Nothing quite compares to owning your own home or investing in real estate. In fact, for many, this is the single most expensive investment made in their lifetime. And Miami’s residential and commercial real estate markets have certainly experienced an incredible turn around and appreciation from just 4 to 5 years back. And yet, with real estate being one of the most ways to obtain a high return on investment, not all have the financial capacity to buy real estate for cash.
Many homebuyers turn to banks, private lenders and financial institutions for their residential and commercial loans. This can result in a long and complicated paper shuffling ordeal, with complicated financial information being requested and worse, having to provide an avalanche of documents to a lender to get approved for a loan. The result is loss of patience and often deals fall through or interest rate locks get lost.
Far worse is the idea that many borrowers take on these tasks alone. They have no idea what they are signing, what documents the lender is requesting and whether they are required to sign and comply. While there is absolutely no obligation in Florida to hire an attorney when obtaining a loan or buying or selling real estate, by engaging a real estate lawyer you can ensure that you have someone in your corner, a fiduciary, working for your best interests.
The Value of Hiring a Real Estate Attorney for a Loan Closing
Residential Loans
The procedure for closing a residential loan varies from lender to lender. Most lenders will require first and foremost a credit report, financial data such as employment and banking information and an appraisal of the property. By retaining an experienced real estate attorney to represent you from the very beginning of the closing process, you can ensure that you are purchasing a property which is free and clear of title defects and satisfies your investment objective.
You should prepare for your closing by consulting with your real estate lawyer to help you review all your closing documents to be sure everything is in order. Some of the primary closing documents are as follows:
The Mortgage Note
The Mortgage
The Closing Disclosure or Settlement Statement, commonly referred to as the HUD
Throughout the closing process your real estate attorney will review all the documents and explain each closing document to you before you sign them. And, if you have any questions, your attorney will answer them.
Commercial Loans
Commercial loans, though a bit more paper intensive, operate much the same way as the residential loans. Financial information is sought, credit is checked and then an appraisal is requested. Often, lenders will require that a company buyer be in business for a certain number of years and will require a personal guarantee if the borrower is a business entity.
Here are some of the requirements that you may need.
Operating Statements for the past 3 years reflecting income and expenses of operations
Copies of all Leases;
Rent Roll;
Tenant Estoppels signed by each tenant;
A lender’s title insurance policy with required endorsements;
A current Plat or Survey
A satisfactory Environmental Site Evaluation Report (Phase I Audit) and, if appropriate under the circumstances, a Phase 2 Audit, to demonstrate the property is not burdened with any recognized environmental defect; and
Site Improvements Inspection Report.
Jacqueline A. Salcines, PA
At the Law Offices of Jacqueline A. Salcines, PA, our real estate lawyers help business owners, individuals, buyers, sellers, tenants, landlords, and investors. We provide sound business advice to people and businesses looking to invest in real estate, real estate development, property management, lending, and property ownership. Our law firm represents individuals and businesses in South Florida, throughout Miami-Dade, Broward, Monroe and Palm Beach Counties in real estate matters.
Call us today for a free consultation.
We are always a phone call away. Tel. 305.669.5280
Or email us with your questions. J.Salcines@Salcineslaw.com
