Buying a house in Orlando can bring on a whirlwind of emotions. Searching for a new place to live for you and your family is exhilarating, exhausting, and maybe a little scary. It can be overwhelming going through the entire process of getting approved for a mortgage and searching for and touring houses. Then you’re making an offer, receiving a counter and then getting through the closing. Then there’s the move. It seems so much easier to rent. But people buy houses every day and it doesn’t have to be an anxiety-ridden process. Follow these steps and you’ll be in your new home before you know it.
Decide if Now Is the Time to Buy a House
Wanting a house and being able to purchase one are two different things. Before you start searching for Orlando FL homes for sale, do your homework. You won’t enjoy living in a new house if you have to sweat paying the mortgage every month. Owning a house is a huge financial responsibility. You need a good credit score to qualify for a mortgage. The best terms and rates start at about a 720 score, so that’s a good goal to shoot for.
You also want to make sure you have a solid and consistent income with at least two years at your current job. Your debt-to-income ratio (DTI) is an important factor that lending companies will consider. The DTI is monthly debt divided by monthly gross income. You want a DTI of 50% or lower and the lower the better.
Another thing to consider is whether or not you are ready to live in one place for the foreseeable future. A mortgage usually lasts about 30 years. You can sell a house before paying it off, but it’s much easier to stay in your home. Be sure you are committed to the Central Florida area before buying a house in Orlando.
When deciding how much you can afford to pay each month, keep in mind, you will need to save some cash for a down payment and the closing costs. A bigger down payment can save interest and lower your monthly mortgage, so it’s worth waiting until you can save more.
Pre Approval
Once your financial affairs are in order and you know what you can afford to spend, it’s time to get preapproved for a mortgage. Searching for the right lender is just as important as seeking the right house. There are conventional, FHA, and USDA loans available and VA loans for veterans. Take your time and find the best lender for you and your situation. Once you are preapproved, you will know how much you have to spend on a home and what your payments will be. This makes the buying process easier by narrowing the choices down by price range.
A Real Estate Agent
Buying a house is not like other expensive purchases such as buying furniture or a car. Rather than searching on your own, you are better off using a real estate agent. A good agent will sit down with you and ask all of the criteria you are looking for in a house. This includes size, the number of bedrooms and bathrooms, outdoor space and location. Agents represent sellers and know what homes are available. Real estate agents compile lists of available properties that meet your needs and show them to you. They also can answer any questions you have and help you negotiate the best deal. The seller generally pays the agent’s commission allowing you to use the services for free.
The Search
This is where the fun begins. The agent will start setting appointments for you to look at homes within your price range that match what you’re looking for. Bear in mind that most people don’t get everything they are looking for, especially when buying a first home. You will probably have to make compromises. If you have children you may go with a smaller home that is in a good school district. If you want a swimming pool, you may have to give up that extra bathroom. The agent can help guide you but ultimately, you must be the one to prioritize what features are absolutely necessary and what you can live without.
Making an Offer
Once you’ve found a house that meets your needs and that you can afford, it’s time to make an offer. You can often get a house for less than the selling price. This depends upon the current market and how eager the seller is to move the house. Your agent can help you decide on a fair and realistic offer. The seller may accept your initial offer, but negotiations are common. Once a price is agreed upon, you can move on to the closing and become a homeowner.
Owning a home is a goal for many people. It is a long and involved process, but taking it one step at a time and using a good real estate agent can get you through it and into your new home.
