Home Buying Guide

Choosing an experienced Real Estate Advisor is an important first step since they will provide you with valuable resources to move forward with your purchase decision. At Driftwood Realty Group, our Advisors have access to experienced mortgage lenders to provide competitive rates to ensure you start shopping in a price range you’re comfortable with.

There are two ways to purchase a home: cash or finance. If you choose to pay cash, you’ll need to provide proof of funds that you can shop in the price range you are looking. If you are financing, your Advisor will have relationships with lenders who specialize in different loan programs, like first-time-home-buyers, conventional, VA, or jumbo loans and will guide you to the best product for you.

Often a 15-20 minute conversation with a lender about your financial status and credit and payment history will give enough information to provide a “pre-qualification” letter. This will let you and your Advisor know what price range you should shop in. It’s important that your Advisor share the estimated taxes, HOA, and CDD fees in the market you’ll be searching, so that they can calculate in the monthly mortgage payment you can afford.

After submitting all required documents, your social security number for credit files, and a thorough review by a mortgage underwriter, you will be issued a “pre-approval” letter. Many lenders now have an upfront underwriting procedure that helps the process move more smoothly and quickly. This pre-approval letter, along with the offer to purchase a property by your Advisor, shows your borrowing power and that you have the ability to go through with a purchase.

An experienced Advisor will have relationships with mortgage brokers to help guide you to the right financing product for you. It’s the lender’s job to quote daily rates for different products. Your Home Advisor will not need your personal financial information, only the letter form the lender that shows your price range to shop in. Your Advisor will be your personal shopping guide with market knowledge in the area you are choosing.

After determining your budget, it’s time to begin searching for homes. Be realistic by identifying your wants versus your needs before beginning your search. Make a list of the features and benefits you want in a home. Consider things such as pricing, location, size, schools, amenities and design.

Your Real Estate Advisor will be your guide on the scavenger hunt to find the perfect one! Avoid looking at too many homes in one day, or have an organization system to make notes with your Advisor. After a long day of looking at more than five houses, they all start to run together. If you already have an area narrowed down, be sure to choose an Advisor with experience in that area.

Learn about the Community and homes in the surrounding area before you invest. Refer to the Communities section for more information.

When an advisor knows the area you’ve narrowed your choices to, whether they live there themselves, or sell a lot of homes in the area, they know the proper market prices. They’re often familiar with the inventory, agents who work in the market (for a smooth transaction), and have inside information about homes coming on the market or seller motivation. All of these things will help position you as the buyer to have strong negotiating power.

Before making an offer on the home you’ve chosen, it’s important that your Advisor knows specific details to position your offer. Some of these details include:

Once you’ve chosen a home, your Advisor should contact your lender to run more accurate financial projections on that property and prepare a pre-approval or pre-qualification letter to present with your offer. Your Advisor will write a NEFAR (Northeast Florida Association of Realtors) Contract for Purchase and Sale Agreement, presenting your offer and terms in a way that gives you the best advantage.

Once your offer is accepted, your binder deposit will need to go into the sellers choice of escrow account, either a title company or an attorney will hold this money and credit it toward your closing costs at closing. You’ll be given a timeline to mark every stage in the process up to closing. Meeting these requirements on time ensures a smooth flow of negotiations so that each party in not in breach of their agreements. Your Advisor will keep you constantly updated so you will always be prepared for the next step.

Most NEFAR contracts have a 10 day inspection period (unless specified differently), to perform any inspections necessary for you, the buyer, to feel comfortable with the purchase. Your Advisor will have resources of inspectors including whole home, pest, roof, pool, septic, HVAC, plumbing, etc.. This is your due diligence period to also check for future property changes such as building a pool, barn, garage, dock, etc. and you are responsible for all inspection fees upfront, as the buyer.

Depending on the outcome of these inspections, on of two things may happen:

If financing, a Wood Destroying Organism (WDO) inspection (termites, and other insects) must be done and any damage must be repaired or replaced for certain loan programs. The timeline of this inspection and negotiation period are very important to the transaction. Your Advisor will be in touch with you every step of the way to provide assurance this process is adhered to.

It’s imperative that you keep in close contact with your lender, who will let you know when additional documents are needed to approve your loan application and fund your loan. If financing, a home appraisal will be ordered by your lender and paid upfront by you, as the buyer. The lender wants to be sure that the property is being purchased at true market value, so they will choose a licensed appraiser through a third party. If the home appraises, you and your Advisor have cleared another contract contingency and are very close to the finish line! If you’re paying cash for a home, an appraisal is recommended, but not required (as is the inspection).

Homeowner’s Insurance is often recommended by your lender or Advisor, or you can shop around for property insurance. Most lenders will require that you have a homeowner’s insurance binder (proof of insurance) before they will close the loan.

While you and your Advisor are crossing items off your list, the closing agent, often a title company, is conducting their own diligence to prepare to transfer the title of the property into your name or estate, as the buyer. They will contact you to discuss the best way to hold title. The closing Agent will also perform a title search, order a property survey (buyer expense at closing), and ensure there are no liens, encumbrances, or encroachments on the property and that it is free and clear to transfer. Many buyers also purchase title insurance with a one-time fee at closing. The closing agent is also responsible for obtaining prorated payoff’s for taxes, CDD fees, HOA dues, Association fees, etc.

Your trusted Home Advisor has gotten you this far, with resources, knowledge, and communication with all parties of the transaction smoothly. Prior to closing, you will have a final walk-through of the home you are buying. This is to make sure repairs (if any) were completed and that the house is in the same or better condition than when you made the offer.

This is the day you become a homeowner. Your loan documents will be delivered to the title company for signature in front of a notary, who is a closing agent or attorney. After signing all documents, the sellers receive the remainder of the payment from the closing attorney and you will be handled the keys!

With a Driftwood Realty Group Advisor, their role doesn’t end at the closing table. Please consider your Advisor for all things real estate, including setting up utilities, and referring to friends, family, and neighbors the value of having them by your side. Visit the Driftwood Realty Group website often for monthly home maintenance checklists, helpful homeowner blog posts, and be sure to leave a review for your Advisor, share their page, and join their social media sites. You’ll be hearing from them regularly to ensure your move is smooth and if you have any further questions.

Professionalism, knowledge, integrity, and commitment are all aspects of offering the absolute best as Real Estate Advisors. Driftwood Realty Group’s experienced marketing team works with your Advisor to ensure that you always receive the excellent service you expect and deserve. Lets get started on formulating your strategic plan.