Looking for the home of your dreams
Once you have prepared your budget, you know how much you can pay for a house, how much you can assume from a down payment, and that you are ready to buy your house in Orlando, the next step is to work with an experienced real estate agent.
Work with a real estate agent
There is no obligation to buy a home in Orlando to work with a real estate agent. You can visit different Orlando communities on your own, surf the Internet and view home sales websites, and do the whole process on your own. Now, it is good to know that when you work with a Realtor you should not pay any type of fees or commissions, since these are paid by the seller.
Working with a real estate agent offers you great benefits, since you can rest easy knowing that you are advised by an expert and that you will not make mistakes. The process of buying a house is usually very stressful, a Realtor will provide you with all the tools you need, saving you time and money.
Your agent will present you listings of houses for sale according to your needs, will accompany you to see them, which is a great guarantee, since due to his experience he will focus on all the details that add or subtract value to the house. Likewise, it will present the offers and represent you in the negotiation to obtain the greatest benefits, and finally it will fill out all the legal documents that are usually very confusing for someone with no experience, avoiding any type of error that may affect your interests.
While a real estate agent is crucial to making a successful purchase, it is even more important to choose the right agent. We recommend working with an agent that meets most of the following criteria:
- Time availability. You need to work with an agent who has enough time to take you to see houses at times that suit yours and who has time to clarify your questions about the process.
- Expert in the area you want to buy. When you define the area you want to live in, you will need to know everything about that community. A Realtor specialized in that area can advise you to choose the right house.
- Service vocation. You need an agent who cares about your interests and benefits, someone who works and is satisfied by helping people achieve their dream of buying a home rather than for a commission.
- Agent who makes suggestions. In many cases the buyer is inexperienced and does not know what aspects of the house must be analyzed to make a decision. It is important to have an agent that makes suggestions to you, so that when they visit a house they can inform you about the details that they identify, however small, about improvements that can be made, about details that buyers sometimes omit, such as the state from the roof of the house, the air conditioning system, among others.
- Someone who connects with you. You and your agent must be aligned to achieve results successfully. You should work with someone who you feel is connected and that they are both on the same page. This will give you more confidence and streamline processes.
Choose a lender
If you have the necessary money, you can afford to buy in cash without having to make a loan. Now, if you require a loan to buy your home, it is essential to choose the right lender, and for this you should consider different options such as banks, mortgage brokers, credit unions, savings and loan entities, builders and credit entities that you will find by Internet..
Some general questions to ask lenders are: what are the types of loans, interest, closing costs, insurance costs, and down payment requirements.
- What type of loan is right for me? There are different types of mortgage loans, but the most recognized are FHA, Conventional and veterans loans. It is important that with the advice of your lender you define what is the most convenient option for you. On this government page you will find more detailed information about mortgages (view information).
- Request quotes from 3 lenders. Deciding to work with the first lender you speak to is not a good decision. Quote with at least 3 lenders to make sure you get the best benefits on interest rates and terms. According to a study by the Federal Loan Mortgage Corporation (Freddie Mac), a company guaranteed by the United States government and authorized to guarantee and grant loans, a borrower could save on average $ 1,500 when obtaining an additional quote and up to $ 3,000 when obtaining 5 quotes. Therefore, do not stay with the first quote you receive, remember to compare several options.
- Get a pre-approval letter. The pre-approval letter will be very useful before starting the process, since you will avoid spending unnecessary efforts looking for houses for amounts greater than what you have to buy. In addition, it will be an advantage over other potential buyers interested in the same house, since with this you are showing the seller that doing business with you has a guarantee and a high probability of success. This is the best evidence that your lender has evaluated your finances and is willing to loan you that amount to buy a home.
- What documents will you need to obtain approval for your loan? To obtain your pre-approval letter, you must provide certain information to the lender to carry out your credit study. Here is a list of the main documents:
- Social security number, proof of payment for the last 30 days.
- W-2 for the past two years (Tax returns).
- Proof of other income (if any).
- Salaries, names, addresses, and phone numbers of your employers for the past 2 years.
- Bank information.
- Information on current debts.
- Information about the initial fee you can pay and where the money comes from.
- Other records and documents.
In which area do you want to buy?
Remember that buying a house is not the same as buying a garment, that if you regret it you can return it or simply keep it but you will use the ones you like the most. Buying a house is a decision that you must make with a lot of responsibility. Therefore it is necessary that you identify which is the ideal area for you and your family. For this, start by analyzing your lifestyle:
- Identify which are the places you most frequent (work office, restaurants, shopping centers, etc).
- The ease in terms of routes to get to those places.
- How close are the supermarkets.
- Close to pharmacies, shopping centers.
- If you like to exercise, which is the closest gym.
- In case you have children who go to school, it is essential that you know the schools in the area and their respective qualifications.
Make a competitive offer.
Once you start searching for houses with your real estate agent, you should be prepared to make an offer the moment you find the house that meets your needs. Remember that like you, there are many more people interested in buying a house in Orlando and there will surely be several interested in the same house that you want to buy. Therefore, you must be clear that the seller will receive several offers for the house. It is important to make a competitive offer as soon as possible and with the least amount of contingencies, since the latter also affects the seller’s decision.
We explain with an example what we mean by contingencies. Imagine you have a house and you need to sell it to buy another house. After having found the house that you like, you decide to make an offer for a certain amount and put as a contingency that to buy the house you must sell yours first. The seller may receive an offer for less than what you have offered, but without contingency. This could cause the seller to be more attracted to the other offer, since you won’t have to wait for someone else to sell your house to buy yours, which will mean less time for you and perhaps less cost.
After completing the second phase of your home buying process, we invite you to continue reading the next step of our guide “Buying the home of your dreams”.
If this guide has been useful to you and you think it can help other people in their process of buying a house in Orlando, we invite you to share it on your social networks.