A Guide To Purchasing Real Estate In Miami
Buying villas for investment in Palm Beach is a dream for residents of many countries. U.S. real estate is considered a safe investment. In addition, the country is popular for immigration. How to find a suitable property, what do you need to know before you make a deal, can you take out a mortgage, and how much will you have to pay over the property? Here is a guide to purchasing real estate in Miami.
Step 1: Choosing the right property
After viewing properties and choosing the right option, carefully consider the implications of the purchase. Consider the monthly maintenance costs and the appraised property value for resale. Also, make sure that you can get the required financing. Only then can you make your final decision.
Step 2: Choosing a real estate lawyer
His responsibilities include structuring the sale transaction, drafting contracts, registering the apartment, and obtaining title documents. The lawyer also advises on taxation issues. A specialist assists with obtaining a tax identification number, opening a bank account in the United States, and applying for financing.
Step 3: Opening a bank account in the U.S. and applying to a mortgage broker
Buyers need a U.S. bank account if you plan to take out a mortgage. If you pay with your own money, there is no need to open an account.
If you plan to take out a mortgage, you should first get pre-approval for the amount of the loan.
A mortgage broker assists buyers in going through this procedure. They will determine how much you might qualify for based on your current financial state, and calculate your monthly payments. They can also help you prepare and apply for a mortgage.
A mortgage broker’s services are usually free to the buyer. The bank pays his fees. Moreover, the bank’s approval may be required when making an offer to buy.
Step 4: Preparing an offer to buy
When you have found the property you want, the realtor prepares an offer to buy. Every realtor association in the state draws up a standard contract form to fill in. It will include all the terms and conditions under which you offer the seller to close the deal.
If a buyer pays using a loan, they should attach bank approval to their offer. Otherwise, the buyer will need to provide proof of funds in their bank account.
Step 5: Signing the sales agreement and paying the deposit
Once the seller accepts your offer, you sign an agreement to purchase the property specifying all the terms: selling price, deposit, terms of sale, inspection and evaluation of the property and the deadline for finalizing the deal.
Two mandatory participants provide legal oversight of the entire process. First is a title company (a specialized agency). The second is the closing attorney or escrow company. Both serve to register the deal. Both participants check and certify the documents.
Step 6. Home inspection and further appraisal
The real estate transaction takes 30 to 60 days to complete. During this time, a licensed professional will physically inspect the property. Their task is to find any deficiencies and provide a written report.
If detected deficiencies are critical, the buyer can reject the transaction. Otherwise, it can be a pretext to negotiate with the seller for a discount.
We recommend ordering an inspection, although optional—the more complex the object, the higher the price. For example, you must pay $300-500 for a small condo or house with an area of 150 sq.m.
The expert checks the electrical and plumbing system and inspects communications. He also detects structural defects in the building. Other checks may include mold, lead paint, gas (radon), termites, and other insects.
Here you also need a market value appraisal of the property done by an independent expert for a fee from the buyer. This is necessary when you take out a mortgage in the United States. The bank will deny a loan if the property’s appraised value is lower than the sale price.
Step 7: Applying for a mortgage
After you receive an official appraisal from an appraiser, final mortgage processing takes place if you are obtaining bank financing.
Stage 8: Conducting Due diligence
After the sale contract is signed, a title search is carried out. The procedure is to see if the property can be sold, for example, if the seller has an enormous mortgage debt or other obligations. The buyer’s attorney or escrow company performs this procedure. The cost of the inspection is included in the overall closing costs.
In the meantime, the title company draws up a binding insurance agreement, which is a crucial document for the real estate object. Then the title company hands in this title insurance policy to the buyer. This policy protects the new owner and the lenders from any problems with the title.
Please note! No inspections or insurance are required when purchasing land. According to realtors, land is the easiest thing to buy in the United States.
Step 9: Pay for the Deal
After he has been given title to the property, the buyer pays the principal amount at the transaction’s closing while delivering all the additional costs with taxes added up.
The buyer can pay from an account opened in the U.S. or a third country to a particular account of an escrow company or the account of the lawyer in charge of the transaction.
Step 10. Registering the new owner
Once the total payment drops in the account of the title company or the closing attorney, the buyer receives the deed. It is a legal paper certifying that the property now belongs to the buyer.
But there are several states where the title passes to the buyer only once the deed is filed with the county courthouse or a particular registry office. Accordingly, the title company delivers the deed to the office of the circuit court clerk and returns the registered document to the buyer.
It takes six to ten weeks to register the title.
How to take the first step in the transaction
You can get started on your property selection and quickly compare prices of properties in Florida cities right now. Just visit https://florida.realestate to see offerings from developers and real estate agencies.
Join our Finance For Expats webinar Series which will include Hanah Fricker of Lendai who will be presenting the following webinar:
Navigating US Property Financing Options with Ease