Cash or Finance

Whether you buy your new home with cash or finance you should be aware of the documentation you will require.

Proof of Funds

Having proof of funds is a key element in purchasing a property in Orlando. Whether you are buying with cash or financing the purchase, having proof of funds lets your realtor and the seller know that you are serious about buying a property.

Paying cash

Buying a property in Orlando with cash is by far the cheapest and easiest way to become the owner of a home in Orlando. Cash deals typically close in around 4 weeks but can close in just several days if all of the paperwork is in order

Apart from the short time to close on the property when paying in cash, the closing costs are also less, often 1-2% less than buying with a mortgage. This is simply because you will not have the added costs of raising finance and the fees associated with it.

The other benefit is that if your realtor can show the seller that you are a cash buyer it puts you in a strong purchasing position when compared to other buyers who may need to take out finance. Getting a mortgage is not difficult if you have your paperwork ready, but it does take time, typically up to 16 weeks and a seller can be reluctant to remove their property from the market for the sake of a few thousand more when there is a cash buyer ready to close immediately.

Foreign National Financing

Clients who are not citizens or legal residents of the U.S. should expect to make a down payment of at least 30% of the asking price in order to get Foreign National Financing in Florida. Depending on your nationality, credit and paperwork finance of 60-70% is typically available.

The lender needs to understand what they are lending on

Many U.S. lenders do not understand the vacation home market as to some degree the vacation home market is specific to the Disney area. They will walk you through the lending process and then decline your loan at the final underwriting stage because the property criteria does not fit their lending profile. It is of the utmost importance that you work with a lender who understands vacation home financing.

Before buying a property in Orlando, Florida we suggest that you understand some of the ‘ins and outs’ of being the owner of a vacation home.

We work with a number of mortgage professionals who specialize in Foreign National Financing. If you are serious about purchasing a property in Orlando, please get in contact and allow us to introduce you to one of our mortgage brokers. This way you will have a solid understanding of what you can afford, prior to viewing homes which are out of your budget. At this point you can decide on whether Cash or Finance is the best way forward.

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