Buyers Guide
Buying a home in Northeast Florida
Tips for first-time buyers, how mortgages work, a payment calculator and a checklist for the neighborhood you have in mind. This is general information, not legal, tax or lending advice.
Checklist for your neighborhood
Pick a neighborhood. The list adds items based on recent MLS records there, like how many homes report an HOA and how old homes typically are.
Not sure yet? Browse the neighborhood directory first.
First-time homebuyer tips
Tip 1
You may count as a first-time buyer
Many programs treat you as a first-time buyer if you have not owned your main home in the past three years, even if you owned one before.
Tip 2
Check your credit early
Pull your free credit reports at AnnualCreditReport.com and fix errors before you apply. Your score affects both approval and your rate.
Tip 3
Budget for more than the payment
Plan for closing costs, moving, insurance, HOA or CDD fees, utilities and upkeep. Keep savings for repairs after you move in.
Tip 4
Ask about down payment help
Florida Housing Finance Corporation and some counties and cities offer first-time buyer loans and down payment assistance. Ask your lender which ones you qualify for.
Tip 5
Sign a buyer agreement you understand
You will sign a written agreement with your agent before touring homes. Read how your agent is paid and how long the agreement lasts.
Tip 6
Use your inspection period
Order inspections, insurance quotes and any HOA or condo document review right away. Most contracts give you a short window to back out or renegotiate.
Tip 7
Keep your finances steady until closing
Avoid new credit, large purchases or job changes until you close. Your lender may check again just before closing.
Tip 8
Verify wiring instructions by phone
Before you wire money, call your title company at a number you already know. Scammers send fake wiring emails during closings.
Tip 9
Do a final walkthrough
Visit the home right before closing to confirm agreed repairs were made and nothing has changed.
Mortgage basics
What your payment includes
Principal and interest repay the loan. Property taxes and homeowners insurance are usually collected with your payment through an escrow account. Mortgage insurance, HOA dues and flood insurance can add more.
Rate versus APR
The rate sets your monthly interest. The APR also counts lender fees and points, so it is the better number for comparing offers. Get Loan Estimates from more than one lender on the same day.
Points and locks
You can pay points at closing to lower your rate. A rate lock holds your rate for a set time while you close.
Closing costs
Expect lender fees, title insurance, prepaid taxes and insurance, and Florida's documentary stamp tax (35 cents per $100 of the loan) and intangible tax (0.2% of the loan). Your Loan Estimate lists them.
Florida homestead exemption
After you buy your main home, apply with the county property appraiser by March 1 of the following year. The homestead exemption can take up to $50,000 off the taxable value, and Save Our Homes caps yearly increases in assessed value.
Common loan types
Conventional
As little as 3% for some first-time buyers
Mortgage insurance is usually required below 20% down and can be removed once you reach enough equity.
FHA
3.5% with a 580 or higher credit score
Easier credit rules, with upfront and monthly mortgage insurance.
VA
No down payment for eligible veterans and service members
No monthly mortgage insurance. A one-time funding fee applies unless you are exempt.
USDA
No down payment in eligible areas
Income limits and location rules apply. Some outlying parts of Northeast Florida qualify.
Loan rules and limits change. Your lender will confirm what you qualify for.
Payment calculator
The rate shown is only an example. Use the rate from your lender's Loan Estimate.
Principal and interest
$2,275/month
Loan amount
$360,000
Down payment
$40,000
Property taxes, homeowners and flood insurance, mortgage insurance, HOA dues and any CDD fee are not included and can add a lot to your monthly cost.