Financing a Property

WHAT YOU SHOULD KNOW ABOUT FINANCING A PROPERTY

Understanding Key Mortage Options and Terms

June 28, 2024 – Finances

If you’re considering buying a home in south Florida, either as an investment, vacation home, or permanent residence, it’s important to consider the terms and conditions of getting a mortgage loan. Many financial institutions offer mortgage loans, from local and national banks to online financial institutions and private lenders.

Getting Approved for a Mortage Loan

With low mortgage rates (ranging between 4.5 and 6%) many buyers choose to finance their purchase. The following are some of the most common factors that influence the terms and conditions of the loan:

• Your nationality
• Legal status in the Unitated States
• Your credit history (if you have one)
• Your income and bank accounts

Mortgage Criteria and Expenses

Mortgage Requirements for Foreign Nationals

Navigating the process of securing a mortgage as a foreign national can be intricate, often involving specific documentation and financial prerequisites. Understanding the requirements is essential to facilitate a smooth transaction.

• An entry visa is required, depending on the buyer’s nationality. All non-resident foreign buyers must submit a copy of their passport with a valid tourist visa (B-1 or B-2).
• At least 20% to 30% of the value of the property as a down payment.
• At least 30% to 50% of the value of the property as a down payment for condominiums.
• Proof of income: Bank statements, reference letters from your bank or credit institution, two forms of identification

Borrowing Costs

Loan costs vary by institution and depend on whether you use a mortgage broker. Here are some guidelines:

• Directly obtaining a mortgage from a local bank is usually cheaper but offers limited product options.
• Using a mortgage broker is common, despite being pricier, as it provides a broader array of choices.
• Interest rates vary based on factors like credit history and property type. Those lacking credit history may face higher rates or need a larger down payment.
• The down payment varies, depending on:

Navigating property financing in South Florida requires savvy decision-making amidst a sea of mortgage options. Let’s explore how to secure the perfect property for your needs.