Does the path to homeownership seem foggy? Are you uncertain of the steps to the process? Today I want to walk you down the path of Homeownership. My goal is to help you understand the steps involved in the process of buying a home.
Maybe its been a while since you last bought a home or maybe you are a First Time Home Buyer. Either way I want to give you 15 steps to buying a home and walk you down the path to homeownership.
I have condensed this article down to a convenient downloadable check list, check it out on my Buying page of the Resources section. There is also a Home Buyers Vocabulary sheet that you can take a look at.
1. Find a Good Lender
Some people prefer to go to their current bank and if your bank offers home loan products then that would be a good place to start. You may also want to check out other local lenders that specialize in home loan products.
2. Get Pre-approved
This step is very important. This will allow you to find out your purchase limit and it will help you know what your closing costs will be. I would also like to point out that almost every property you look at will require you to be pre-approved.
3. Decide on a Budget
You may not want to go right up to your limit when purchasing a home. You might be approved for $150,000 but you may be more comfortable staying around $125,000.
4. Find a Good Local Realtor
I like to stress the LOCAL part. The Realtor that you decide to work with should be an expert in the local market and should have experience in the area you prefer to move to. If you are in the Northeast Ohio area give Nova Star Real Estate a call, Stark County or Ashtabula County.
5. Make a Needs and Wants List
I go over this step in more detail in my post 5 Tips to Finding Your Dream Home. Once you make your lists give it to your Realtor, so they can get to work finding you’re your dream home.
6. Decide on a Location
Unless you’re relocating you will probably already know where your desired location is. If your relocating your will then need to rely on your Realtor to help you find a location that fits your needs.
7. Research that Location
Your Realtor will be able to help you in this area. You will want to know as much as you can about your location including home values and amenities to make sure that area is a good fit for you and your family. This will also help you to be confident that you end up with a good deal on the home you purchase.
8. Start Your Home Search
Finally, we get to the fun part. By now you have nailed down your budget, location and type of home that you desire. Since you have already gone through steps 1-7 your Realtor can narrow your search down to homes you will truly be interested in.
9. Find Your Dream Home
I always tell my buyers that they will know when they have walked into “The ONE” they must have. I remember when I found my own home, we looked for about two months then finally we walked into “The One”. We just knew it was it, we wrote the offer up right then. When you find the right one you will know.
10. Make an Offer
It’s very exciting for buyers to put in an offer. You will want to make sure your offer reflects the current market conditions.
This is where good Realtors shine! Your Realtor will be able to guide you through the negotiation process. If you put in a good offer to begin with there may not be much to negotiate but I guarantee if you “Low Balled” the offer then this process will take some time and energy.
12. Hire a Good Home Inspector
Most buyers think that once they have an accepted offer all the work is done but a whole new set of chores have just begun. You need to schedule all inspections and have all repairs completed before closing. This may take some more negotiating.
13. Find a Good Home Insurance Provider
This may be easy if you already have a good insurance agent and a policy that you are comfortable with. First Time Home Buyers will have a little more work involved trying to find a good insurance agent and policy and learning everything they need to know to understand their policy.
14. Avoid All Credit Purchases
Making a credit purchase at this point of the process can ruin the whole deal. Never buy anything that involves a loan, like a vehicle. Be very careful when purchasing items with your credit card, make sure you have your balances paid down.
15. Closing and Moving
You made it! The title company will schedule a time for you to sign all the closing documents. I want to point out that in a typical transaction you will not receive keys to your new home at closing. You will have to wait until the title company files the deed at the county recorders office. This could happen the same day as closing but it is usually the next business day.
The Path to Homeownership may seem complicated but if you are working with a good local Realtor they will be able guide you each step of the way. If you are looking to buy a home in the Northeast Ohio area give Nova Star Real Estate a call.
I hope that I have been able to help you understand the buying process better. Leave me a reply or send me a message if you have any questions about any of the steps of the home buying process. Thank you for reading, I have enjoyed walking down the path of homeownership with you!