FLORIDA HOME BUYER'S GUIDE
Explained simply!
By Inna Moskalyk, Herron Real Estate
Where to Start
Start with a mortgage broker. A broker helps you compare loan rates across multiple lenders to find the best fit. Because a broker works for you rather than for any single bank, they're focused on securing the terms that make the most sense for your situation. You can also work directly with a bank or a credit union if you prefer.
The next step is getting pre-approved. During pre-approval, a lender reviews your finances — income, credit history, debts, and savings — and issues an official letter stating the loan amount you may qualify for. This letter shows sellers you're a serious, qualified buyer.
What you'll need for pre-approval:
- ▸Tax returns for the last 2 years
- ▸Bank statements for the last 2–3 months
- ▸Pay stubs for the last month
- ▸Social Security Number (SSN)
- ▸If you're self-employed — additional documents showing business income
The exact list depends on your situation and your lender's requirements — your mortgage broker will tell you what to prepare.
Down Payment
This is the amount you pay “out of pocket” when buying a home. The bank covers the rest through your mortgage.
How much do you need? It depends on the loan type:
| Loan Type | Down Payment | Note |
|---|---|---|
| Conventional | 3%–20% | Under 20% = monthly PMI |
| FHA | from 3.5% | Popular for a first purchase |
| VA | 0% | For veterans and military |
| USDA | 0% | Rural areas of Florida |
📌 Example: A home costs $400,000. At a 5% down payment you pay $20,000 upfront. At 20% — $80,000.
💡 Tip: Florida has down payment assistance programs (first-time homebuyer programs). Ask your broker — you may qualify.
Closing Costs
Closing costs are the fees and payments due at closing — typically 2% to 5% of the home's price.
What's included in closing costs:
- ▸Loan origination fee — the lender's charge for processing your loan
- ▸Appraisal fee — an appraiser's valuation of the home ($400–$700)
- ▸Title search and title insurance — confirming the property is legally clear of claims, plus coverage that protects your ownership
- ▸Home inspection — a professional assessment of the home's condition ($350–$700, depending on size and any specialized inspections)
- ▸Survey — a professional mapping of the property's boundaries
- ▸Prepaid items — advance payment of insurance, property taxes, HOA dues, and the first month's interest
- ▸Recording fees — the cost of registering the sale with the county
- ▸Realtor fees — buyer’s broker commission (if not paid by the seller), plus any brokerage transaction fee
Good to know: the appraisal and home inspection are typically paid up front, earlier in the process, rather than at the closing table.
📌 Example: For a $400,000 home, your closing costs could run $8,000 to $20,000 — on top of the down payment.
⚠️ Important in Florida: In our state, closing is usually handled by a title company or attorney. Florida also has doc stamps and an intangible tax on the mortgage — these are Florida-specific costs included in your closing costs.
What Happens After Your Offer Is Accepted
Your offer's been accepted — congratulations! From here, a series of steps takes you from signed contract to closing day. Here's what to expect.
Effective Date
Once both parties sign the contract, it becomes the effective date — and every deadline in your contract is calculated from that day forward.
Earnest Money Deposit
Within 1–3 days of the effective date, you'll submit an earnest money deposit — typically 1–2% of the purchase price — held by the title company or escrow agent. At closing, it's credited toward your purchase.
Home Inspection
During your inspection period (usually 7–15 days), a licensed inspector evaluates the home's major systems and structure — roof, foundation, electrical, plumbing, HVAC, and pests, among others. Based on the findings, you can request repairs, negotiate a credit, or, if the condition isn't acceptable, cancel within your inspection contingency.
Appraisal
Your lender orders an independent appraisal to confirm the home's value supports the purchase price. If it appraises below contract price, you'll typically renegotiate with the seller or cover the difference in cash.
Loan Processing & Underwriting
While your inspection is underway, your lender processes and underwrites the loan. Expect requests for additional documentation along the way — this is a routine part of the process.
Title Search
The title company examines the property's ownership history for any liens, judgments, or claims. Once it's clear, they issue clear title and the transaction can proceed.
Homeowner’s Insurance
You'll need a homeowner's insurance policy in place, effective on your closing date. Compare quotes from several carriers to find the best coverage and rate — and keep in mind that some areas in Florida require a separate flood insurance policy.
Clear to Close
When underwriting issues final approval, you'll receive your "clear to close." At least three business days before closing, your lender provides the Closing Disclosure — an itemized summary of your loan terms, monthly payment, and total cash to close. Your closing funds and down payment are sent to the title company in advance, typically by wire transfer a day or two before closing.
Final Walk-Through
In the 24–48 hours before closing, you'll do a final walk-through to confirm the home is in the agreed-upon condition, any negotiated repairs are complete, and nothing has changed since your last visit.
Closing Day
At closing, you'll sign your final paperwork at the title company (this typically takes about an hour). Once everything is signed and all funds are received, the keys to your new home are yours.
⚠️ Important: Until your loan officially closes, don't make any major purchases, open new lines of credit, or change jobs — any of these can jeopardize your financing.
Get the Complete PDF Guide
Download a printable copy of the Florida Home Buyer's Guide to keep with you throughout your home buying journey.
