Real Estate 103 – The Loan Process (Florida Version)

Now that you're prequalified or preapproved, let's dive into what happens next — because it's not just house-hunting from here on out. The loan process is where a lot of buyers get overwhelmed, and understandably so! But we’re going to walk you through the key pieces of it so you feel confident the entire way through.

What happens after preapproval?

Once you've been preapproved by your lender, you’ll typically start narrowing down homes and making offers. When an offer is accepted, the lender will kick off the official underwriting process — and this is where things get real.

During underwriting, your finances are examined in detail. Your credit, job history, bank statements, debts, and any large deposits will all be reviewed again — and this time with a magnifying glass.

What NOT to do during this process:

🚫 Don’t open or close any credit cards.

🚫 Don’t make any big purchases (no cars, furniture, etc.).

🚫 Don’t change jobs or quit without talking to your lender first.

🚫 Don’t co-sign for anyone else’s loan.

🚫 Don’t deposit large amounts of money into your account without a paper trail.

Even well-intentioned actions can delay or kill your deal. If you're unsure about something financial, ask your lender first.

Florida-Specific Loan Considerations

In Florida — especially in coastal and Panhandle areas — there are a few extra things lenders and insurance underwriters will want to know that may not come up in other states:

Hurricane Insurance: Most standard homeowners insurance policies do not include windstorm or hurricane coverage. If the property is in a designated wind zone, your lender will likely require you to obtain separate wind or hurricane insurance.

Flood Zones: Many Florida homes are in FEMA-designated flood zones. If the home is in a high-risk flood zone (Zone A or AE, for example), the lender will require you to purchase a separate flood insurance policy. Your agent can help check the FEMA maps or county GIS data to see if flood insurance will apply.

4-Point Inspections: For homes over 20 years old, most insurance companies in Florida will require a 4-point inspection before binding coverage. This inspection evaluates the roof, plumbing, electrical, and HVAC systems — and if anything doesn’t meet their standards, you may have to repair it before coverage can be approved (which can delay closing).

Roof Age & Condition: Florida insurers are strict about roof condition. Many won’t issue new policies if the roof is older than 15–20 years, especially on shingle roofs. If the seller can't provide a roof permit or inspection report, your lender may request one as part of underwriting.

These added steps mean it’s extra important to communicate with both your lender and your insurance provider early in the process. It’s also a good idea to budget extra time in your contract for insurance approval if the home is older or in a higher-risk area.

Title, Appraisal, and Conditions

Once you’re under contract, your lender will order an appraisal to ensure the property is worth what you’re paying. Simultaneously, a Florida title company (not an attorney in most cases) will open title and begin researching public records to confirm there are no liens, ownership disputes, or title defects.

You may also be asked to submit updated documents — like pay stubs or bank statements — so the underwriter can clear your file. These are called “conditions.” When all of your conditions are met and the appraisal and title work are clear, the lender will issue a “clear to close.”

That means you're almost there — just a few steps away from owning your new Florida home!

You're now ready to move on to Real Estate 104 – Your Agent & Touring Homes. Continue on if you're ready to keep learning, or keep an eye out for our next email!