*Disclaimer*The information below is based on my experience. In all cases regarding permits, or anything that could affect the value of the home--You SHOULD check with Monroe County officials directly.
Qualifying for a Loan
A-One of the first things you should do is to talk with a lender who will Pre-Qualify you based on your income, debt ratio, and money available for a down payment. This is a very easy thing to do, just a short phone call. This will accomplish two things
1- We'll know exactly the price range to shoot for.
2-We'll be in a much better position to make an offer and get it accepted if you're already pre-qualified.
*If you're not already down here, contact me for names of Lenders and loan officers or look at the Vendors page on my site for a list of names and numbers.
IMPORTANT--Why should I use a local lender?
The Banks here know the areas (various Keys and neighborhoods) and are used to all the scenarios you run into in a destination resort home market. This includes vacation homes, using homes as a rental, retired with no income, etc. Generally it is easier to get a local bank to get the deal done and with a lot less hassle.
The down payment or how much do I need?
This can range from as little as 5% down to whatever you want or can afford to do. (in some cases there are no down loans-however you will sti;; have closing costs) Remember-The less money down the harder they will look at your credit scores. For instance:
If you have good credit, a good job, but no money saved for a down, you CAN get financed, with only two payments in the bank.
I have had investors come in with as little as 5% to 10% down on homes they used as rentals.
As a general rule, 20% down is the magic number, whereby you won't have to pay mortgage insurance or PMI.
A step by step explanation of how an offer on a property is done!
We write a contract or offer that states the price you want to pay, the amount down, the terms (financing or cash) the closing date and contingencies or addendum's (see later)
At the time of writing the contract, you will put up a small deposit which goes in an escrow account. This is earnest money to show a good faith offer. Generally this starts as low as $500.00 and goes up based on the Homes price.
After the contract is written and signed, I present it to the listing agent and there is a specific date for the seller to give us an answer. We don't leave it open ended.
All counteroffers can be handled via phone or verbally.
To know
The good homes (well maintained-move in ready) generally go quick and everybody knows what the good homes are down here. That's why its so important to have your financing squared around, so if we do find a sleeper we can move on it quickly.
Basically since most homes here are second homes they generally are not as well maintained as a primary home. The homes that are generally the best condition are either owner occupied or homes that are vacation rentals. I can tell you that if there is ever anything wrong with a vacation rental-the renters call immediately to get it fixed.
Consider the offer as a negotiating point-Again, I ca thing I do that will help your decision, is to pull up a current comparison on homes that have sold in the area and are for sale.
