A home purchase is often a family’s single largest investment so you want it to be high-quality, comfortable, and a place for your family to grow. But getting to the point of actually buying a house can seem a little daunting and, frankly, can cause a lot of anxiety.
So let’s take a look at some basic steps necessary for buying a house in Ohio, to make the process a little more manageable and a lot less stressful.
Save for a down payment
It’s likely that this step in your home-buying journey will start long before you are ready to take the plunge and buy a home. Your down payment is the first part of your home’s purchase price that you pay at closing, while your mortgage lender will pay the remaining balance.
Typically, mortgage lenders in Ohio want you to contribute 20% of the purchase price as a down payment. However, government-backed loans, like VA and FHA loans, and some conventional loans allow for down payments much lower than that. Just be aware that having less than 20% down may come with risks, including the need for private mortgage insurance (PMI) and possibly higher interest rates.
Know your budget
A common mistake among home buyers is to start looking at homes before understanding what your budget will allow. There can be a huge difference in homes that are even just a few thousand dollars apart in price. Finding the right property within your budget can take time, but by understanding your budget before you begin your home search, you can stay focused and avoid frustration.
Secure a mortgage pre-approval
With a pre-approval, your mortgage lender confirms your budget and your financial credibility to builders and realtors. A pre-approval gives you multiple advantages in this fast-paced real estate market, showing the seller that you are a serious buyer and giving you an edge in the case that there are multiple offers on the house.
Find a real estate agent
The home buying process can be a bit daunting, but relying on the expertise and market knowledge of a professional real estate agent can go a long way towards making it less stressful. A good real estate agent will know what is happening in the local market and can give you advice on whether you’re making a solid investment, based on local housing market trends, comparable home prices in the neighborhood, and community development projects that could affect home values.
Choose a community
In reality, the most important factor in buying a home is its location. Why? The location of your home will impact the everyday life of you and your family, as well as the value of your investment. From determining which schools kids will attend to the proximity to work and family and the sense of community, the location of your new home likely will determine just how long you stay.
Start house hunting
While it is important to keep an open mind during the house hunting process, it is just as crucial to know which details you are not willing to budge on. Keep in mind that the home you choose should meet the needs of your family—now and in the future. Will your family be growing in the near future? Or maybe grown kids will be having kids of their own who will be coming to visit. Or maybe you are considering multigenerational living? Whatever your lifestyle, be sure your new home has the space to accommodate your family and your lifestyle.
Make an offer
Once you have found what you hope is your new home, it is time to put an offer on it. You want the offer to be attractive to the seller while still protecting yourself in the transaction. A contingency clause can be attached to an offer to purchase real estate, giving the parties the right to back out of the contract under certain circumstances that must be negotiated between the buyer and seller. But note that having too many contingencies tends to turn off sellers, so make sure to strike the right balance by asking your agent for guidance as you negotiate.
Prepare for closing
A lot happens between when your offer is accepted on a home and the final closing. From a title search to a home inspection and more, there are steps to protect both the buyer and seller in the transaction. In addition, if you are financing your home purchase, your lender will require a mortgage location as a condition of the mortgage. The mortgage lender wants legal documentation of the real estate they will be holding an interest in, what structures are on the property, and where they are in relation to the property lines.
Close on your new home
The closing agent is a neutral third-party person, oftentimes a title officer, an escrow company officer, or an attorney, who ensures that everything related to your closing is completed correctly and successfully. You and the seller likely agreed on who the closing agent would be as part of the original offer on the home. In addition to the closing agent, you may also have your real estate agent or an attorney present.
Buying a house in Ohio is oftentimes your largest investment, and a mortgage location helps to protect that investment and provide you with peace of mind that both now, and down the road your property is protected. With 50+ years of experience in surveying in all 88 counties of Ohio, and now in surrounding counties in Indiana, McSteen is a leader in the industry. Contact us or order a survey and let our team of survey professionals take on your surveying needs.
