
SOLD AS IS
When a property is being sold “as is”, that means the Seller isn’t making any guarantees about the condition of the property. More noteworthy, they aren’t prepared to fix any deficiencies, either. Fear not, we'll have time to complete a home inspection and see if there are any major issues. The Seller could potentially provide you a credit or make minor repairs.
ESCROW DEPOSITS
Local customs typically indicate what is ‘normal.’ In South Florida, 5% of the purchase price is usually acceptable. There is no fixed amount required by law, but the higher the deposit, the more attractive the offer.
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For example: If you offer a deposit lower than expected, you risk looking like an unserious Buyer; your offer is rejected. In a multiple offer scenario, a sizable deposit could give you an edge; I’ve seen Sellers accept a lower price for a higher deposit.
FINANCING CONTINGENCY
A financing condition is one of the most commonly used conditions. It’s included to protect you, the Buyer, by telling the Seller that your offer to buy their property is conditional on you obtaining financing.