Buying a home is one of the biggest decisions you’ll ever make—and chances are, you have a lot of questions. If you’ve ever turned to Google for help, you’re not alone! Whether you’re relocating or buying a home in or around Central Florida for the first time, here are the 25 commonly searched home buyer questions, answered clearly to help you feel confident and informed.
General Home Buying Questions
1. How do I buy a house?
As a general roadmap, buying a home involves getting pre-approved with a lender (or showing proof of funds if you are purchasing with cash), working with a Realtor, shopping for homes, making an offer, completing inspections, and closing the deal. While there are other steps along the way, this is the main roadmap in many cases. We are there to help you every step of the way!
2. How much house can I afford?
It depends on your income, debt, credit score, and how much you plan to put down. Home prices vary by neighborhood, so using a mortgage calculator and speaking to a local lender can help you find your range. Check out a mortgage calculator here: CLICK HERE
**Please be advised that this is for informational purposes only and does not take the place of speaking with a lender. Only lenders can provide accurate numbers based off of your financial picture.
3. How much do I need for a down payment?
Buyers typically put down between 3% and 20%. However, first-time home buyer programs in Florida can reduce this significantly. VA and USA loans also have little to no down payment options. Feel free to check out the down payment assistance programs here to see what you may be eligible for: CLICK HERE
4. What credit score is needed to buy a house?
Generally, you’ll need a credit score of at least 620 for conventional loans. FHA loans may accept lower scores with a larger down payment. Reaching out to your lender is the first step in determining what you will qualify for.
5. How does my Realtor get compensated?
In MOST cases the seller has already agreed to compensate the buyer's broker upon listing their home for sale. There are however times in which the seller has not agreed up front to this. When this occurs, we work to negotiate this into the offer that is presented if you choose to move forward with submitting an offer on the home.
Financing & Mortgage Questions
6. What are first-time home buyer programs?
Florida offers programs with down payment assistance and favorable loan terms. Buyers may qualify for programs through Florida Housing or local assistance initiatives. Depending on where you are looking to buy, there may be available local programs open to you. Your lender can help you find the right options for you.
7. What is PMI (Private Mortgage Insurance)?
PMI protects the lender if you default. It’s often required if your down payment is less than 20%. PMI is typically added to your monthly mortgage payment.
8. Should I get pre-approved or pre-qualified?
Pre-approval is stronger—it shows sellers you're serious and financially ready. A pre-qualification is a preliminary estimate of how much a lender might loan you-it is not uncommon to get pre-qualifications just by filling in some minor info online. Whereas a pre-approval is more thorough with a lender verifying your information. While there will be more info needed up front from a lender when it comes to a pre-approval, it helps to make it smoother come contract time and getting to closing!
9. How do I get a mortgage loan?
Compare lenders, gather your financial documents, and get pre-approved. Have the following ready: at least 2-3 most recent paystubs, W-2's, at least 2 most recent month bank statements, ID, last year's tax returns (may need 2 years-especially if trying to purchase through an entity-will also need proof of business docs handy!), investment account statements. Keep in mind the more prepared you are with the documents on the front end, the smoother and quicker things will go.
10. What are current mortgage interest rates?
Rates change daily. Check with local lenders or use online tools to see today’s rates. This will show you weekly rates: CLICK HERE
Home Buying Process Questions
11. What is the closing process?
Closing is when you finalize the paperwork, pay closing costs, and receive your keys. In Florida, a title company or attorney usually oversees this process. During the closing, the buyers and sellers will sign legal documents, closing disclosures, mortgage docs, promissory note, deed, etc.
12. What are closing costs?
Closing costs in Florida generally range from 2%–5% of the purchase price.
13. Do I need a Realtor to buy a home?
It is definitely recommended—especially in a competitive market like Central Florida. A buyer’s agent represents YOUR interests and makes the process smoother.
14. How does escrow work?
Escrow is a neutral third party that holds your deposit and manages paperwork until closing is complete. In Florida that is usually held with a title company or possibly even an attorney. As a buyer you will deposit an agreed upon amount (typically within 3 days of an accepted offer) to the title company to hold on to until closing at which time those funds (generally) will be used as part of your down payment.
15. What happens during a home inspection?
A home inspection is a visual assessment of a home's condition both inside and outside. Everything from floors, windows, roof, HVAC, plumbing, electrical, appliances and everything in between will be looked at by a licensed and insured Florida home inspector. Home inspections are a critical part of the home buying/selling process and it is NEVER suggested to forego this step in the process. Doing so could cost you a great deal of money and hassle in the long run.
Location & Property Questions
16. What’s the best neighborhood to buy a home in?
That depends! Everyone's needs and wants are different. Your lifestyle, commute, and budget will help determine the best fit. There are many sites you can visit to find out more info. Niche.com is just one to help get you started: CLICK HERE
17. Should I buy a new construction home or resale?
Central Florida has both booming new communities and charming older neighborhoods. Let's chat about what your specific wants and needs are!
18. How do I find homes for sale?
We are here to help! This is great to get you started but connect with us to help tailor your search CLICK HERE
19. What is a good school district?
In addition to checking out Niche.com (found in #16 above) check out the following: CLICK HERE
20. What should I look for when touring homes?
Check the roof, A/C unit (important in Florida heat!), layout, natural light, and neighborhood etc. Go past decor and focus on potential. Look out for our next blog mid June for a full list of everything you should be considering.
Legal & Tax Questions
21. How is property tax calculated?
While there are many factors that go in to establishing property tax, here is an initial guide to reference: CLICK HERE We as your Realtors can help guide you to understanding a specific homes taxes once you find one!
22. What is title insurance?
"Title" is the legal right to use or own property and title insurance protects you from legal challenges to your title. Title insurance safeguards your property from hidden problems with your ownership.
23. What are real estate contingencies?
These are conditions within purchase agreements that must be met for the sale to proceed. Here are common contingencies you may come across: financing, appraisal, inspection, title, sale of current home, home insurance.
24. How do home appraisals work?
An independent appraiser compares your home to others recently sold in the area to determine a value. When financing is involved, most lenders will require this.
25. Will my taxes go up after the first year?
Most likely YES! Every property is reassessed at the beginning of the year by the local Property Appraiser's office. Between an increase in value from the previous assessment to possibly eliminating any previous exemption qualifications, amongst other factors, there is a very high likelihood that there will be an increase. With the help of the local Property Appraiser, we can help provide you with a close estimate.
Ready to Buy a Home?
Let’s chat!
We are here to guide you through the entire process. Whether you’re a first-time buyer or relocating to Central Florida, Let us help make the journey stress-free and successful.
Please also feel free to view our home buyers guide with plenty of additional information included!