No matter if you’re a first-time buyer looking for just a vacation home or a very seasoned investor in the real estate sector, buying properties in Orlando is no easy task. Multiple factors you have to consider to get the right property for a justified price. And you should start by choosing the best real estate, based on your preference and your requirement. You have to balance these two factors, choice and need. It’s very normal if you find that your preferred property doesn’t actually fulfill all of your requirements. Don’t worry though, here at https://www.orlandofloridahomesales.com / we are always at your disposal. We helped numerous of our esteemed clients to choose the right real estate, and the majority of them are first-time buyers. If you think that you’re ready to start living in Orlando, want to be part of the rocket-growth of its economy, want to indulge yourself in its terrific weather, want to spend some of your life’s best family vacation days here – look nowhere else, you’re already in the right place at just the right moment.
Plan ahead if you can
It’s better to plan your home buying a few months earlier than just weeks ago. If you’re a first-timer, then it’s a must. You’ll need this time to plan your finances accordingly. First thing first, ask for free credit reports from all 3 major credit rating agencies. Once you got all 3 reports, start comparing them and try to find any conflict among them or any error in any of those reports. It’s normal to see mistakes or errors in credit reports, so make sure to correct them by applying to the relevant agency.
Now, start working on your debts by paying off and try to close the debts as much as you can. Make sure to pay your due bills on time. And most importantly, once you start thinking of buying your home, from that point try to avoid getting any new loan, like a car or business loan. Mortgage lenders would like to see a good DTI ratio (debt to income), which can be 43% maximum, though they prefer to see it below 36%. So, work on that first.
Form a record-keeping habit
Form a record-keeping habit of every bill, pay stubs, statements, etc. In this home buying process, you’d need them anytime and every time, so make sure to carry a folder always with all those paper works neatly organized in it. You can thank us later!
Here’s what you’ll need in the process –
- Statements of all of your checking, savings, brokerage, retirement, loan and credit card accounts of the last 6 months.
- Paystubs of previous 6 months.
- Tax returns (both business and personal) of last 3 years along with W-2.
- Make a note of all of your previous addresses for the last 7 years.
Decide your budget: how far you can go to get that nice home
You must know how much you can afford before start shopping around, no matter it’s a car or a new home. You should have a realistic idea of your financial condition. Take note of your last 5 years income consistency, and try to assume your next 10 years income probability, realistically. Do not underestimate or overestimate; this is a crucial thing. Your budget goal should be minimum 3 times to maximum 5 times of your average yearly income. A down payment of 20% required by conventional mortgage lenders. However, there are lots of other options where you can find down payment rates ranging from as low as 3% to 10%.