\”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.
It seems like such a simple question! But answering it for someone who is not involved with the many details of home buying on a daily basis, well… that\’s a difficult task.
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. If you do not have the money to buy a home or can not get financing, then there is no reason to spend anyone\’s time looking for property. Proof of financial ability is the prerequisite for the entire process. If you have the money already in the bank, then a current bank statement or letter from the bank will suffice. If you plan to borrow the money, then a pre-approval letter from a mortgage lender is needed. If you do not already work with a mortgage lender, call me and I can give you a number of referrals.
List of Requirements. Make a list of all the features you want in a home, including its general location, school district, square-footage, finished basement, garage, yard space, etc. Also it\’s very important to list the price range of home you can afford. Then drive around the neighborhood and get an idea what properties are available. Take down the addresses of all the properties listed for sale.
Find a good Real Estate Agent. How do you determine good from bad? Look at the realtor\’s track record. How many houses did she successfully close last year? You want an agent with a great track record. You also want a realtor who specializes in buyer representation. Do not engage the services of an amateur with a realtor\’s license. After all, working with a realtor to buy a home costs you nothing. Her commission will be paid by the seller once the property closes. Call me if you haven\’t chosen a realtor yet. I promise you great service and attention.
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.
Writing an Offer: Most likely there will be one or two Columbus houses you like. You can envision yourself living there and already make plans on how to arrange the furniture. This is a sign that you need to write an offer. Your real estate agent will have a standard contract and can advise you on property values in the area. An experienced realtor will also be able to give you a good estimate of what the seller will accept. Your realtor will also recommend contract terms, such as inspection periods and other contingencies. The real estate agent submits your offer to the seller\’s agent and helps you respond to a possible counter offer.
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.
Once all the documents have been signed, the house is yours and you will be given the keys to it. Now it\’s time to celebrate.
Author Susanne Novak is a full time Columbus real estate agent specializing in helping 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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