RESIDENTIAL MORTGAGES
Your Complete
Home Buying Guide
Buying a home is one of the biggest financial decisions you'll make. We'll walk you through every step—from understanding your budget to getting the keys.
Know Your Numbers
Use these calculators to understand your budget and estimate your monthly payments.
How Much Home Can You Afford?
Let's figure out your comfortable price range together
What is "affordability"? Banks look at your income vs. debts to decide how much you can borrow. We call this your debt-to-income ratio (DTI) — basically, what percentage of your monthly income goes to debt payments.
What's your yearly income before taxes?
Your gross annual salary (what your job pays you per year)
What do you pay each month for debts?
Enter your monthly minimum payments (skip any you don't have):
How much can you put down upfront?
How comfortable do you want to be?
Your Affordable Home Range
Based on your numbers, you can comfortably afford up to:
$300,297
with $30,000 down (10%)
$2,247
per month
$4,003
per month for everything else
Monthly Payment Breakdown
What This Means For You
- Your housing payment ($2,247) would be 35.9% of your monthly income. Consider if you have wiggle room in your other expenses.
- After housing and debts, you'd have $4,003/month for groceries, utilities, savings, gas, and fun. You have good breathing room!
- Save $30,059 more for a 20% down payment to avoid PMI and save ~$6,780 over 5 years.
Free pre-approval • No commitment • Takes 5 minutes
Monthly Payment Calculator
See what you'd pay each month for your home
Great! 20%+ down means no PMI required.
Your Estimated Monthly Payment
$2,573
That's about $86/day•Like 14 coffees daily
Where Your Money Goes Each Month
What This Means For You
- You'll borrow $320,000 and pay back $1,006,142 total over 30 years.
- About $408,142 goes to interest (the cost of borrowing).
- Your first month, only ~$889 actually reduces your loan balance. The rest is interest, taxes, and insurance.
Free • Takes 5 minutes • No impact on credit score
The Home Buying Process
From pre-approval to closing, here's what to expect at each step of your journey.
Get Pre-Approved
Know your budget before you shop. Pre-approval shows sellers you're serious and ready.
Find a Real Estate Agent
Partner with a local expert who knows the market and can negotiate on your behalf.
Search for Homes
Tour properties that fit your needs, budget, and lifestyle. Be patient but decisive.
Make an Offer
When you find the one, work with your agent to submit a competitive offer.
Home Inspection
Hire a professional to identify any issues with the property before you're committed.
Appraisal
The lender orders an independent appraisal to confirm the home's value.
Underwriting
Your loan goes through final review. Respond quickly to any conditions or requests.
Close & Get Keys
Sign the final paperwork, transfer funds, and receive the keys to your new home.
First-Time Buyer? Start Here
Buying your first home is exciting and overwhelming. These tips will help you avoid common pitfalls.
Check Your Credit First
Pull your credit report for free at annualcreditreport.com. Dispute any errors and pay down high balances before applying.
Save More Than the Down Payment
You'll need 2-5% for closing costs, plus reserves for moving, repairs, and emergencies. Aim for 3-6 months of expenses saved.
Get Pre-Approved, Not Pre-Qualified
Pre-qualification is a rough estimate. Pre-approval means your finances have actually been verified. Big difference to sellers.
Don't Make Big Purchases
Avoid buying cars, furniture, or taking on new credit between pre-approval and closing. It can derail your mortgage.
Common Mistakes to Avoid
- Not getting pre-approved before house hunting
- Skipping the home inspection to save money
- Making major purchases before closing (cars, furniture, appliances)
- Changing jobs during the mortgage process
- Draining your savings for the down payment (keep reserves)
- Waiving contingencies in a competitive market without understanding the risks
- Not shopping multiple lenders for the best rate
- Ignoring the neighborhood—schools, commute, future development
Down Payment Options
You don't always need 20% down. These programs can help you buy sooner.
FHA Loans
3.5% down with 580+ credit
Government-backed loans with lower down payment requirements. Great for buyers with limited savings or credit challenges.
VA Loans
0% down for veterans
No down payment required for eligible veterans, active duty, and surviving spouses. Also no monthly mortgage insurance.
USDA Loans
0% down in rural areas
Zero down payment for homes in USDA-eligible areas. Many Florida counties qualify, including suburbs of major cities.
Florida Hometown Heroes
Up to $35,000 assistance
Down payment and closing cost assistance for Florida workers in over 50 professions including teachers, healthcare workers, and first responders.
Private Mortgage Insurance (PMI)
If you put less than 20% down on a conventional loan, you'll pay PMI—typically 0.5-1% of the loan amount annually, added to your monthly payment. The good news: PMI can be removed once you reach 20% equity.
Example: On a $300,000 loan, PMI might cost $125-$250/month until you reach 20% equity.
Documents You'll Need
Gather these before applying to speed up your pre-approval.
For Everyone
- •Government-issued ID (driver's license, passport)
- •Social Security number
- •Most recent 2 years of W-2s
- •Most recent 30 days of pay stubs
- •Most recent 2 months of bank statements
- •Proof of any other assets (retirement, investments)
If Self-Employed
- •Most recent 2 years of personal tax returns
- •Most recent 2 years of business tax returns
- •Year-to-date profit & loss statement
- •Business license (if applicable)
- •CPA letter or 1099s (if applicable)
Which Loan Type Is Right for You?
A quick comparison to help you understand your options.
| Loan Type | Min. Down | Min. Credit | Best For |
|---|---|---|---|
| Conventional | 3% | 620 | Good credit, want to remove PMI later |
| FHA | 3.5% | 580 | Lower credit, first-time buyers |
| VA | 0% | No minimum | Veterans, active duty, surviving spouses |
| USDA | 0% | 640 | Rural and suburban areas |
Common Questions About Buying a Home
Get clear answers to the questions we hear most often from homebuyers.
It depends on the loan type. Conventional loans require as little as 3% down. FHA loans require 3.5%. VA and USDA loans offer 0% down. Putting 20% down avoids private mortgage insurance (PMI), but it's not required. Many buyers put down less and still succeed.
Closing costs are fees paid at closing beyond your down payment. They include lender fees, title insurance, appraisal, prepaid taxes and insurance, and more. Expect 2-5% of the loan amount. On a $300,000 loan, that's $6,000-$15,000. Some can be negotiated or covered by the seller.
From pre-approval to closing typically takes 30-60 days once you're under contract. Finding the right home can take weeks to months depending on the market. The entire process—from deciding to buy to getting keys—often takes 2-4 months for most buyers.
It depends on your situation. Generally, if you plan to stay 3+ years, buying often makes financial sense. Consider: Are you ready for maintenance responsibilities? Do you have stable income and emergency savings? Is your credit in good shape? There's no shame in renting if buying doesn't fit your life right now.
The minimum depends on loan type: FHA accepts 580 (or 500 with 10% down), conventional typically requires 620+, and VA has no official minimum but most lenders want 620+. Higher scores get better rates—a score of 740+ usually qualifies for the best rates available.
Yes! Student loans factor into your debt-to-income ratio, but they don't disqualify you. Lenders look at your monthly payment, not the total balance. If you're on an income-driven repayment plan, we can often use that lower payment. Many buyers successfully purchase homes while paying off student loans.
Pre-qualification is a quick, informal estimate based on self-reported information. Pre-approval involves actual verification of your income, assets, and credit—making it much more reliable. Sellers take pre-approval letters seriously because they show you're a qualified buyer.
Use our affordability calculator above for a starting point. A common guideline is keeping your total monthly housing payment (including taxes and insurance) under 28% of gross income, and total debt payments under 36%. But the real answer depends on your lifestyle, goals, and comfort level with the payment.
Ready to start your home buying journey?
Get pre-approved in minutes and know exactly what you can afford.
NEXT STEP
Ready to Find Your Property?
Now that your financing is in place, our real estate team is ready to help you find the perfect home.