First-Time Home Buyer Guide

Step 1: Get Pre-Approved Before You Start Looking

The single most important step for any first-time buyer is getting pre-approved for a mortgage before you start touring homes. A pre-approval letter tells sellers you are a serious, qualified buyer and gives you a clear picture of how much home you can afford.

During pre-approval, a loan officer reviews your income, assets, debts, and credit history. You will need to provide recent pay stubs, W-2s or tax returns, bank statements, and identification. The process typically takes one to three business days once your documents are submitted.

In the competitive Central Florida market — especially in areas like Altamonte Springs, Orlando, Winter Park, Lake Mary, and surrounding communities — sellers often will not consider offers without a pre-approval letter attached. Getting this done first puts you in the strongest negotiating position.

Not sure which loan program fits your situation? Explore our loan options or start your pre-approval today.

Step 2: Set Your Budget and Understand Total Costs

Your pre-approval amount is the maximum a lender may offer — it is not necessarily what you should spend. Smart buyers build a budget that accounts for the full picture: monthly mortgage payment (principal and interest), property taxes, homeowners insurance, HOA fees if applicable, and maintenance reserves.

In Central Florida, property taxes vary by county. Seminole County rates typically run around 0.85–1.0% of assessed value, while Orange County averages slightly higher. Homeowners insurance in Florida has risen in recent years, so budget $2,000–$4,000 annually depending on the property and coverage level. Flood insurance may be required if the home is in a FEMA-designated flood zone.

Use our mortgage calculators to estimate your monthly payment with taxes and insurance included. A general guideline is to keep your total housing costs below 28% of your gross monthly income.

Do not forget closing costs. In Florida, buyers typically pay 2–5% of the purchase price in closing costs, which includes lender fees, title insurance, appraisal, survey, and prepaid items like taxes and insurance escrow. Your loan officer will provide a detailed Loan Estimate within three business days of your application.

Step 3: House Hunting and Making an Offer

With pre-approval in hand and a clear budget, you are ready to work with a real estate agent to find the right home. In Central Florida, inventory levels fluctuate seasonally — spring and early summer tend to have the most listings, while fall and winter may offer less competition from other buyers.

When you find a home you love, your agent will help you craft a competitive offer. Key elements include your offer price, earnest money deposit (typically 1–3% of the purchase price in Central Florida), financing contingency, inspection contingency, and desired closing date. In a competitive market, your pre-approval letter and proof of funds for the down payment strengthen your offer significantly.

Once the seller accepts your offer, you enter the contract period. Your lender will order an appraisal to confirm the home's value supports the loan amount. If the appraisal comes in low, you may need to renegotiate the price, bring additional cash to closing, or in some cases, walk away.

Step 4: Inspections, Insurance, and Closing

A home inspection is your opportunity to uncover potential issues before you commit. In Florida, pay special attention to the roof condition (insurance companies often require roofs under 15 years old), HVAC systems, plumbing, and signs of water intrusion or termite damage. A standard inspection costs $350–$600 depending on the home's size.

You will also need to secure homeowners insurance before closing. Shop early — Florida's insurance market can be challenging, and some carriers have limited availability. Your lender requires proof of insurance before issuing final loan approval.

As closing approaches, your loan moves through underwriting for final approval. You will receive a Closing Disclosure at least three business days before closing, detailing your exact loan terms and costs. Review it carefully and compare it to your original Loan Estimate. On closing day, you will sign documents, wire your down payment and closing costs, and receive the keys to your new home. Learn more in our closing process guide.