From Renter to Buyer……….

The Road to Home Ownership

Welcome! This page is dedicated to giving buyers, new or experienced, complete information on the home buying process in Florida. Specifically in Northeast Florida. Crazy as it seems, not all of Florida does things exactly alike. Customary costs and contracts are just a couple things done a little differently. I’ve set this page up to go through the process in sequence to give you a step by step approach. At any point you have questions or are ready to start the process yourself, reach out either by email: pam@pamgraham.com or call/text +1 (904) 910-3516. To get to specific sections faster, click the link in the table of contents below this paragraph.

The Home Buying Process

Road to Closing

Here’s a free pdf booklet called Your Home Loan Toolkit, which details the steps involved in getting a loan to buy a home. From getting the best mortgage for your situation to closing costs to even info on being a home owner.

The Players

There are many people involved in a real estate closing. Here are some and a brief description of how they come into play.

• Lender– Basically the money person. They will work with you to get you the best terms and interest rate based on your credit and financial picture. Besides your agent, you will probably speak to them more than anyone else during your transaction.
• Agent– Obviously I can go into a lot of detail, but I will try to hold back some. 🙂 We are like the facilitator of the transaction, making sure every piece gets completed. We show you homes, based on your criteria, write the offer so that it is a win for you. Make sure the offer reflects what financing you’re doing. We negotiate on your behalf, meet the inspector, coordinate with the listing agent, your lender and title company. We make sure timelines are met and that no detail is missed. I also make sure I check my ego at the door and that I am respectful to every single person who is involved in the transaction. This helps in the event something goes off the tracks, which can happen from time to time.
• Inspector– They do the home and WDO inspections.
• Appraiser– Their job is to show what the market value is to your lender. They visit the house, take pics and measure. They write up a report to show homes that are active, under contract and have sold in the past 6-12 months, similar to the house you’re buying. There is no science to this, but more like an art.  While there are certain guidelines involve, if you had 3 appraisers appraise the same house, chances are there would be 3 different values.
• Underwriter– They are part of the lending team, but I mention them separately, because their job is important. They’re the ones who go through your file with a fine tooth comb, to make sure you and the property meet the lender’s guidelines. They will be the ones, who will give the clear to close or say hold up, we need more paperwork.  Or, even say file denied. Don’t let that scare you tho, your loan officer goes by their guidelines and sends them a file that should not be denied. Check out this post that talks about why a loan gets denied at the last minute.
• Title Company/Attorney’s Office– They handle the closing. In Florida we can use a title company or a real estate attorney. They coordinate with the agents, lender, surveyor to make sure we have a smooth sailing closing. They take care of having title insurance drawn up and for recording the deed after you close. Most of the time the closing is at their office. They will go over all the paperwork that you will be signing and getting it over to the lender. This is when you get the keys to your new home.
• Surveyors– they come out to the property and stake your property lines, showing it by flags at the property and on paper for your records.

Types Of Loans

There are quite a few different types of loans to choose from. I’ve broken down some of them here, so you can get an  idea what’s out there.

VA– A VA loan makes home ownership more affordable for qualified U.S. veterans, thanks to no-money-down options and favorable terms. VA home loans are provided by lenders, and the VA guarantees a portion of loans for veterans so they can qualify for an attractive financing package. The Veterans Benefits Administration (VA) provides this benefit to qualified veterans to finance a home purchase, and there are several VA loan programs to choose from. If you feel this is the best option for you, feel free to reach out to Debbie Frazer with Coast2Coast Mortgage. 

Conventional– A conventional loan is a mortgage that is offered by private lenders and is not guaranteed or insured by a Government agency. No upfront private mortgage insurance, some can be zero down up to 20% down. (no pmi for 20% down). Most properties accepted, so usually no lender required repairs.

FHA– Backed by the Federal Housing Administration (FHA). Is great for buyers with lower credit scores or poor credit history, first-time homebuyers or buyers with limited savings for a downpayment and low to moderate income buyers. 3.5% down plus closing costs, which both can come in the form of down payment assistance programs, gift money or a seller credit.

USDA- This one always makes me think of beef, hopefully I’m not the only one. 😆 This is 100% financing for rural areas. So for example, most properties in Middleburg would qualify. They have a map that you can check a particular property’s eligibility.

Home Program by BBVA Compass-This program offers no money down, plus the lender pays some of the closing costs. It’s possible to only have to have $500 plus inspections fees to close on a home. Find out more here.

Down Payment Assistance in Florida– Florida housing offers a variety of programs to help buyers with dowen payment and closing costs. The popular one right now is the HHF 15k. This program can be used for down payment or closing costs. The bueaty of this program is 20% of the 2nd lien is forgiven each year. After 5 years, it is fully forgiven as long as you stay in the home. For Clay County click here. For Duval County click here.

From Pre-Approval to Contract

Closing Cost- Unfortunately there are closing coast involved when buying a home. If you are paying cash, they are a lot less. If you’re utilizing a loan to buy your home, there are costs the lender charges and to also record the note at the clerk of courts the house is in. Hey, I wrote a blog post breaking down what closing costs you will potentially see. Click here to check it out.

How To Get your offer accepted in a seller’s Market- Right now we are still experiencing a seller’s market, especially in price ranges under 200k, so you really need to make your offer stand out. Here are some tips:

• Be pre-approved!! Have the letter ready to send in with your offer. If you’re paying cash, have proof of funds.
• If you do not need to have the seller pay your closing costs, then pay them yourself.
• Don’t add a bunch of conditions to the contract.
• Writing a personal letter to the seller telling them why you love their home can help.
• Have an agent who plays well with others and writes a clean contract.
• If the seller is still living in the house, it is a great idea for your agent to find out from their agent what is important to them. Write your offer around that if possible.
• In a seller’s market it can be difficult, if not impossible. to get a “deal.” Low balling may not be the way to get a home.

From Contract To Closing

Binder- Also known as earnest money. This is money you pay when your contract is accepted to show “skin” in the game, or some seller’s view it as good faith to show you’re serious about purchasing their home. Depending on the price of your home you can expect to put down $500-$1,000 or more.  This will be applied as a credit at closing to go towards what you will owe. In the event of a fall through, in some circumstances, it could be refunded to you.

Home Inspection- This happens within 10 days after acceptance of your contract. They check all the major systems, windows, caulking, and much more. I go in more detail in another blog post on home inspections.

WDO Inspections-This is a separate inspection than the home inspection, but some home inspectors can do both. With this inspection, the goal is to check for termites or other wood destroying organisms. Also, to see if there is any damage from any of those too, in the form of rotted or soft wood. Holes or tunnels.

Home Warranty- This is something you can buy to start covering specific systems in your new house. HVAC and hot water heater are a couple examples. I go in more detail in another post, including sharing a few different companies that offer a home warranty. Click here to read more.

Title insurance- Title insurance offers protection to you and/or your lender from previous claims or prior rights that another party may have to the property, including any unsettled debt of previous property owners. Moreover, title insurance is centered around a public records search, which is estimated to establish the status of the title at the time the property was purchased. On the occasion that your title is challenged by another party, your title insurance underwriter will defend your title and pay any and all related costs and losses in property value that occurs, up to your title insurance policy limit.

Survey- this marks your property lines, plus where your house sits on the land. If there’s any sheds or HVAC outside system at the time the survey is completed, you will see it on the hard copy you receive at closing. This is usually done within 10 days before closing, usually less than that. They also use flags at the property to mark the boundaries. Some lenders require one to be done. It’s good to have so you can show fence or pool companies if you decide to install either one.

Working With An Agent

How an agent gets paid– Guess what? I wrote a blog about that too. Check it out here.

What our job is–

If you need an agent to call your own, I can be reached at pam@pamgraham.com or call/text: +1 (904) 910-3516.

Local Information

Schools-

• Clay County Public Schools
• Duval County Public Schools
• St Johns County Public Schools

Tax Office

• Clay County Property Appraisers
• Duval County Tax Collector
• St Johns County Property Appraiser

DMVs

• Florida DMV

City Information

• Clay County Government
• City of Jacksonville
• St Johns County Government

Homes For Sale in Northeast Florida