The last few years in the Tampa Bay area housing market have been, to put it lightly, historic. Just looking at 5-year trends tells much of the story — with the median sale price of all home types shooting skyward from $225K to $425K.
Demand has stayed consistently high (“Very Competitive,” according to Redfin housing market statistics), and homes sell in an average of 9 days — with hot homes selling an average of 4% above list price and lasting only 4 days on the market. According to Rocket Homes’ August 2022 report, the area remains a seller’s market.
Despite the surge in market conditions, your need for a better home doesn’t just go away. When you’ve been thinking for years about upgrading, there’s no time like the present to make steps toward the home of your dreams. Even if it’s on your existing lot, the rewards are numerous — and worth it. As you read this, excited Domain Homes customers are in various stages of having their beautiful new homes built in all the most interesting neighborhoods around Tampa Bay.
Today more than ever, our flexible financing options work to your advantage, while our strong relationships with preferred lenders streamline the sometimes-daunting process from beginning to end.
Do you have questions when it comes to financing or the process for your new Domain home?
Keep reading, and we’ll break down how to finance your home with us!
What Is Home Financing?
In a market so volatile, home financing can seem tricky. We’re here to make it easier!
So, what exactly is home financing? It’s when you enlist the help of a bank or other lending institution to cover the cost of a home so you can buy it now, without having to save multiple hundreds of thousands of dollars. Since that amount is typically much more than most of us have handy, a mortgage is a mutually advantageous arrangement for the bank to directly pay that amount to the home builder all at once, up front.
Now, instead of owing the builder, you owe the bank — and (depending on the terms of your mortgage) you pay them back in monthly installments while enjoying your new life in your new home. With every payment you make, the bank collects principal (paying back the cost of the home itself), escrow (funds that the bank uses for payouts such as annual property tax) and also interest (paying the bank itself for these services).
What you want to do is pay as little interest as possible. That’s where securing a good (low) interest rate comes in. The interest rate you pay on your mortgage can depend on your credit rating, the financial market at the time, and other factors.
Some mortgages offer fixed rates, making it easier to budget your monthly expenses. Others have rates that fluctuate upward or downward with the ever-changing markets.
Whether you’re a first-time homebuyer or you’ve been down this road before, we want to give you flexible financing options to best suit your needs.
Our seasoned team and experienced partners are ready to help guide you through the entire process. We offer the opportunities of conventional, FHA, VA, doctor loans or cash. Our multiple options to allow you to buy your dream home in your dream neighborhood — with a seamless process!
Even with interest rates rising, the act of purchasing and owning your own home can still be a significantly better value than paying rent on a property that you will never own and can never truly make your own. We offer tools for you to calculate your mortgage so you can come prepared when searching for your dream home. Check out our mortgage calculator — then browse our home plans, available homes or build-on-your-own-lot options.
We work with two preferred lenders, Truist and Homebridge. Choosing one of our preferred lenders can help ease the process. Our longstanding partnership with these lenders allows them to be familiar with our process and ensures the smoothest possible experience for you.
Basic Steps of Home Financing
Once you’ve decided which Domain Homes design is right for you, it’s time to get down to business. Whether we’re building on your lot or you chose a home from our curated selection, we’ll help you determine the financing options that serve your needs best.
The first step is to get pre-qualified by one of the preferred lenders mentioned above, allowing you to choose the mortgage option of your choice.
Next, it’s time to figure out associated costs. You are responsible for a down payment, closing costs and third-party inspectors. There are also some ongoing costs such as principal and interest, insurance, property taxes, private mortgage insurance and flood insurance where applicable.
Finally, you’ve made it to closing! Our friends at Vintage Title are ready to help you complete your home mortgage closing and provide the invaluable service of updating the “chain of title” to legally indicate, once and for all, that you are the new and only owner of the new property. They also make sure no previous property tax or outstanding liens are owed on the property before you assume ownership. They even provide title insurance to protect financially and legally against any claims not found during the title search.
Finally, the title company manages the closing on your home, also known as “settlement.” Per requirements which vary by state, they appoint a party to review all closing documents and legally finalize the deed and title transfer.
If you are building on your own lot, you’ll then get started with the design and building process!
Are You Ready to Get Started?
Financing doesn’t have to be overwhelming, and we want finding your dream home to be a breeze. Build where you want to live and take the guesswork out of financing.
We make it simple to finance your home. Contact us today so we can get you started building value from the ground up.