\”What do I need to do to buy a house?\” This is the questions I get from most of my customers, when they call me the first time.
What a great, fundamental question! The process of buying your first property has many details and steps to it. And it is a difficult process to understand if you are not involved with real estate on a daily basis.
Based on my many years helping people to buy houses, I\’ve distilled the process down to seven simple steps. Each buying situation will have its own unique fine points, but these seven steps are crucial in most situations.
So, let\’s get started:
Proof of Financing. It is crucial that you can show a prospective seller that you either already have the cash to buy a home, or that you can obtain a large enough mortgage loan. Otherwise, you should not be house hunting in the first place. A letter from your bank stating that you have sufficient funds available will suffice, as would a pre-approval letter from a lending institution. Call me if you need referrals for loan officers.
List of Requirements: Create a wish list of everything you are looking for in a home. This includes the area you want to live in, the school district, the size of the house (bedrooms, bathrooms, square footage), if you need a yard, a basement, a garage, and most importantly what price range you can afford. Once you settle on an area, drive around the subdivisions to get a good idea of the houses available. Also, write down the addresses of homes listed for sale.
Work with a Real Estate Agent. It is best to work with a full-time realtor. This will not cost you anything, by the way. Your realtor\’s commission will be paid by the seller upon closing of the property. You want to find a realtor who has been successful at closing transactions in the past and who specializes in representing buyers. Beware engaging the services of someone who works in real estate as a hobby, even if it\’s a family member or friend. If you don\’t have a realtor yet, give me call and let\’s talk.
House Hunting: Once you\’ve shared your wish list from Step 2 with your realtor, she will give you a listing of properties that match your criteria. Go online and take a look at them. Most will have pictures and perhaps even virtual tours. Choose your top 5, and then ask your agent to schedule showings for you of the properties. Once you\’ve seen all five, talk about your reactions with your realtor, and try to remember each property\’s strengths and weaknesses. Bear in mind that it can often take up to 15 showings to find a property that\’s right for you. And also bear in mind that you may have to compromise a bit if what you want is not within your price range.
Make an Offer on the Property: In Columbus Oh, you will usually find one or two houses you like. If you can yourself imagining living there, then that\’s a good sign that this is a property you should write an offer for. Work with your real estate agent to come up with a good asking price. Your agent will also have a standard Purchase Agreement to fill out, and will talk with you about any terms you might want to include in the offer, such as contingencies, inspection terms, etc. Typically, your realtor will submit your signed offer to the seller\’s realtor.
Property Inspection: Once your offer is accepted, many steps have to be put into motion. First you\’ll have to go to the lender who pre-approved you and submit your final paperwork for the official loan. At the same time, the lender will order a title search, and a property appraisal and survey. You will need to hire the services of a home inspector, but your realtor can schedule the inspection with the seller. Plan to accompany the inspector on his tour of the home. He will probably spend 2-3 hours examining the house from top to bottom and will explain to you whatever he sees along the way. You will learn a tremendous amount about your new home from him, including the condition of the roof and in what timeframe you might need to replace it. The inspector will send you a written report which you should review with your realtor. Depending upon the findings, you may need to go back to the seller o request remedies to problems.
The Closing: The last step in the home buying process is the closing. Your agent or mortgage lender will schedule the closing with a title company, which handles all the paperwork between you, the seller, your mortgage lender, tax offices and the realtors. The closing is a meeting where all necessary paperwork will be signed. The title company makes sure that the property you are buying is free and clear of any liens. They will also record your deed to the home with your county\’s Auditor\’s Office. Most closings take 30-60 minutes, but you can speed it up if you read through the documents the day before. The title company will provide you with a copy of the documents 24 hours before the closing.
That\’s it. It may be confusing, but don\’t worry. If you work with an experienced real estate agent your home purchase experience will not be stressful and everything will go smoothly.
Author Susanne Novak is a full time Columbus real estate agent who helps home owners buy properties at discounted prices. Read her blog to find and successfully purchase the best Columbus OH Homes for Sale.
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