Buying a new home for the first time can be very exciting. Having a home to call your very own is a milestone that most people strive for. However, the process of purchasing a house can be confusing.
If you are a first time home buyer, there are some things that you need to know. Below we are going to go over some tips that can help your road to homeownership a bit easier.
How Large Should Your Down Payment Be?
This is a question that most people buying a home in Ohio ask. The truth is the more you put down on your home, the lower your monthly payments will be.
Most home loans require you to put down 10% to 20%.
But some government-backed loans will allow you to put down as little as 3% if you are a first time home buyer. This is great news for those working with a tight budget.
What About My Credit Score?
You might be wondering if your credit score really matters when buying a home in Ohio. The answer is a big yes!
Your credit score is very important and could even keep you from qualifying for a home loan. So before you go house shopping, make sure that you check your credit score.
If you have a good to fair credit score you should not have trouble getting a loan. Also, if you have a great credit score your interest rates will be much lower.
If you have bad credit you should think about boosting it before trying to buy a home.
What Should I Look For In A Real Estate Agent?
To find the home of your dreams, you will need to work with a real estate agent. But not just any agent will do.
You need to find someone that is from your local area and knows the market. He or she should also have plenty of experience selling houses.
You should feel comfortable working with the agent, so hiring someone you get along with is highly important.
Most agents get their commission from the seller, so finding an agent that does not have a conflict of interest is wise.
Shop Around Before You Buy
It might be tempting to jump on the first house you find, but good things come to those that wait! When looking for a home to buy, make sure you view plenty of homes before settling on one.
There are a ton of homes on the market which will give you a lot of options. By viewing many different houses you will get to see first hand what is out there.
Then when you have narrowed down your choices to one, you can make a deal. This will help reduce the chances of buyer’s remorse later down the road.
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After you have checked your credit and found out that it was suitable, you should think about getting pre-approved for a loan. This will give you more leverage when shopping around.
For example, when a seller notices that you are approved for a loan, they will be more willing to deal.
Most motivated sellers will give buyers that are pre-approved preference over those that are not. This could give you an advantage if the house you are bidding on has more than a few offers.
Learn To How To Negotiate
One of the most exciting things about purchasing a new home is the negotiation process! In many cases, sellers may be willing to come down on the price of the home with the right offer.
If you find a home you love, don’t be afraid to negotiate. Submit the seller an offer that you think is reasonable.
He or she just might take you up on your offer. However, the seller will likely meet you somewhere in the middle.
This helps the buyer save some money while the seller gets to move the house quickly. Keep in mind that making a low ball offer is not advisable. This could insult the seller and any deal will be off the table.
What About Other Expenses?
There are many costs associated with buying a home in Ohio. Not only do you have to have a down payment there are also closing costs. These costs can range from 3% to 5% of the total value of the property.
Closing costs will have to be paid before your name can go on the title of the home.
In addition to closing costs, you will need to factor in the cost of moving. If you need to hire a moving company to bring your items to the new home, that will cost you.
Depending on the size of your move and the distance, you may end up spending a few thousand dollars. So factor in moving cost when you are budgeting to buy your new home.
Do I Have To Pay For An Inspection?
If you are serious about buying a home you will need to pay for an inspection. No mortgage company will give you a loan without first knowing the true value of the property.
This can be determined by a home inspection. Additionally, having the home inspected will protect your new investment. You will learn if there are any pitfalls in the home such as a bad foundation or a leaking roof.
While the seller is supposed to be upfront about these things, you can never be too sure. It is better to be safe than sorry. So before you buy a home always have it properly inspected.
These are a few of the things you should consider when buying a home in Ohio.
Remember that having a great credit score, and a sizable down payment can help lower your monthly payments and your interest rate.
When house shopping try to find a great real estate agent to help guide you in the process. This will help make things go much smoother for you!
Have Questions? Ask Regan!
Your real estate agent is the best source of information about the local community and real estate topics. Give Regan Van Kerckhove a call today at 513-720-1290 to learn more about local areas, discuss selling a house, or tour available homes for sale.