Are you ready to buy?

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Are you ready to buy?

Sometimes when we go to a shopping center we see something that catches our attention in a store and we buy it without first checking our budget. The same happens with houses, a friend or family member buys a house and we get excited and decide to buy a house without asking ourselves if we are really ready to buy a house.

In this guide we share a series of guidelines to keep in mind to make your dream of buying a house in Orlando come true without it becoming a problem in the future.

Before going out looking for a house

Many people wonder how much is the most you should pay for a house, but the real question must be “how much can I pay for a house?”.

Before you go looking for a house and get excited about one that you like, you must define your budget. If you have been pre-qualified for a loan for a certain amount, it does not mean that you should buy a house for that price. Although it is important to know your debt capacity and identify your needs, only when you establish a budget you can identify how much you should pay for a house. Now, if you have the necessary solvency, you can afford to buy in cash.

Do you need advice to buy a house?

How to make a budget?

To prepare a budget you can follow these 3 simple steps:

    1. Identify monthly savings. Make a list of all your household income and another of all expenses. Then subtract expenses from your income and you’ll get the amount you can save each month.
    2. Set your priorities. If the amount of money you save each month is not enough, identify your priority expenses and try to reduce other less necessary ones.
    3. Control your expenses. Make use of an app, spreadsheet or physical notebook to write or enter all the expenses you have every day, no matter how much the amount is, then create several categories (food, transportation, health, insurance, clothing, entertainment, etc.) and frequently review your expenses to identify which ones you should reduce.

How much can I pay for a house?

The important thing is not to know how much money they can lend you but how much you can pay each month. It is recommended that your monthly mortgage payment does not exceed 28% of your monthly gross income. For example, if your monthly gross income is $6,000, the maximum amount you should pay in mortgage is $1,680, corresponding to 28%. If you buy a home with a mortgage over 28% of your gross income, you may have future financial problems due to lack of planning.

When you first buy a home, my wife and I had a lot of questions, fears, anxiety, which is why we spoke to many realtors in Orlando before taking the plunge and we were happy to take that plunge with Alexander and Monica. Their customer service, attitude, and knowledge are unmatched. Thank you for all of your time and advice. You both were a tremendous help!
by Keith Jablon
Home Buyer
My wife and I have moved 10 times in the last 30 years due to my work, and obviously we have dealt with many Realtors both for sale and purchase. I must say that Orlando Homes Sales has been by far the best team of real estate agents we have worked with, their professionalism, experience, responsibility, attention to detail was exceptional! Do yourself a favor and buy or sell with them.
by Kathy & David
Home Seller
After working with Orlando Homes Sales to sell my house, I was convinced that I would always work with them. Since then I have bought 2 properties and sold one, and in each process I have obtained the best results. It really is a pleasure to work with real estate agents who care about the interests of their clients.
by Luis Rodriguez
Home Seller
Our experience with Orlando Homes Sales could not have been better. We were first time home buyers with very little knowledge of how to find the perfect home. As soon as we met Monica and Alex we realized that they were the right Realtors to buy our house in Orlando.
by Julian Andrade
Home Buyer
We couldn't be happier with the way the Orlando Homes Sales team worked with us on our investment in buying a home in Orlando. They are extremely responsive and proactive. We weren't sure what the home buying process would entail or how much work it would take, but with the experience they have, everything went smoothly. We have our house rented for $ 2,100 and we pay $ 1,450 in mortgage.
by Luiz & Josefa
Investors
I recently sold my Hunters Creek home through Orlando Homes Sales, and while this is a very stressful process, I felt 110% confident in going through this process with Monica. He shared a lot of really helpful advice with me, and he negotiated and closed the sale brilliantly.
by Mike Morales
Home Seller
It was the first time we had purchased a home as an investment, so it took us a while to find the best real estate agents in Orlando. We decided to work with Orlando Homes Sales after seeing all the testimonials on their website and we were lucky to have chosen them. They provided us with an incomparable service, providing us with all the information we needed to know to make the decision to invest in Orlando. We were lucky to find them.
by Nuno & Adella
Investors
I live in South America but I always had the dream of investing in a vacation home in Orlando, where I could get a financial benefit and at the same time take my family to the parks every year. I found Orlando Homes Sales through Google and when Monica called me, I realized right away that she was the Realtor I needed to invest in Orlando. Anyone who wants to invest in Orlando real estate, Orlando Homes Sales will be your best ally.
by Ricardo Gomez
Investors
We were very fortunate to have found the Orlando Homes Sales website when we Googleed to buy a home in Orlando. Monica is definitely a very experienced real estate agent who gave her all to help us make our dream come true. Thanks for your patience, you are the best realtor
by Ricky Guerrero
Home Buyer

How much should my initial payment be?

The best recommendation will always be to pay 20% of the initial fee, since it would save the payment of a private mortgage insurance (PMI) that is included within your monthly payment. By paying 20% ​​down payment, you will considerably reduce the monthly amount to be paid on a mortgage.

Now, it does not mean that if you have not saved 20% of the price of the house you should not buy a house. There are types of loans like the FHA that only requires you to initially pay 3.5%.

It is true that the higher the down payment the lower the monthly payment will be, but this does not mean that we should run out of our savings just to make a larger initial payment and be with an empty back account. In life we ​​are always presented with unexpected situations for which we must be prepared, and even more when we are homeowners, therefore we recommend that you have an emergency fund that will help you to cover for any unwanted incidents if they arise.

What is your lifestyle?

It is important that you review your lifestyle, and that it is within your monthly budget otherwise you’ll have to sacrifice some of the things you like in order to pay the mortgage, and if you are willing to do in order to buy a house and to own your very own property. You can also consider buying a less expensive house, even if it is not the house of your dreams, but one that allows you to maintain your lifestyle and to capitalize. After a few years the house will have acquired value and you can sell it to buy the house of your dreams.

Buying or renting?

This is a question that many people ask us and we answer with the following example: If you are paying a rent of $ 1,700, why instead of paying the homeowner’s mortgage, don’t you pay your own mortgage? With that monthly money, you are paying the debt of another person who, probably once you finish paying that mortgage, will continue investing in Orlando real estate to rent long-term or vacation homes. Now, if you are renting temporarily or you don’t have a good credit score, renting a house in Orlando is the best option.

Interested in Investing in Orlando?

Sell ​​one house to buy another?

If you are going to sell your house in Orlando to buy another one, it is important that even when you have the money earned from the sale, analyze your income and fixed expenses. It is also necessary that you have an established budget so that you do not commit to debts that you do not know if you will be able to assume.

There are several options when you want to sell your house to buy another one. One of these is to make an offer for the house you want to buy and place as a contingency that you must sell yours first. Now, you must be aware that these types of contingencies can make the seller lean towards another offer even if it is for less money.

When you have the need to sell a house to buy another, you can make mistakes that do not allow you to get the best return on the sale of your home. That is why we recommend you consult with a real estate agent before taking that step.

What aid does the government offer?

The government generally offers some types of help, including for first-time homebuyers. Here are some links for you to learn about the types of aid the government offers. It is important that you review all requirements to access them. A real estate agent will be able to advise you so that you can make the best decision in case of applying for some type of help. Contact us to advise you in the process of buying your home.

After reading all these guidelines you will be able to identify if you are ready to buy a home or not. If so, we invite you to continue reading the next step of our guide “Looking for the home of your dream“.

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.

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