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Buying a house in Pensacola begins here

Located in the westernmost reaches of the Florida Panhandle, Pensacola is a pleasant community steeped in history and tradition. With spectacular beaches overlooking the Gulf of Mexico, a burgeoning downtown district, and affordable real estate, Pensacola is a fantastic place for a stress-free and happy life. With the price of the average Pensacola residence on the rise, purchasing a home here now makes for an excellent investment—and an Earnest home loan can make it happen.
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Pensacola is a panhandle paradise

Pristine beaches, picture-perfect weather, and not a care in the world

Located on Pensacola Bay, Pensacola is a haven for both wildlife and beach goers. With a splendid nightlife and dining scene, temperate yet modest weather and a colorful historical heritage dating back to 1677, it takes quite a bit of effort to exhaust what Pensacola has to offer its residents. Whether you’re enjoying the famously soft sands along the Gulf Coast or enjoying a biannual demonstration from the Blue Angels, life here will never cease to surprise and delight you. Pensacola neighborhoods are filled with affordable, beautiful suburban homes and historic seaside residences. With the median population age at 35 years old, Escambia County is an ideal residence for single professionals and young couples. Escambia County is also a hotbed for military families, because it's home to several prominent naval installations.
Hollywood Florida, illuminated buildings at sunset reflected in the water

Pensacola homebuying from mortgage to move-in

Low rates and a seamless application make it quick and simple

Buying a home in the Pensacola area is worth the investment, but it requires a bit of homework to get the best deals. With so many neighborhoods to compare, websites to browse, and open houses to visit, the process of finding your dream home—at your dream price—is rarely quick. Earnest helps identify your priorities (walkability, commute time, proximity to beaches, etc.) and then analyzes your unique financial profile to determine your target home price. With median home prices in Pensacola around $100,400, the cost of living here is affordable relative to the many amenities.

Common Questions About Buying a Home in Pensacola

All The Answers You Need to Settle Down Sooner

Should I choose a fixed or adjustable rate?

It depends how long you expect to stay in the home. Adjustable rates are good for people who may not be in the home long, whereas fixed rates are ideal for people who are confident of settling in.

Do I need a home appraisal?

Probably—in most cases, the homebuyer must use an appraiser to evaluate the value of the home. Appraisal costs vary depending on the value of the property, as well as the state the house is in. Buyers cannot choose their own appraiser—the bank makes the decision.

What is PMI?

Private mortgage insurance (PMI) is required when a homebuyer makes a down payment of less than 20%, or when a borrower refinances with less than 20% equity in the home. PMI fees vary according to your down payment and credit score, and adds a premium to your monthly mortgage payment. Please note, PMI is tax-deductible in 2015 and 2016 for certain income brackets.

What does Loan-to-Value mean?

Loan-to-Value (LTV) is the percentage of your home’s value that your loan represents. When refinancing, the calculation is simply the loan amount divided by the appraised value. When buying a home, the LTV is found by dividing by either the purchase price or appraised amount, whichever is lower. When the LTV is less than 80%, the lender generally requires PMI.

For example:

Purchase price: $100,000
Down payment: $15,000
Loan amount: $85,000
Appraised value: $110,000
LTV: $85,000/$100,000 = 85%

What are closing costs?

Closing costs are standard fees associated with a real estate transaction. You will typically pay about 2-5% of the purchase price in closing costs—the exact amount depends on where you are buying (or refinancing), as well as number of extra fees involved in your particular transaction. Earnest charges no lender fees, so the borrower is only responsible for 3rd-party fees.

What should I consider before refinancing my mortgage?

Refinancing your home loan is an attractive option when rates are low. A simple rate and term refinance can help you lower your monthly payment and potentially eliminate your PMI premium, as long as you have built up enough equity in the home. You might also use a cash-out refinance to access some of the equity you’ve built up in the home (which may result in a higher monthly payment on your new loan).

However, keep in mind that refinancing a mortgage does involve several fees (closing costs). Before refinancing, you should calculate the ‘break-even’ point at which your refinanced loan makes up for the closing costs. If you plan to leave your home before this time, it’s better to stay with your current mortgage.

Knowledge Is (Buying) Power

Further Resources from the Earnest Blog

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The intelligent home loan

When it comes to finding the right home loan, Earnest works hard to ensure that the process pain-free. We use an industry-leading and intuitive online-only application (meaning most times no scanner or fax machine required), a 5-star client service team, and a unique rolling pre-approval that stays current while you track down that perfect home. At Earnest, the home loan process is like no other.