701 Woodridge Dr, Savannah
Listing courtesy of Keller Williams Coastal Area P.
912-289-7355
Real Estate Company
Buying a home in Coastal Georgia is easier than you may think! Here are the most frequently asked questions by our clients on buying a home in Georgia when represented by a Realtor®.
The first step in buying a home is to get pre-qualified for a home loan with a mortgage lender.
Once pre-qualified you'll know how much home you can afford, and your monthly mortgage payment, including property taxes and homeowner's insurance. This will allow you to begin your home search with confidence! Your lender will also help you determine which loan program - such as VA, FHA, USDA, or Conventional - is right for you.
Once you find the perfect home, your lender pre-qualification letter is included with your purchase offer to inform the seller that you're qualified and ready to purchase the home.
Closing costs are those associated with the purchase of a home. They include items such as the home appraisal, property taxes, homeowner's insurance, lender fees, closing attorney fees, state and local taxes, etc. Your lender will breakdown and explain costs in your closing disclosure.
The amount depends on variables such as the sales price of the home, property taxes, insurance, etc. Your mortgage lender can estimate closing costs for the home you're interested in.
Closing costs are paid by the home Buyer. However, Buyers can sometimes negotiate a contribution at closing from the seller.
Earnest money is offered by Buyers as 'good faith' of their intention to purchase the home. Although it's not a legal requirement in Georgia, it's common practice.
There is no set amount for earnest money. It can be whatever amount both Buyer and Seller agree to.
Earnest money is applied to Buyer closing costs.
If home Buyers terminate the purchase agreement during the due diligence option period, financing contingency period, or appraisal contingency period, their earnest money is returned.
This option period is the home Buyer's opportunity to examine the home, assess the home's condition, and decide whether or not to proceed with the purchase.
The due diligence period can be any number of days agreed to by Buyer and Seller.
We strongly recommend that Buyers hire a home inspector to examine the home and provide a written assessment of the home's condition. Additionally, the Buyer should personally inspect the home and investigate any concerns.
Home Buyers have the option to negotiate concerns with the seller, including home repairs or other seller concessions.
This is the Buyer's option period. Home Buyers have the right to unilaterally terminate during the due diligence period, without penalty. Earnest money is returned to the Buyer.
A home inspection is a limited visual inspection & general assessment of the home's condition. The home inspector will provide an opinion on the home, including potential concerns, in the form of a written report. Home Buyers can utilize the report as a tool to better understand the condition of the home. Additionally, Buyers should personally inspect the home and investigate any concerns.
We strongly recommend the home inspection be completed during the due diligence period, allowing the opportunity to negotiate repairs, additional concessions from the seller, or unilaterally terminate the purchase agreement.
The home inspection is ordered and paid for by the home Buyer during the due diligence option period.
Choosing a qualified and experienced home inspector is key. Browse our directory of home inspectors to help find one that's right for you.
If home Buyers are turned down for a loan by their lender, they can terminate during this period by providing a loan denial letter to the seller. Earnest money is returned to the Buyer.
The Buyer's rights under the amendatory clause exist even after the expiration of the financing contingency period for VA & FHA loans.
A home appraisal is a standardized third-party assessment of the home's value. The appraiser independently determines the reasonable or fair market value of the home, ensuring that Buyers don't pay more than the home is worth and lenders don't lend more than the home is worth.
The home appraisal is ordered by the mortgage lender, and should be completed within the appraisal contingency period for both United States Department of Agriculture (USDA) and Conventional loans.
If the home's appraised value is less than the purchase price, home Buyers have options during the appraisal contingency period:
Negotiate the Price. Buyer can attempt to renegotiate the lower purchase price with the seller.
Pay the Difference. Buyer can chose to pay the difference in cash, at the closing.
Terminate. Buyer can terminate the purchase agreement, without penalty. Earnest money is returned to the Buyer.
The appraisal contingency period does not apply to VA & FHA loans because the amendatory clause prevents Buyers from being compelled to pay more than the appraised value of the home.
When Buyers choose to finance their home purchase with a VA loan, a qualified appraiser determines the home's reasonable value by completing a Veterans Administration (VA) appraisal.
The home Buyer's loan amount cannot exceed the VA appraised value. If the loan amount does exceed the appraised value, Buyers have options:
Negotiate the Price. Buyer can attempt to renegotiate the lower purchase price with the seller.
Pay the Difference. Buyer can chose to pay the difference in cash, at the closing.
Terminate. Buyer can terminate the purchase agreement, without penalty. Earnest money is returned to the Buyer.
When Buyers choose to finance their home purchase with an FHA loan, a qualified appraiser determines the home's reasonable value by completing a Federal Housing Administration (FHA) appraisal.
The home Buyer's loan amount cannot exceed the FHA appraised value. If the loan amount does exceed the appraised value, Buyers have options:
Negotiate the Price. Buyer can attempt to renegotiate the lower purchase price with the seller.
Pay the Difference. Buyer can chose to pay the difference in cash, at the closing.
Terminate. Buyer can terminate the purchase agreement, without penalty. Earnest money is returned to the Buyer.
A written agreement is required by Georgia state law when a real estate broker has a client relationship with the home buyer and by the National Association of Realtors® when working with all home buyers prior to touring a home (in-person or virtually).
It's simply a written agreement between the home buyer and broker which establishes a confidential client relationship. The Georgia Realtors® Exclusive Buyer Brokerage Engagement Agreement permits the buyer's broker to act exclusively on the buyer's behalf in locating, negotiating the purchase of real property, and completing the purchase offer for the buyer's review and approval.
Experienced and highly-rated local Realtors® are here to answer all your home buying questions.
Contact us today to find the home that's right for you!
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