First-Time Homebuyer Guide to Orlando (2026)

Pre-Approval and Financing Options

Before you start looking at homes, get pre-approved for a mortgage. A pre-approval letter from a lender tells you exactly how much you can borrow and shows sellers you are a serious buyer. In a competitive market, pre-approval is essential.

The mortgage pre-approval process in Florida typically involves:

• Submitting financial documents: tax returns, W-2s, pay stubs, bank statements, and identification
• Credit check: Your credit score directly affects your interest rate and loan options
• Debt-to-income (DTI) ratio: Most lenders prefer a DTI below 43% to 50%, depending on the loan program
• Pre-approval letter: States the loan amount you qualify for, usually valid for 60 to 90 days

Common mortgage programs for first-time buyers

• Conventional loans: Require a down payment of 3% to 5% for first-time buyers, but typically require a credit score of 620 or higher. Private mortgage insurance (PMI) is required for down payments under 20%.
• FHA loans: Insured by the Federal Housing Administration. Allow down payments as low as 3.5% with a credit score of 580 or higher. More flexible with DTI ratios, but require upfront and annual mortgage insurance premiums.
• VA loans: Available to qualifying veterans, active-duty service members, and eligible surviving spouses. No down payment required and no PMI. One of the most flexible and affordable options for those who qualify.
• USDA loans: Available for homes in eligible rural and suburban areas. No down payment required. Some parts of the Greater Orlando area qualify, though many urban areas do not.

Florida's Title Company Process: No Attorney Required

Florida is a title company state. Unlike some states where attorneys handle real estate closings, in Florida the closing is typically conducted by a licensed title company or a title agent. The title company performs several critical functions:

• Conducts a title search to verify the seller has clear ownership and identify any liens or encumbrances
• Issues a title insurance policy that protects the lender (and optionally the buyer) against future claims on the property
• Facilitates the signing of closing documents
• Disburses funds to all parties (seller, real estate agents, lenders, and government agencies)
• Records the deed and mortgage with the county clerk

You do not need to hire your own attorney for a Florida real estate closing, though some buyers choose to have one review the contract. The title company is regulated by the Florida Department of Financial Services and must meet specific licensing and trust accounting requirements.

The Inspection Period: Typically 7 to 15 Days

The standard Florida real estate contract (the "FR/BAR" or "AS IS" contract) includes a due diligence period during which you can conduct inspections and investigations of the property. This period is typically 7 to 15 days from the date the contract is executed, though it can be negotiated.

During the inspection period, you should arrange for:

• General home inspection: A licensed inspector evaluates the property's structure, systems, and condition. Costs range from $350 to $600 for a standard single-family home.
• Four-point inspection: If the home is over 20 years old, many insurance companies require this inspection (roofing, electrical, plumbing, HVAC). Cost: $75 to $150.
• Wind mitigation inspection: Documents wind-resistant features to qualify for insurance discounts. Cost: $75 to $150.
• WDO (Wood-Destroying Organism) inspection: Checks for termites and other pests. Often required by lenders. Cost: $75 to $150.
• Pool inspection: If the property has a pool, have it inspected for leaks, equipment condition, and safety features. Cost: $150 to $300.
• Septic inspection: If the property has a septic system, a licensed septic contractor should inspect it. Cost: $300 to $600.

After inspections, you can negotiate repairs, credits, or a price adjustment with the seller. If you cannot reach an agreement, you can typically cancel the contract and receive your earnest money deposit back within the inspection period.

Why You Need a Survey

A property survey is a drawing that shows the exact boundaries of the property, the location of the home and any structures, easements, and encroachments. In Florida, lenders typically require a survey to ensure the property meets their collateral requirements. Even if your lender does not require one, a survey is strongly recommended to:

• Confirm the property lines match what you think you are buying
• Identify any encroachments (neighbor's fence on your land, your driveway on neighbor's land)
• Verify that additions or improvements (sheds, pools, fences) are within the property boundaries and comply with setbacks
• Identify easements that may affect your use of the property (utility easements, drainage easements, access easements)

Survey costs in the Orlando area typically range from $350 to $800 for a standard residential lot, depending on size and complexity.

Flood Zone Awareness

Flood zones in Florida are determined by FEMA. Properties in Special Flood Hazard Areas (SFHAs), designated with Zone A or Zone V designations, are at higher risk and typically require flood insurance for federally backed mortgages. Properties in moderate- to low-risk zones (Zone X) are not required to carry flood insurance but may still benefit from it.

Even if a property is not in a designated flood zone, heavy rain events in Central Florida can cause street flooding, drainage backups, and water intrusion. Standard homeowners insurance does not cover flood damage. A separate flood insurance policy is required for flood coverage. Check the flood zone of any property you are considering using the FEMA Flood Map Service Center.

For more detail, see our Florida Homeowners Insurance Guide.

Insurance Requirements Before Closing

Your lender will require proof of homeowners insurance before closing. In some cases, flood insurance may also be required if the property is in a high-risk flood zone. You cannot close on a home until the insurance policy is in place.

What you need to do:

• Contact insurance companies or an independent agent at least two weeks before closing
• Provide the agent with the property address, closing date, and replacement cost estimate
• Purchase a policy that meets the lender's minimum coverage requirements (typically replacement cost of the dwelling)
• Provide the lender with a copy of the policy or a binder confirming coverage is effective on the closing date
• Pay the first year's premium (or a portion, depending on the policy and your escrow setup)

Because Florida insurance can be expensive and some properties are harder to insure, get insurance quotes early in your home search so there are no surprises at closing.

Homestead Exemption Filing

After you close on your home and move in, filing for the homestead exemption should be one of your first priorities. The exemption reduces the taxable value of your primary residence by up to $50,000 for property tax purposes, and it activates the Save Our Homes cap on annual assessment increases.

Key details:

• File with the county property appraiser where the home is located
• Deadline: March 1 of the year following your purchase
• Late filing: Allowed up to 25 days after the TRIM notice is mailed (typically mid-September)
• Documents needed: Florida driver's license, vehicle registration, proof of ownership (deed), Social Security numbers for all owners
• The exemption automatically renews each year as long as you continue to occupy the home as your primary residence

For complete details, see our Florida Property Tax Guide.

Closing Costs in Florida

Closing costs in Florida for homebuyers typically range from 2% to 5% of the purchase price. These are costs paid at closing in addition to your down payment. Common closing costs include:

• Loan origination fees: Typically 0.5% to 1% of the loan amount
• Appraisal fee: $500 to $800
• Credit report fee: $30 to $50
• Title search and examination: $200 to $500
• Title insurance (lender's policy): Based on loan amount, typically $500 to $1,500
• Owner's title insurance (optional but recommended): $500 to $2,000 depending on purchase price
• Survey: $350 to $800
• Recording fees: $100 to $300
• Transfer taxes (documentary stamp tax): $0.70 per $100 on the deed and $0.35 per $100 on the note
• Prepaid items: Property taxes, homeowners insurance, and interest prorations into escrow

On a $400,000 home purchase with a conventional loan, total closing costs might range from $8,000 to $18,000, not including the down payment. Ask your lender for a Loan Estimate (LE) within three business days of applying, which provides a detailed breakdown of all fees.

Common Mistakes First-Time Buyers Make in Orlando

• Not getting pre-approved before house hunting: Looking at homes without knowing your budget can lead to disappointment or wasted time. Get pre-approved first.
• Underestimating Florida-specific costs: Insurance, CDD fees, HOA dues, and higher utility costs can add $5,000 to $15,000+ to your annual housing budget beyond the mortgage payment. Factor these in early.
• Skipping or rushing inspections: Florida homes have unique issues: older roofs, aging HVAC systems, and potential termite damage. Never skip inspections, and attend them in person if possible.
• Not checking the flood zone: A home in a flood zone can require expensive flood insurance that you may not have budgeted for. Check the flood zone before making an offer.
• Choosing a neighborhood without driving the commute: Orlando traffic varies dramatically by time of day. A 15-minute drive at 10 a.m. can become a 45-minute commute at 5 p.m. Experience the route during rush hour.
• Not understanding HOA and CDD fees: A lower purchase price in a new community may be offset by high HOA and CDD fees. Get the full cost sheet before making a decision.
• Failing to file the homestead exemption on time: Missing the March 1 deadline could cost you thousands in higher property taxes for the first year.
• Forgetting to set up utilities: Coordinate utility transfers well before closing day. You do not want to move into a home without electricity in a Florida summer.

Frequently Asked Questions for First-Time Buyers

How much do I need for a down payment in Orlando?

Down payment requirements depend on the loan program. Conventional loans typically require 3% to 5% down. FHA loans require 3.5% down. VA and USDA loans allow 0% down for qualifying borrowers. Assistance programs for first-time buyers may provide down payment help in some cases.

Can I use gifted funds for my down payment?

Yes. Most loan programs allow gift funds from family members for down payments and closing costs. You will need a gift letter stating the funds are a gift, not a loan, and documentation showing the transfer of funds.

What is earnest money and how much is typical?

Earnest money is a deposit you make when your offer is accepted to show you are serious. In the Orlando market, earnest money typically ranges from 1% to 5% of the purchase price. It is held in escrow by the title company and applied to your down payment or closing costs at closing. You get it back if the deal falls apart for reasons allowed in the contract (such as inspection issues or financing problems).

How long does it take to close on a home in Florida?

A typical residential real estate closing in Florida takes 30 to 60 days from contract acceptance to closing. Cash transactions can close faster, sometimes in 14 to 21 days. The timeline depends on financing, appraisal, inspections, and title work.

Do I need a real estate agent as a first-time buyer?

Yes, especially in a market like Orlando where Florida-specific knowledge matters. A buyer's agent represents your interests, helps you navigate the contract, connects you with trusted lenders and inspectors, and is paid by the seller's proceeds at closing (the fee is already built into the commission structure).