If you’re currently renting in Orlando, you’ve probably noticed that rent prices continue to climb. With the average rent for a one-bedroom apartment hovering around $1,700 per month, many renters are starting to ask: Would buying a home actually be more affordable?

The short answer: It could be—if you’re prepared.
Homeownership doesn’t happen overnight. In fact, the process can begin up to a year before you’re ready to start house hunting. The first and most important step? Create a homeowner budget.

---

Step 1: Define What You Want—and What You Need

Start by making a list of what you’re looking for in your future home. Break it into “must-haves” and “nice-to-haves.” Be realistic about what you can afford in the Orlando market, where the median home price is currently around $385,000.

Consider factors like:

• Square footage
• Number of bedrooms and bathrooms
• Type of neighborhood or school district
• Commute times and access to public transportation
• Yard size
• Garage or no garage
• Home age (new build vs. resale)

Once you’ve made your list, set a realistic price range based on your income and savings—and stick to it.

---

Step 2: Build Your Budget

Create a detailed list of your monthly income and expenses to understand your current financial picture. You can use an online budget calculator or spreadsheet to help. If you’re barely breaking even each month, it’s time to cut unnecessary spending and start saving.

---

Step 3: Eliminate Debt

Paying off existing debt—like credit cards, car loans, or personal loans—not only frees up your monthly budget, it also improves your debt-to-income ratio, which lenders use to determine your loan eligibility.

Once a debt is paid off, start redirecting that money into a savings account. You’ll need funds not just for a down payment, but also for:

• Appraisals
• Inspections
• Moving costs
• Closing costs (which can add 2–5% of the purchase price)

---

Step 4: Explore Homebuyer Assistance Programs

Even if you have a modest income, homeownership is still possible in Orlando thanks to several government-backed loan programs:

• FHA Loans: Require as little as 3.5% down and are ideal for first-time buyers.
• USDA Loans: Available for rural areas around Central Florida with zero down payment.
• VA Loans: Offer competitive rates and no down payment for eligible veterans.
• Florida Hometown Heroes Program: Assists frontline workers, teachers, and first responders with down payment and closing cost assistance.

---

Step 5: Monitor Your Credit

Your credit report and score will play a big role in determining your mortgage terms. Most lenders require a minimum score of 620, but the higher your score, the better your loan options.
Keep paying your bills on time, reduce credit usage, and check your report regularly for errors.

---

Final Thoughts

Buying a home in Orlando might feel out of reach, especially with rising costs. But with a clear budget, smart debt management, and the right support, owning a home can become a reality—no matter your income level.

It will take time, discipline, and planning, but the reward—a place of your own in one of Florida’s most dynamic cities—is well worth it.

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently.  You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

Google+ Comments