Buying a home is exciting — but it can also feel overwhelming if you don’t know where to start. For most people, a home is one of life’s biggest purchases. While it may seem like a lot of work, owning a beautiful home in DeLand, Florida, is well worth the effort.

The real estate market is complicated, and first-time buyers have a lot to learn along the way. An experienced REALTOR® is essential to guide you through the process. The professionals at Bee Realty Corp help first-time buyers land their dream homes every day. To help simplify things, we put together this first-time buyers’ guide to help you navigate the DeLand real estate market in four easy steps.

1. Budgeting

Before you can embark on your home shopping journey, you have to know what you can afford. Buying a home is an expensive and complex transaction with multiple components.  We’ll break down the costs into two buckets:

Upfront Costs
There are several one-time, upfront costs you will pay throughout the closing process. Prior to shopping, your lender will help you complete a cost analysis worksheet to estimate how much funding you’ll need to bring to the table. There are many factors that can influence this total, but upfront costs are usually between 5% and 25% of the sale price. Here are some things to expect:

• Down Payment – The down payment, which can be anywhere from 3% to 20% of the sale price, is the largest upfront expense. The actual % you put down will depend on the type of loan. In many cases, 20% down allows you to avoid Private Mortgage Insurance, which protects your lender if you can’t pay your loan. Also, larger down payments mean lower monthly payments.
• Earnest Money – This is a portion of your down payment made after your offer is accepted. It’s to show the seller you are serious about purchasing the home. If you back out for any reason not covered in the purchase contract, you may forfeit your earnest deposit.
• Closing Costs – There are numerous fees buyers are responsible for at closing, which include loan origination fees, title search and insurance, recording fees, and several others. Closing costs typically range from 2% to 5% of the purchase price.
• Inspections – You will need to cover the cost of a home appraisal and any inspections you choose to do prior to closing.
• Escrow Funding – Many lenders require you pre-fund an escrow account, which will be used to pay your property taxes. Your first property tax payment will be funded from this initial deposit.

Recurring Costs

After your closing costs, you’ll begin making monthly payments. You’ll need to be sure your total monthly mortgage payment fits in your budget. The total payment is made up of 4 pieces: loan principal, loan interest, property taxes, homeowners insurance, and private mortgage insurance (if applicable). Your lender can help you estimate your monthly mortgage payment based on your target budget.

2. Pre-Approval

Getting pre-approved for a mortgage is an essential step. Without a pre-approval letter, you won’t be able to make an offer on a home. First, shop around for rates and choose a lender. Many lenders have a quick and easy online pre-approval process. You’ll be required to upload financial documents, including W2s, Tax Returns, and pay stubs, and your lender will assess your financial situation. Then, you’ll receive a formal pre-approval up to a specific dollar amount. Keep in mind — sometimes you’re pre-approved for more than you can comfortably spend, so the amount on your letter should not influence your budget.

3. Home Shopping

Once you’ve set a budget and received your pre-approval, it’s time to start shopping. If you haven’t selected an experienced REALTOR® by this point, now is the time to do so! REALTORS® have real-time access to home listings, so they’re well equipped to help you find homes that match your criteria. They can also book home tours on your schedule. Plus, when it comes to Volusia real estate, you want to choose a local expert like Bee Realty Corp. Once you’ve found the perfect home, your REALTOR® can help you draft a compelling offer and negotiate terms.

4. Closing

The closing process begins after your offer is accepted and typically takes four to six weeks. The longest part is getting your final approval for your mortgage. During this timeframe, it’s critical to avoid major changes to your finances or credit (such as large purchases or new loans). You’ll also have an opportunity to conduct inspections, negotiate repairs, and do a final walk-through. On closing day, your REALTOR® will guide you through the paperwork, and then the keys will finally be in your hands.

Remember, you’re not just buying a home — you’re building a future, and Bee Realty Corp is here to make sure you start strong. Understanding the home buying steps DeLand residents follow can make your path to homeownership a breeze. Ready to kick off your homebuying journey? Reach out to Bee Realty Corp today.