Before you look at a single property, get pre-approved — not just pre-qualified — by a lender. A pre-approval letter tells sellers you're serious, gives you a firm budget to work within, and in Miami's competitive market, it's often required before a listing agent will even schedule a showing.
A lender will review your income, assets, debts, and credit score to determine how much they'll lend. This process typically takes 1–3 business days. Shop at least 2–3 lenders to compare rates and terms — even a 0.25% difference in rate can mean thousands of dollars over the life of your loan.
What to bring your lender
Last 2 years of W-2s or tax returns (self-employed: 2 years of business returns)
Last 30 days of pay stubs
Last 2–3 months of bank and investment account statements
Photo ID and Social Security number
List of current debts (car loans, student loans, credit cards)
Miami Note: If you're buying a condo in Miami-Dade, your lender will also need to review the condo association's financials. Many condo buildings are non-warrantable (not Fannie/Freddie approved), which limits your mortgage options. Ask your lender early.
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Step 2
Search for Your Home
Now the fun begins. With your pre-approval in hand and a clear budget, your agent will help you identify target neighborhoods, set up MLS alerts for new listings, and schedule showings. In Miami-Dade, the market can move very fast — desirable homes in areas like Palmetto Bay, Pinecrest, and South Miami often receive multiple offers within days of listing.
Be clear with your agent about your must-haves versus nice-to-haves. Flexibility on cosmetic issues (paint colors, dated fixtures) opens up more opportunity. Inflexibility on structural essentials (roof age, HVAC, lot size) protects you from costly mistakes.
What to consider in Miami-Dade
Flood zone designation — check FEMA flood maps before falling in love with a property
Insurance cost estimates — get a quote before making an offer, not after
HOA fees and rules — some Miami communities have restrictive HOAs with significant monthly fees
School zoning — verify boundaries directly with Miami-Dade County Schools
Commute patterns — test the drive at your actual commute time, not on a Sunday
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Step 3
Making a Competitive Offer
When you find the right home, your agent will prepare a written purchase offer (the FAR/BAR AS-IS contract is standard in Florida). The offer includes your proposed purchase price, earnest money deposit, desired closing date, contingencies, and any personal property you're requesting (appliances, fixtures, etc.).
In competitive markets, sellers look at more than price. A strong offer also has a substantial earnest money deposit (typically 1–3% of purchase price), a short inspection period (10–15 days in Florida), a realistic closing timeline (30–45 days), and a clean pre-approval letter from a reputable lender.
Offer strategy tips
Review comparable sales (comps) with your agent to anchor your offer price to market data
An escalation clause can help in multiple-offer situations without overpaying upfront
A personal letter to the seller can sometimes make a difference — especially on family homes
Waiving contingencies speeds up acceptance but increases your risk — discuss with your agent
Florida Standard: Florida contracts are typically AS-IS, meaning the seller makes no warranty about condition. Your protection comes from the inspection contingency — which you should almost never waive on an older home.
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Step 4
Under Contract — What Happens Next
Congratulations — your offer was accepted! The fully executed contract kicks off a series of deadlines. In Florida, the buyer's earnest money deposit (typically due within 3 days of execution) is held in escrow by the title company or brokerage. You'll also need to formally apply for your mortgage loan within a few days of going under contract.
Your agent will manage the timeline for you, but you should be aware of the key deadlines: inspection period, loan application, appraisal, loan commitment, and closing. Missing these can jeopardize your deposit or your deal.
Under contract checklist
Submit earnest money deposit to escrow within the contract deadline
Submit complete mortgage application immediately
Schedule home inspection within your inspection period
Review HOA documents (if applicable) within the HOA review period
Begin shopping for homeowner's insurance — required by your lender before closing
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Step 5
Home Inspection
The home inspection is one of the most important steps in the process. A licensed inspector will spend 2–4 hours examining the property — roof, foundation, HVAC, plumbing, electrical, appliances, and more — and provide a detailed written report. This gives you a complete picture of the home's current condition.
In South Florida, pay close attention to the roof (age and condition matters enormously for insurance), the AC system (South Florida AC units work very hard and have shorter lifespans), wind mitigation features, and any signs of water intrusion or mold. If the inspector flags significant issues, you can negotiate repairs, a price reduction, or seller credits — or walk away entirely within the inspection period.
South Florida inspection priorities
Roof age and condition — roofs over 15 years old can be very expensive to insure or replace
Wind mitigation inspection — this separate report can significantly reduce your insurance premium
AC age and condition — units in South Florida typically last 10–15 years with heavy use
WDO (termite/wood-destroying organism) inspection — often required by lenders
4-Point inspection — required by many insurers for homes over 25 years old
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Step 6
Appraisal and Loan Final Approval
Your lender will order an appraisal — an independent valuation of the property by a licensed appraiser. This protects the lender by confirming the home is worth what they're lending you. If the appraisal comes in below your agreed purchase price (a "low appraisal"), you'll need to negotiate with the seller, make up the difference in cash, or in some cases, walk away.
While the appraisal is in process, your lender is also completing their final underwriting review — verifying all your documentation one final time. Do not make any large purchases, open new credit accounts, change jobs, or move money between accounts during this period. These actions can derail your approval at the last minute.
Important: From the time you go under contract until closing, avoid any financial changes. No new car loans, no new credit cards, no large deposits without paper trails. Your lender may re-pull your credit just before closing.
Closing costs to budget for
Cost Item
Typical Amount
Loan origination fees
0.5%–1% of loan
Title insurance (owner's policy)
~0.5% of purchase price
Title search and closing fees
$800–$1,500
Appraisal fee
$500–$800
Home inspection
$350–$600
Homeowner's insurance (1st year)
Varies widely in FL
Property tax escrow (prepaid)
2–3 months
Recording fees
$150–$300
Total estimate
2%–4% of price
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Step 7
Closing Day — You're a Homeowner!
The day before or morning of closing, do a final walkthrough of the property to confirm it's in the same condition as when you made your offer and that any agreed repairs have been completed. Then it's off to the title company's office to sign — there will be quite a few documents.
At closing, you'll sign your loan documents and the deed transfer, pay your remaining closing costs and down payment via wire transfer or certified check, and receive your keys. The title company will record the deed with the county, and the home is officially yours.
Closing day checklist
Complete final walkthrough within 24 hours of closing
Confirm wire transfer details directly with the title company by phone (never by email alone — wire fraud is real)
Bring valid photo ID to the closing table
Confirm utilities are transferred to your name for the date of closing
Change locks on closing day — always
International Buyers
Buying in Miami From Abroad
Miami is one of the top destinations in the world for international real estate investment. Foreign nationals can legally purchase property in the U.S. — but the process has important differences from a domestic purchase. Here is what you need to know.
Ownership Rights
Can a Foreign National Buy Property in Miami?
Yes — there are no restrictions on foreign nationals owning real estate in Florida. You do not need to be a U.S. citizen, permanent resident, or even hold a visa to purchase property here. Foreign individuals, corporations, and trusts can all legally own U.S. real estate.
Miami-Dade is one of the most internationally active real estate markets in the country, with buyers regularly coming from Latin America, Europe, Canada, the Middle East, and beyond. The process is largely the same as for domestic buyers — with a few critical extra steps around financing, taxation, and legal structure.
Who buys in Miami from abroad
Primary residence buyers relocating to South Florida
Investors seeking rental income from long-term or short-term tenants
Buyers seeking a vacation home or second residence
Family members buying for children attending school in Miami
Buyers diversifying wealth into U.S. dollar-denominated assets
Financing
Getting a Mortgage as a Foreign National
Financing is available to foreign nationals, but it is more limited and more expensive than for U.S. residents. Most foreign national mortgage programs require a larger down payment — typically 25–40% — and charge slightly higher interest rates to compensate for the additional underwriting risk. You will also need to document your income and assets, often in translated and notarized form.
Many international buyers in Miami purchase with cash, which simplifies the process significantly and makes your offer more competitive. If you do need financing, work with a lender that specializes in foreign national loans — Umar can refer you to trusted lenders with experience in this area.
Foreign national mortgage requirements
Passport and visa (or proof of legal entry status)
ITIN (Individual Taxpayer Identification Number) — required in place of a U.S. Social Security number
Proof of income: bank statements, employment letters, or business financials (typically 12–24 months)
Down payment of 25–40% depending on lender and loan program
U.S. bank account (most lenders require one before closing)
Credit history — some lenders accept international credit reports; others require a larger down payment in lieu
ITIN: An Individual Taxpayer Identification Number (ITIN) is issued by the IRS to foreign nationals who need to file U.S. taxes or open financial accounts. It is not a visa or work authorization — it simply identifies you for tax purposes. Your tax advisor or a CPA can help you apply. Some lenders will work with a passport alone for very large cash purchases.
Tax — FIRPTA
FIRPTA: The Most Important Tax Rule for Foreign Buyers
FIRPTA — the Foreign Investment in Real Property Tax Act — is a U.S. federal law that requires a buyer to withhold 15% of the gross sale price when purchasing property from a foreign seller. This is not a tax you pay when you buy — it is a tax the next buyer will withhold from you when you eventually sell.
For example: if you buy a property today for $1,000,000 and sell it in 5 years for $1,400,000, the buyer will withhold $210,000 (15% of $1,400,000) at closing and send it to the IRS on your behalf. You then file a U.S. tax return and receive a refund of any amount withheld above your actual tax liability. Working with a U.S. CPA who specializes in international real estate is essential to manage this correctly.
Key FIRPTA facts
The 15% withholding is based on the gross sale price — not your profit
The withholding can be reduced or eliminated by applying for a withholding certificate from the IRS before closing
If you sell for $300,000 or less and the buyer intends to use it as a primary residence, FIRPTA withholding is reduced to 10%
Holding the property in a U.S. LLC does not avoid FIRPTA if you are the foreign owner of the LLC
A CPA files IRS Form 8288 and 8288-A on your behalf to reconcile the withholding
Tax — Rental Income
Taxes on Rental Income and Investment Properties
If you rent your Miami property — whether long-term to a tenant or short-term on Airbnb/VRBO — the rental income is subject to U.S. federal income tax. Foreign investors have two options for how this income is taxed, and choosing the right one can make a significant difference.
By default, the IRS withholds 30% of gross rental income from foreign owners. However, if you elect to treat rental income as "effectively connected income" (ECI) by filing a U.S. tax return, you are taxed on your net rental income (after deducting mortgage interest, property taxes, depreciation, management fees, and repairs) at regular U.S. income tax rates — which is almost always more favorable.
Investment property considerations
Hire a U.S.-based property management company — they handle tenant relations, maintenance, and rent collection remotely
Short-term rentals (Airbnb) in Miami-Dade require a local license and are subject to county tourist development taxes
Depreciation deductions can significantly reduce your taxable rental income — a CPA will structure this for you
Florida has no state income tax, which benefits rental income compared to most other U.S. states
Rental income must be reported annually on a U.S. tax return (Form 1040-NR for non-residents)
Legal Structure
How to Hold Title: Personal vs. LLC vs. Trust
How you hold title to U.S. real estate as a foreign national has significant implications for taxes, privacy, liability, and estate planning. This is one of the most important decisions you will make before purchasing, and it should be made with the guidance of a U.S. attorney and CPA who specialize in international buyers.
Common ownership structures for foreign buyers
Personal name: Simplest to set up. Subject to U.S. estate tax on the property value if you pass away (the estate tax exemption for non-U.S. persons is only $60,000 — compared to $13M+ for U.S. citizens). Not recommended for higher-value properties.
U.S. LLC: Provides liability protection and privacy (LLCs are not required to disclose members in Florida). Does not automatically avoid estate tax unless structured correctly, but gives more flexibility. Most common structure for investment properties.
Foreign corporation: Sometimes used but can trigger branch profits tax and is generally not recommended.
U.S. trust or foreign trust: Can be used for estate planning purposes but adds complexity. Requires guidance from a cross-border estate attorney.
Estate Tax Warning: Non-U.S. persons are subject to U.S. estate tax on U.S.-sited assets (including real estate) above just $60,000 — at rates up to 40%. This is the single most overlooked risk for foreign buyers purchasing in their personal name. Speak to a qualified attorney before closing.
Reporting Requirements
FinCEN Reporting: Cash Purchase Rules in Miami
The Financial Crimes Enforcement Network (FinCEN) requires title companies in high-risk markets — including Miami-Dade County — to report all-cash real estate purchases to the U.S. government, regardless of the buyer's nationality. This is part of the U.S. government's anti-money laundering (AML) efforts.
If you purchase in cash, your title company will collect information about the beneficial owner(s) of the purchasing entity and report it to FinCEN. This is a compliance requirement — not an obstacle — and your title company handles the reporting. You simply need to be prepared to document the source of your funds clearly.
What to prepare for a cash purchase
Bank statements showing the source of funds (typically 3–6 months)
Proof of how the funds were accumulated (salary records, business documents, property sale proceeds, etc.)
Wire transfer from your own account — third-party wire transfers are flagged and can delay or kill a deal
If purchasing through an LLC or company, documentation of all beneficial owners
All funds must be in U.S. dollars wired to the title company's escrow account
Practical Checklist
Your International Buyer Action Plan
Before you begin your property search in Miami, take these steps to set yourself up for a smooth transaction. The earlier you address these items, the faster you can move when the right property becomes available — and in Miami, speed matters.
Before you start searching
Consult a U.S. CPA who specializes in international buyers — understand your tax position before you buy
Consult a U.S. real estate attorney to determine the best ownership structure for your situation
Apply for an ITIN from the IRS (if you don't already have one)
Open a U.S. bank account — this is required for closing and for rental income deposits
If financing: speak with a foreign national mortgage lender and get a pre-approval or proof of funds letter
If purchasing cash: prepare your source-of-funds documentation
Establish a property management relationship if you plan to rent — especially if you won't be in Miami year-round
Umar works with international buyers regularly. He can connect you with trusted Miami attorneys, CPAs, lenders, and property managers who specialize in foreign national transactions — so you have the right team around you from the start.
Common Questions From Miami Buyers
From accepted offer to closing, the typical timeline is 30–45 days for a financed purchase. Cash buyers can often close in 2–3 weeks. The search phase before an accepted offer varies widely — some buyers find their home in 2 weeks, others take several months. Getting pre-approved before you start searching keeps you ready to move quickly when you find the right property.
It depends on your loan type. Conventional loans typically require 5–20% down. FHA loans allow as little as 3.5% down with a 580+ credit score. VA loans (for veterans) and USDA loans can require 0% down in eligible cases. A larger down payment reduces your monthly payment and eliminates PMI (private mortgage insurance) if you put 20% or more down.
Florida has among the highest homeowner's insurance rates in the nation due to hurricane risk, flooding, and a challenging insurance market. The roof is the single biggest factor — newer roofs (especially hip roofs with hurricane straps) can dramatically lower premiums. Always get an insurance quote before making an offer so there are no surprises. Wind mitigation and 4-point inspections can help reduce your premium.
Florida's Homestead Exemption reduces the assessed value of your primary residence by up to $50,000 for property tax purposes, saving most homeowners $500–$1,000+ per year. You must apply by March 1st of the year following your purchase through Miami-Dade's Property Appraiser's website. You must be a Florida resident and the property must be your primary residence as of January 1st of that year.
You are not legally required to use a buyer's agent, but it's strongly advisable — especially in a market as complex as Miami-Dade. A buyer's agent represents your interests, has access to the full MLS, and guides you through offer strategy, negotiations, and the transaction process. As of 2024, buyer's agent compensation is negotiated separately and disclosed upfront. Ask Umar about the current compensation structure — there are no surprises.
International Buyer Questions
Yes. There are no restrictions on foreign nationals owning real estate in Florida. You do not need a visa, green card, or U.S. residency to purchase property here. Foreign individuals, companies, and trusts can all legally own U.S. real estate. Miami is one of the most internationally active markets in the world — buyers from Latin America, Europe, Canada, and the Middle East purchase here regularly.
Yes, foreign national mortgage programs exist, but they require a larger down payment — typically 25–40% — and come with slightly higher interest rates than standard U.S. loans. You will need an ITIN (Individual Taxpayer Identification Number), proof of income and assets, and usually a U.S. bank account. Many international buyers in Miami purchase with cash, which is simpler and makes your offer more competitive. Umar can refer you to lenders who specialize in foreign national financing.
FIRPTA (Foreign Investment in Real Property Tax Act) is a U.S. law that requires the buyer to withhold 15% of the gross sale price when a foreign national sells U.S. real estate. It does not affect you when you buy — it affects you when you eventually sell. The withheld amount is sent to the IRS, and you then file a U.S. tax return to claim a refund of any amount above your actual tax liability. A U.S. CPA can apply for a withholding certificate before your sale to reduce or eliminate the withholding in advance.
This is one of the most important decisions for a foreign buyer and depends on your goals, country of residence, and the property value. Buying in your personal name is simple but exposes your estate to U.S. estate tax — non-U.S. persons only have a $60,000 exemption (compared to $13M+ for U.S. citizens), with rates up to 40% above that. A U.S. LLC is the most common structure for foreign investors — it provides liability protection, privacy, and flexibility. A U.S. real estate attorney should advise you on the right structure before you close.
Rental income from U.S. property is subject to U.S. federal tax. By default, the IRS withholds 30% of gross rents from foreign owners. However, if you elect to file a U.S. tax return and treat the income as "effectively connected income," you are taxed only on your net profit (after deducting mortgage interest, depreciation, repairs, property taxes, and management fees) — which is almost always a much better outcome. Florida has no state income tax, which is an advantage compared to other states. A U.S. CPA handles this annually.
Yes — many international owners manage their Miami properties entirely from abroad through a local property management company. A property manager handles tenant screening, lease agreements, rent collection, maintenance coordination, and compliance with local rental regulations. For short-term rentals (Airbnb/VRBO), a vacation rental manager can handle everything including guest communication, cleaning, and licensing. Umar can connect you with trusted property management contacts in the Miami area.
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Umar Samdani is a Licensed Real Estate Sales Associate (FL Lic. SL3657804) operating under the supervision of Xcellence Realty, a licensed Florida real estate brokerage. Samdani Realty is a personal marketing brand and does not represent an independent brokerage. All information deemed reliable but not guaranteed.