The journey to homeownership in Orlando starts with understanding how much you can truly afford. One of the biggest considerations is your down payment, if any. While many believe you need at least 20% down, that’s not always the case. Thanks to a variety of programs-such as FHA loans that allow as little as 3.5% down, and zero-down options for eligible veterans-homeownership is more accessible than you might think.
Pre-Qualification vs. Pre-Approval
As you prepare to buy a home in the Orlando area, you’ll come across two key terms: pre-qualification and pre-approval. These are not the same.
Pre-qualification is a basic estimate of how much you may be able to borrow, based on information you provide.
Pre-approval, on the other hand, is a more official process where a lender reviews your credit, income, and financial background to approve a specific loan amount.
While you can start browsing homes without being pre-qualified, you’ll need a pre-approval letter before you can make a serious offer-so it’s smart to get pre-approved early in the process.
Financing Your Orlando Home
You can secure home financing through your local Credit Union, a mortgage broker, or your own bank. The paperwork typically includes proof of income, employment, credit history, and assets. Once submitted, you could receive a decision in just a few days.
Important Considerations
Once you're pre-approved, it’s time to start shopping for your Orlando dream home. Keep your current income and expenses in mind. Just because you’re pre-approved for a certain amount doesn’t mean you should borrow the maximum. Be realistic about what monthly mortgage payments fit your budget and lifestyle.
You’ll also need to plan for closing costs, which usually range from 2% to 5% of the home’s purchase price. These include fees charged by lenders, title companies, and other third parties involved in the sale and they must be paid at the time of closing.
Finally, as a homeowner in Orlando, you’ll be responsible for property taxes. These vary based on the location and value of your home. Orange County’s property tax rate is competitive by Florida standards, but it's wise to factor this recurring cost into your overall budget.
Ready to Explore Your Options?
Whether you're just starting to plan or ready to make a move, understanding your affordability range is the first step toward successful homeownership in Orlando. Connect with a Berkshire Hathaway HomeServices Results Realty trusted REALTOR® to begin your journey today.
