The Central Florida real estate market is full of great opportunites for the smart homebuyer. If prepared, a buyer is in the driver's seat and can negotiate the lowest price and best terms. Of course, you must do your research and make sure you don't pay too much for a home.
But before you spend hours browsing the internet and driving around looking at homes, you must know how much you can afford. Don't get "pre-qualified" online and assume the payment you see on your screen is what your total monthly payment will be.
Find a reputable, experienced lender who is located in the area you want to buy, talk to the lender personally and get "pre-approved" - not "pre-qualified" for a mortgage. Find out what your monthly principal, interest,taxes and insurance - called P.I.T.I. - is going to be. This is your TOTAL monthly payment. If you are putting less than 20% down, you will also have a fifth amount in your monthly payment called PMI (private mortgage insurance). If you are buying through the FHA program, instead of PMI insurance in your total monthly payment, you will have an FHA insurance premium.
Also, ask the lender to give you a GFE - a Good Faith Estimate of your closing costs. In addition to closing costs, you will need money for a home inspection, termite inspection and any other inspections that might be prudent for the particular home you are buying (mold, septic tank, well, etc.)
A pre-approval from a lender puts you in an excellent negotiating position and it's your green light to begin your home search. Once your financing is in place, you are in the driver's seat!
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