Time and again, I hear a new client say, “I want to buy a home. What do I need to do?”
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.
The seven steps are:
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: At the top of your list, write in the price range you can afford to buy. Then start to list all the features you want in a home, including location, size, number of bedrooms, garage, finished basement, paved driveway, etc. Then take a drive to the neighborhood you’re interested in and look around to see what’s for sale. Take down the address of listed properties.
Get a Real Estate Agent: I recommend you go with a full time professional realtor. This does not cost you anything – he/she will be paid by the seller when you close. You want someone who closes many transactions and has experience representing buyers. Most agents just list properties and do deal with buyers. Your second cousin who got a license a while ago and sold a single house last year may not be the best choice. If you don’t work with a realtor yet, please give me a call. I promise you will get the best service and most attention.
Looking at Houses: Give your wish list from Step 2 to your realtor. Based on your preferences, she will locate a number of properties that fit your list, and send you their addresses. Go online and look at them. Most listings these days come with pictures, and some even offer virtual tours. Choose the 5 you like most, and then ask your realtor to set up showings for you. Bear in mind that this first round of showings will probably not be the only properties you’ll tour. It often takes 15 viewings to find the right home. If the home you want is out of your price range, consider making some concessions for a good lower-priced home.
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 the seller countersigns your offer, you’ll need to go back to the lender who pre-approved you and submit the final paperwork. Your lender will order a survey, appraisal and title policy for the property. You will need to schedule a property inspection to ensure there are no major problems in the house that you didn’t catch during your tour. Your real estate agent or you lender can recommend an experienced inspector and can make the inspection arrangements with the seller. A typical home inspection takes 2-3 hours, and you should plan to accompany the inspector; you will learn a tremendous amount about your new home through the eyes of an experienced inspector. You’ll receive an inspection report a couple of days later and should review it with your realtor. It may necessitate your going back to the seller to ask for remedies.
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.
About the 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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