This is an outline of the homebuying process in Florida. It’s intended to help you know what to expect and prepare for. It briefly covers getting a mortgage, looking for a home, making an offer, inspections, the appraisal and closing.
Get A Mortgage
Before you start your search for a new home, wouldn’t you like to know how much you can borrow and how much you can afford? By far the best option here is to talk to a mortgage loan company, there is no obligation at this stage. A lender evaluates your income, debt, and assets to determine your loan eligibility. They will explain the loan options available and make a recommendation based on your circumstances.
| Feature | Conventional | FHA | VA | ARM |
|---|---|---|---|---|
| Best For | Buyers with good credit and down payments. | Buyers with lower credit scores. | Eligible military members and veterans. | Buyers planning to move or refinance in 5–10 years. |
| Down Payment | As low as 3% for first-time buyers. | 3.5% (or 10% for credit scores 500–579). | 0% down payment required. | Varies (usually requires standard 3% to 20%). |
| Credit Score | Typically 620 or higher. | Typically 580+ (or lower with exceptions). | No set federal minimum, but 620+ is common. | Usually 620 or higher. |
| Mortgage Insurance | Private Mortgage Insurance (PMI) cancels automatically at 20% equity. | Upfront fee + monthly Mortgage Insurance Premium (MIP) usually for the life of the loan. | No monthly mortgage insurance; upfront VA funding fee applies. | Typically requires PMI if down payment is under 20%. |
| Interest Rate Type | Fixed (consistent payments for the life of the loan). | Fixed (consistent payments for the life of the loan). | Fixed (consistent payments for the life of the loan). | Adjustable (lower initial rate, then fluctuates with the market). |
The type of home you are buying will also affect the type of mortgage you can get. Things like insurance, taxes, HOA or condo fees will be factored in to this initial review. In order to make an offer on a home you’ll need a preapproval letter from the lender. This is just a letter stating they have done an initial review of your finances and you quality to puchase a home up to a certain value. This is your maximum home buying budget!
Lenders can be a credit union, a bank or a mortgage broker such as Capital City Home Loans. Credit unions are usually the cheapest in terms of fees and interest rates but can be difficult to work with, especially for a first time buyer.
Build Your Home Search Criteria
Build the home search criteria based on what’s important to you. The more detailed this is the better. It also helps if you tag each item as a must have or a nice to have. Consider the basics such as location, square feet, bedrooms, baths, garage and parking spaces. Other ideas are flood zone, age of home (older homes need more maintenance), size of yard, fencing, updates, are you willing to do some work on it, tub or shower, outdoor amenities, tile or vinyl or laminate floor coverings.
Home Search Tips
Searching online platforms is a good start, but combining your search with market data and local knowledge saves weeks of trial and error. I recommend working with a quality Realtor, yes, of course I’m biased! Discussing your requirements and budget with a Realtor will help identify specific neighborhoods and also help expectations on what is achievable and what may need to be compromised on. I have different approaches to helping buyers depending on the buyers’ specific circumstances.
Make an Offer on a Home
In Florida, offers are drafted on standard legal agreements (typically the Florida Realtors®/Florida Bar Contract).
Your offer outlines:
- Offered Purchase Price & Down Payment
- Earnest Money Deposit (typically 1% to 2% of purchase price)
- Inspection Period Duration (typically 7–10 days)
- Property Disclosures & Association Riders (HOA/Condo)
- Proposed Target Closing Date
Review it closely as it will become binding once accepted by the seller. Once submitted with your Pre Approval Letter or Proof of Funds, the seller can Accept, Counter, or Decline. Negotiating terms verbally through agents is common before finalizing the contract in writing.
Once the parties have final agreement, the changes will be made to the original sales purchase agreement and signed and initialed by both parties. Congratulations you are now under contract!
The Sales Purchase Contract
The signed and initialed sales purchase contract is the final agreement between the buyer and seller on the price and the terms of the purchase. It lays out the responsibilities of the buyer and seller to each other and timing for escrow deposits, applying for financing, inspection periods, applying to the HOA or Condo Association if needed, and closing. You are now in a binding contract, with contingencies, so make sure you know what needs to be done and when. I create a checklist of steps and dates for buyers I work with.
Earnest Money Deposit
There’s lots to do quickly when you first go under contract. One of the first items is to deposit the earnest money with the title company. This is the amount agreed to in the offer, often just 1% of the purchase price. For earnest money, title companies will usually take a personal check or wire, some will even take an online payment. They will issue you a receipt. Read more about earnest money deposits →
Inspection
Organize the inspection with enough time to allow the report to be produced and any negotiation on issues to take place. You will need a 4 point for insurance, a wind mitigation is recommended, and your lender may insist on a Wood Destroying Organisms (includes termites). There are any number of inspections you can have done from a general inspection to radon, water testing, mold and a whole host of others. You will need to decide what is important to you. Check this out for what to do if the inspection finds issues.
Apply for Financing
In the contract there is usually a date by which you have to apply for financing. This means uploading any documents required by the lender and signing their application form. This gives the lender the go ahead to start working on your application. The financing process is usually the longest activity in this whole process, so be sure to respond quickly to your lender’s questions or requests for additional documentation.
Appraisal
All lenders require an appraisal, which is an independent assessment of the home’s value. Most times a licensed appraiser will visit the home and produce a report of value for the lender. Sometimes, the lender may be OK with sending someone to just take photos and verify the home facts, other times they may just do a “desktop appraisal” which is an assessment of value based on their automated system. It will cost around $500 so my recommendation is to authorize the order after the inspection is done.
HOA and Condo Association Applications
If your home is a condo or has an HOA, there will be a process to go through with the governing body. Typically this is completing an application and paying a fee, and most times they will initiate a background and credit check. I recommend you get this in early as it can take up to 2 weeks to get a response. Part of the approval process may also involve an interview. This can be in person or Zoom call, and is usually a get to know you and an opportunity for you to ask questions.
HOA and Condo Association Documents
You have the opportunity to review key documents related to the HOA and Condo Association. This includes financials, board meeting minutes, milestone reports, SIRS reports, formation documents, rules and regulations. In these you’ll see the financial health of the community as well as deferred maintenance and past problems. These are a good indicator to whether or not there will be special assessments levied in the foreseeable future.
Read more on condo documents you should review before making an offer →
Clear to Close
At the end of their diligence the lender will give you a clear to close. This means they are wrapped up and ready to fund your loan. They have validated you can repay the loan, the home is worth at least the amount of the loan, you have insurance and the associations meet their requirements. Around the same time the lender will also give you the final Closing Disclosure showing cost to originate the loan, associated fees and monthly payments. This is a legal requirement and must be issued at least 3 days before close.
Final Walkthrough
A final walkthrough before close typically takes place the morning of close. It’s not a requirement but is highly recommended. The purpose is for you to ensure the home is in the same condition as it was when you made the offer. This means the landscaping and pool have been maintained, the home has been cleared and is broom clean, the appliances are still there and no major damage was caused during the move out.
Closing
Closing can take place either at the title company or remotely with a notary in a place of your choosing. At closing you’ll need to bring ID and will sign a pile of documents (if there’s a loan) as well as the deed and final closing statement. If you are closing remotely, the notary will bring all the documents you need to sign and transmit them back to the title company when you are done. Several days prior the title company will send you a draft closing statement with the final amount you need to wire to close. The lender will provide the amount of the loan directly to the title company on closing day. The buyer and seller can sign at the same or different times.
Once all parties are signed and the title company has all of the funds, you are closed. You can take the keys and start enjoying your new home!
There are a lot of steps and interdependencies in this process, and a Realtor can be invaluable in helping and advising. Things don’t always go smoothly! If you would like to see how I can help with your home search and purchase, or just have questions, contact me here.
How much cash do I need to buy a home in Florida →
Continue Planning Your Move
Explore the Buying a Home section of The Property Briefing for practical guidance on financing, inspections, making offers, condos, and the decisions that come before closing.
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