3 Things You Should Never Compromise On When You Buy a Home

Whether you’re searching for your dream home in Orlando, a golf course home for sale at Alaqua Country Club or something else entirely, there are three things you should never compromise on. Your future happiness depends on it.

3 Things You Should Never Compromise On When You Buy a Home

When you start your house-hunt, you’ll have a wish list – and you’ll probably star some of the items on it, meaning that they’re more “must-have” than “dream feature.” These are three things you should never compromise on when you’re buying a home:

The floor plan
Your budget
Commute times

#1. Never compromise on the floor plan.

You have to live in the home every day, and if it’s inconvenient – or if it’s too small, too large, or too anything, you’re not going to be happy with your purchase.

Before you start house-hunting, you’ll know how much space you want and how much you absolutely need. And while you can invest in renovations later to change the floor plan, or add bedrooms and bathrooms, it’s probably better to find a house that’s at least very close to what you want before you start your search. You’ll save yourself a lot of time – and money – later.

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#2. Never compromise on your budget.

Most people buy a home that’s pretty close to the amount that their lender says it’ll give them. But you definitely don’t have to spend that much – in fact, it’s smarter to buy under your budget than right at your budget. You’ll save money in the long run.

Besides, there’s more money involved in home ownership than the amount you pay for your monthly mortgage payments. You’ll have to handle homeowners association dues, maintenance and repairs, and any upgrades that you want to make.

Related: Interest Rate vs. APR

#3. Never compromise on commute times.

Five days a week – at least – you’ll be driving to and from work. Sure, you may be willing to take on a 30-minute commute to work… but will it really matter if it’s 35 minutes, or maybe 40 minutes?

Yes, it will. Because sitting in the car gets old – and it gets old, fast. Set your maximum commute time and stick to it – and just to be safe, try the commute before you put an offer on a home. Head to work from the neighborhood at the regular time, and head to the neighborhood directly after work. That way, you’ll get a good feel for how long the commute will really take.

Are You Buying or Selling a Home in Orlando?

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How to Boost Your Credit Score to Buy a Home

If you’re buying a golf course home for sale in Orlando or any of the surrounding communities, you know that you need to get your credit score as high as possible before you apply for a loan.

But where do you even start?

How to Boost Your Credit to Buy a Home

When you apply for a mortgage loan to buy a house in Orlando or elsewhere, your lender will look at your credit score. Here’s what they see:

You can get a free copy of your credit report, thanks to the Federal Trade Commission, here: https://www.annualcreditreport.com/index.action

Once you get your credit report, you can check to see what your creditors have reported about you – and you can dispute errors to raise your score.

If your credit score is below 680, you’ll most likely have to take a few steps to improve it so you can avoid paying extra fees or higher interest rates. You may also have to come up with a larger down payment (unless you’re using a federal or state program, such as a VA loan or first-time homebuyer program) if your credit is less-than-perfect.

Your credit history makes a huge impact on your credit score. Here’s the breakdown:

35% = payment history (on-time, late, and seriously late payments)
30% = amounts owed in proportion to the amount of credit you have
15% = length of credit history, with a longer history being more favorable
10% = credit mix you’re using, which should reflect several types of credit (car loans, personal loans, credit cards and other revolving obligations)
10% = new credit or new applications for credit

Stop applying for new credit at least a year before you apply for a home loan. Part of your credit score involves how much new credit you’re trying to get. If you’re applying for all kinds of new credit, it may appear that you’re short on cash and can indicate that you’ll have a tough time making mortgage payments.

5 Tips to Improve Your Credit Score

#1: Open a new credit account.

If you open up a new line of credit and it increases your total outstanding credit line, your utilization scores (the part of your score that relies on how much you owe in relation to the amount of credit people are willing to give you) will improve. Bonus points if it’s a type of credit you don’t already have, which will improve your scores in the “credit mix” department.

#2: Dispute all the errors on your credit report.

If you don’t have any errors, that’s great – skip ahead to tip #3.

#3: Pay down your debts as much as you can.

You’re looking to improve your debt-to-income ratio, so the less debt you have, the better.

#4: Get – and keep – your bills current.

Paying on time has a huge impact on your credit scores. Even if it means making small payments throughout the month ($10 here, $25 there), make sure everything is paid on or before its due date.

#5: Become an authorized user on someone else’s account.

The key is picking someone responsible with good credit – his or her full history from that account will show up on your credit report immediately. If it’s older and more established, even better. Just make sure the person has a good history with that account, because bad credit history shows up just like good history does.

Are You Looking for a Golf Course Home for Sale in Orlando?

We can help you find your dream home on a golf course in the Orlando area. Call us at 407-529-4621 or get in touch with us online to talk about what you need – we’ll make it happen!

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VA Loans: What You Need to Know if You’re Buying a Golf Course Home in Orlando

If you’re a veteran searching for a golf course home for sale in Orlando or any of the surrounding communities (including Longwood, College Park, Winter Park and Windermere), you’re likely eligible for a VA loan – but there are a lot of things people don’t know about VA loan benefits.

Here’s the inside scoop.

What is a VA Loan?

A VA loan is a loan that you get through a lender that the Veterans Administration backs. That means your lender can give you better terms and interest rates because the VA guarantees a portion of it – the lender won’t lose out if you default on your payments.

Even if you have a difficult time getting other types of financing, this VA program can help you purchase a single-family home, a condo or a manufactured home, or to build a home. You can even use your benefit to buy and “fix up” a house or make a house more energy-efficient.

Who’s Eligible for VA Loans?

If you’re a veteran of the U.S. Armed Forces or a current service member, or you’re a qualified dependent of a veteran or current service member, you could be eligible for a VA loan. You must have been honorably discharged from the service. (Learn more about VA loan eligibility here.)

VA Loan Benefits for Orlando Homebuyers

VA loans have several benefits, including:

No down payment. As long as the home’s sale price doesn’t exceed its appraised value, you don’t have to put any money down to buy a home with a VA loan.
No private mortgage insurance premium requirements. Most homebuyers who have less than 20 percent of a home’s sale price as a down payment must buy private mortgage insurance, or PMI, until they’ve paid down at least 20 percent of the home’s value. That’s not the case with a VA loan – there’s no PMI requirement.
Closing costs are limited. The VA limits the amount of money you can be charged for closing costs when you purchase with this type of financing. Even better, sellers are allowed to pay your closing costs, which can help you get into a home with very little money up-front.
Lenders can’t charge you early repayment penalties. With many types of home financing, lenders are allowed to charge borrowers early repayment penalties (that’s so they can make up the money they’re losing in interest payments). If you use a VA loan, though, lenders are forbidden to charge you early repayment penalties; you can make extra mortgage payments and pay off your loan faster without any repercussions if you want to.
Help if you can’t make payments. If you’re unable to make your mortgage payments, you can go to the VA and ask for help. There’s no guarantee that they will help you, but there are programs in place to do just that.

VA Loan FAQ

What’s the maximum debt-to-income ratio on a VA loan?

There’s no maximum debt-to-income ratio, or DTI, on a VA loan. Most lenders look for a DTI that’s lower than 36 percent, but the VA does not put a limit on it – and if your lender wants to approve you but your DTI is over 41 percent, the lender must provide the VA with compensating factors.

What is the maximum VA loan amount?

There’s no maximum VA loan amount, but the VA does limit the amount it will guarantee. The current limit is $417,000 in most parts of the country, but you can double-check here.

What’s the minimum credit score requirement for VA loans?

The VA doesn’t require a minimum credit score, but your lender might. However, even if your lender does have a minimum credit score requirement, the lender must still look at your entire loan profile before making a lending decision. That means many veterans who wouldn’t otherwise be eligible for financing can still get it with the VA’s help.

Can you only get one VA loan?

You can only get one VA loan at a time – but during your lifetime, you can get as many as you’d like to as long as the last VA loan you got is paid off. The benefit never expires, so even if you served many years ago and meet the requirements for this type of loan, you can use it.

Are You Buying a Golf Home in Orlando?

We can help you find your dream home on a golf course in the Orlando area. Call us at 407-529-4621 or get in touch with us online to talk about what you need – we’ll make it happen!

While you’re here, check out our:

3 Things You Should Never Compromise On When You Buy a Home