Real estate closing procedure in Florida

Buying a new house can sometimes be very stressful and tiresome process. And if you are not sure how to do it properly, that can be even more difficult. If you are relocating to Florida, we can make that process much easier for you. So, in this article, you can find some advice on how to handle buying a house and what you should do during the real estate closing procedure in Florida.

Real estate closing procedure in Florida
Keep reading to find out about your responsibilities during the closing procedure in Florida

Where should your real estate closing procedure in Florida start?

The process of buying a house is filled with documents, important dates, contracts, market movements and checklists that can even overload experienced investors in real estate. One of the main reasons you work with a professional real estate purchase team is that you can rely on their joint experience to ensure a smooth and painless closure.

Some agents and loan officers can close more than 20 transactions per month. You can obviously see where this helps to have several trustworthy professionals in your corner. The closing procedure in Florida can be considered as the most important part of a real estate transaction. Unfortunately, most things can go extremely wrong. Like with hiring Florida moving services for your move, you should also hire professionals for closing process.

If you consider all the initial questions, problems, documents and unforeseen circumstances at an early stage of approval of the mortgage and the process of buying at home, then you should be sure to go into closing with all the bases.

However, we listed a few tips to highlight several important topics you should know about during the closing process.

Six pre-closing conditions that can delay your deal

Your creditor may have submitted a Letter of Preliminary Approval and Mortgage Obligation. But, there may still be several conditions that may delay the closure. Sometimes buyers and agents leave their guard down with the relief of obtaining closing documents to the title. And then they forget that there can still be a lot of work.

The conditions before closing are those items that the underwriter will require after viewing your file. That may simply be an updated payment card, a letter explaining the latest credit requests or a more detailed explanation of the information found in the tax return.

Below is a list of several pre-closing conditions that you should be aware of. Especially if you are buying your first home.

1. Updated documentation on income

Perhaps you have provided your creditor with a mountain of documentation. But make sure that you keep all of your new payrolls and financial statements as you go through the process. Most likely, your creditor will want to update the documents as you approach closing.

2. Credit inquiries

If you had the latest requests in your credit report, the lender can check whether any new loan that has not yet appeared in your report has been expanded.

The request can be for something of a minor, such as a new cell phone. But it can also be something that will affect your ability to qualify for a loan. Something like paying a car or another loan that you signed to help a family member.

Signing a contract
Make sure you don’t buy anything too expensive prior to start of the closing procedure in Florida

3. Verification of employment

Your lender will check if you are still actively working at the position indicated in the application for a loan. And they will do it several times during the closing procedure in Florida. Therefore, make sure that you notify your lender about regular life events, such as maternity leave or surgery in advance.

After the underwriter starts to disclose surprises, he can keep the file for some time. Just to make some unnecessary digging to find out if there are any other problems that the borrower didn’t mention.

4. Means for closing

Lenders will want to indicate the source from which each dollar for the transaction comes. And verify that it was deposited into your bank account. If the funds must come from a retirement account or the equity line, start the process as soon as possible.

Sometimes lenders will not issue all funds immediately after a large deposit. So it is important to have them in place long before the closing date. The same applies to gift funds. Make sure that the donor is aware of your time frame. And that he is ready to provide the necessary documentation to your creditor.

5. Search for titles and judgment

As a rule, the search for titles and judgments happens later in the mortgage process. That is because they are not ordered until you receive a mortgage obligation. These searches can reveal judgments against your name or sellers. As well as mortgages against the affordable Miami house that you are buying or selling.

Sometimes even an old mortgage appears against the property because it has never been properly discharged. Or if you have a common name, objects that are actually not yours can appear. In any case, the underwriter and title company will want to be sure those do not exist before closing.

6. Homeowners and flood insurance

Lenders want to review your policies a few days before closing, to ensure that coverage is sufficient. And to accurately account for it in your monthly payment. Insurance coverage can sometimes be difficult to obtain depending on your past history with claims, credit, location, and property type.

Items you need to bring at the end of the closing procedure in Florida

Your real estate agent or mortgage officer must provide you with a final list of documents that require signatures. So the general list of items that you need for closing is quite simple:

1. Funds for closing

If you need to make an initial payment, you will need to bring a verified check from the bank. The escrow company, your agent and the loan officer must provide you with full information about all charges in the transaction.

Although these final figures may be more accurate than the initial Good Fate Estimate from the beginning of the application process, you may need a small buffer amount to cover any prepaid interest or other minor changes.

Papers with words legal and illegal
Keep in mind, it is important that these funds come from the proper sources

2. Proof of identification

In order to finish the real estate closing procedure in Florida, you will need some documents to prove your identity. That can be an official driver’s license or state identification card. And passports will work as well.