The process of obtaining pre-approval, or pre-qualification, can be broken down into three main steps. First, you submit your credit score, income, and debt history to the lender. Second, the lender assesses this information to determine the amount you may be approved for and the estimated interest rate. Third, you receive the approval letter to attach to your actual offer. If you start looking at properties without going through this process, it's common to get attached to homes that are outside your budget.

First, let's look at housing prices in Orlando. According to Zillow, the average home value is $376,216, which is a 2.8% decrease from the previous year. In the Orlando metropolitan area, the median sales price is projected to be between $380,000 and $385,000 by March 2026. Recent market trends show an increase in inventory, shifting the market slightly in favor of buyers.

Here are the items to check during the pre-approval stage:

• Down payment requirements based on credit score ranges. For FHA loans, a score of 580 or higher requires 3.5%, while scores between 500 and 579 require 10%.
• The minimum down payment for conventional loans. First-time home buyers or those with an area median income of 80% or less can start at 3%, while the typical minimum is 5%, and PMI applies if the down payment is less than 20%.
• DTI, or debt-to-income ratio. It's advisable to calculate the ratio of your existing debts plus the new loan payments to your monthly income in advance.
• Eligibility for down payment assistance programs. Florida Housing's Hometown Heroes program offers up to $35,000 in assistance, but reports indicate that the budget for the 2025 fiscal year may be exhausted by February 2026.

Having these four items organized in advance will make your first consultation with the lender much smoother. Sources include FHA.com, NerdWallet, and Florida Realtors.

Property taxes can be calculated based on Florida's average effective tax rate of 0.79%. However, the Orlando metropolitan area, including Orange County, has a range from a low of 0.44% to a high of 0.99% depending on the county, so it's necessary to check the specific address of the property. If you qualify for the homestead exemption, your actual burden will be reduced.

Interest rates, according to Freddie Mac PMMS, are around 6.6% for a 30-year fixed mortgage as of July 2026. The interest rate at the time of pre-approval may differ from the actual closing date, so it's wise to confirm the lock-in option with the lender.

DTI, or debt-to-income ratio, also directly affects the pre-approval results. If you have existing auto loans or student loans, adding the new mortgage payments can reduce the amount you may be approved for, so it's helpful to organize or plan to pay off existing debts before applying for pre-approval.

Orlando is a region with steady rental demand due to its tourism industry, leading to many inquiries for investment purposes. However, it's safer to check for vacancy risks and HOA regulations rather than assuming a definitive increase in property values.

Closing costs are also an item to address during the pre-approval stage. Combining loan origination fees, appraisal fees, and title insurance can add between 2% and 5% to the loan amount, and property taxes and homeowners insurance premiums are often required to be paid in advance. When receiving the pre-approval letter, it's a good idea to request a closing cost estimate from the lender to understand the total cash needed before making an offer.

Preferred school districts for Korean families are located in several areas of southwest Orlando. While you can refer to ratings from GreatSchools or Niche, school district boundaries change frequently, so be sure to verify the assigned school for the specific address before signing a contract.

This article is not investment or legal advice, and it's recommended to confirm program budgets and loan conditions with the lender and professionals at the time of application.