Vanessa Barnes

How do you intend to use the property?

• Buy to rent only – short or long term
• Buy to use for ourselves and then rent out when we are not using the property
• Not rent out – keep only for ourselves

If you intend to rent the property, you will want to take into consideration that all your expenses may not be covered. You will want to carefully analyze your budget and ensure that if your expenses are not met, that you can support paying the bills associated with your new property.

Things to consider when purchasing a property?

• Do you prefer a: Single Family Home, Condominium, or Townhome.
• Are you looking for a community with amenities such as a clubhouse, community pool, fitness center, or on site-management?
• What size home? Number of Bedrooms? Number of Bathrooms?
• Do you prefer an existing home or a new home? If you are interested in new construction, be sure to check out the Vacation Properties link. Not all communities are listed, but this will help give you an idea of what Central Florida offers. If you do not see something that interests you, please e-mail me so I may speak with you personally about your needs! If you are interested in an existing home - be sure to check out the link "SURF the MLS" to look for homes in the Central Florida Area.

In Florida, REALTORS® are licensed by the state. I am a licensed REALTOR® and a member of a local board of REALTORS® which allows me access to the Multiple Listing System (MLS). The MLS is a web-based system that lists nearly all properties currently for sale in the Central Florida area. This gives me the ability to search for properties using the features you are looking for in a new home. For example: Square footage, number of bedrooms, bathrooms, location (vicinity to Disney and the Parks), etc.

Whether you decide to purchase an existing home or a new home, you do not pay a commission, as the commission is either paid by the seller or the builder.

It is important that before you begin searching for a home that you know what you can afford. This can save you a lot of time as you begin looking for properties. As a non-resident of the United States you must put a minimum 30% deposit if you wish to apply for a US Mortgage. There are a several types of loans (for example: stated income, no-documentation, full documentation) that you can apply for.

For example when applying for a US Mortgage you will need to have available:

• Copy of passport and/or VISA
• 2 most recent pay slips and 2 years tax returns or P60’s
• Letter from employer stating last 2 years of gross earnings.
• For self-employed – accountants letter showing 2 years of gross income year to date.
• Current annual mortgage statement in the UK to prove payment history
• 3-6 months of most recent bank statements form the account that the funds will be coming from.

Additional documentation may be required due to the type of loan you are applying for. A qualified lender or loan officer will discuss this when applying for the loan and discuss the qualifications for the different loan programs.

There are several companies that I have worked with on past transactions, which would be more than happy to speak with you personally. Just call or e-mail me and I can provide you with their contact information.

After reviewing your decision to buy and the features you are looking for in your new home, we can begin searching for properties. This can be done a number of ways depending on your comfort level. Information can either be sent via the internet/email, or if you are planning a visit we can schedule an appointment, and arrange site visits of various properties that fit your specific needs. After viewing properties, you will begin to find out what is important to you which will help you in narrowing your search in finding your home!

If you are purchasing a home that is listed by another REALTOR® (i.e. an existing home) then a contract for sale and purchase would be prepared and submitted to the seller. It is not uncommon to receive a counter-offer. This would start the negotiation process. You then would decide to accept the counteroffer, submit your own counter-offer, or reject the counter-offer and move on. It is recommended to discuss prior to making an offer your limits and financial budget. The contract becomes effective after all parties have signed the contract. Typically closing for resale’s can take 30-60 days after the effective date.

If you are purchasing a new home, the builder will prepare the contract for sale and purchase. Deposit requirements vary depending on the builder.

If you are waiting for your new home to be built, I will take pictures once a month and e-mail them to you. I have done this for my customers in the past, and it has been exciting for them to see the progress of their new home!

Many times this is overlooked and can be the cause of many problems. It is required to have a US bank account in order to receive a US Mortgage. There are many banks that work with oversea customers and are familiar with the needs and requirements in opening a bank account. I can assist you by providing contact information of some local banks.

When purchasing a new home, your closing date will be scheduled by the builder and you should be notified about one month prior to that date. When purchasing a resale the closing date is determined by what was agreed in the contract. There are few additional items that need to be addressed prior to closing:

• A Homeowners Insurance policy must be in place before you close. You will need to contact an insurance agent and request that a policy be drawn up for your property. There are a few basic questions that you will need to answer. You will then have to sign and pay for the policy before it becomes active.
• You will also need to be sure that your money for closing has been transferred over to your US bank account. Be aware that it may take up to four business days for the wired amount to reach your US account.
• Stay in close contact with your mortgage company and inform them of the date of the closing. If there is any additional information that is requested of you from the lender, you will want to be forthcoming and send required documents over as quickly as possible so as not to delay your closing.
• Contact your furniture company, informing them of your closing date and pay any outstanding balances to allow for a quick installation time.
• Finally, now is the time to finalize your agreement with a management company, to get everything in order for the management and rental of your property. You will want to be sure that all of the required documents are signed and that your initial deposit has been made.

Closing can either take place in person, or via FEDEX/UPS. The title company will arrange the closing, whether you purchased a new home or a resale.

If you close via mail – you will need to schedule an appointment with a notary to notarize the documents. Not all solicitors (attorneys) are notaries – so you will need to be sure when you speak to them that they are in fact a notary. Here is a website that you can check out local notaries in your area: www.facultyoffice.org.uk

You will incur closing costs which were discussed at the time of loan application with the mortgage company. This will include Government Taxes, Title Registration, Mortgage Registration, Title Insurance, and any other fees applicable to the transaction. You are often required to contribute toward a mortgage escrow for taxes and insurance. This contribution will be applied to taxes and insurance in the future. A full statement of costs detailing the purchase price, mortgage, fees, etc., will be issued to you.

Please be aware that your closing documents are dated and extremely time sensitive. It is a valuable lesson to ask any questions that you may have and be sure that you understand the process and what is expected of you. This will make your closing process a simple one.

Once all the documentation is signed and notarized and money has transferred hands, the keys are handed over and you become the proud new owners of a home in FLORIDA!

As a foreign investor you will be essentially running a small business in the USA, you will need to file a tax return and for a tax identification number. This is called a non-resident tax returns (form1040NR). You can do so yourself by downloading the forms at www.irs.gov and submitting them to the appropriate address.

The alternative is to have an accountant file all the paperwork on your behalf. Many hire an accountant so they are confident that the filing is done correctly. You will want to hire an accountant that has a good understanding of both UK and US tax issues.