5 Steps of Home Buying Process

5 Steps of Home Buying Process

So, you have finally decided to become a homeowner in Wooster, Ohio. Knowing the home buying process can help you prepare for the chaotic back and forth with offers, counteroffers, and a plethora of paperwork. So for your understanding of the home buying process, especially if you are a first-time homebuyer, here are the 5 basic steps.

#1 Considering and Securing Your Finances

Knowing your budget is a very important factor in the home buying process. You can apply for various mortgage plans offered by USDA, FHA, VA, etc. However, the lender you choose depends on your individual circumstances. PRMI – Wooster is equipped to work with you to find the right solution for your financial needs.

Always keep in mind that you will have to contribute between 3% and 20% of the house’s purchase price as a down payment. This means if the house you want to buy is worth $200,000, you may have to pay between $6,000 and $40,000 as a down payment from your own pocket. So consider your finances before moving forward to the next step.

#2 Finding a Home

You must do extensive market research when it comes to house hunting. You can use online listings, drive around the area where you would like to live, and/or use a real estate agent. You can also ask your friends, family, colleagues, and other business contacts to keep an eye out if they know of a good home up for sale.

If you plan to attend open houses, do not do so without a real estate agent. This is important because you will most likely be dealing with a seller’s agent and having your own ensures your wishes will be represented.

#3 Making an Offer

Work with a real estate agent instead of trying to make the offer on your own. They will be able to help you decide how much money to offer for the property and what should be a part of your consideration. Once you have your offer, the agent will present the offer to the home seller’s agent. The seller may accept your offer or come up with a counteroffer. It will then be up to you to accept, negotiate, or simply move on.

Consider your finances before making an offer or accepting a counteroffer. Do not exceed an offer that is outside of your budget or mortgage limit.

#4 Home Inspection

No matter how perfect the house may look, it is always wise to have a trained professional inspect the home for safety, quality, and overall condition as your potential new home. You do not want to end up with a home that requires extensive work, such as a worn-out basement, plumbing, foundations, structure, or roof issues.

If the home inspector finds a serious defect in the home, you may be able to renegotiate with the seller for a lower offer, closing costs, or ask the seller to repair the defect.

#5 Closing the Deal

If you have sailed through the first 4 steps, it is now time to close the deal. This involves signing paperwork and appraisal of the home by the mortgage provider. In addition to your downpayment, you will also have to pay the closing costs, including mortgage origination fees, surveys, title insurance, credit report charges, and taxes.

PRMI – Wooster has been helping clients purchase homes since 1998 and is backed by one of the most established mortgage lenders in the county with a nationwide presence. We offer a variety of loan programs for the greater Wooster, Ohio area – including Canton and Medina, Ohio. Are you looking for a trusted lender? Contact us by phone at 866.888.7902 or email Matt Shanlian at mshanlian@primeres.com.

*Opinions expressed are solely my own and do not express the views of my employer.

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