Step 1: Figure out financing and your affordability. 

  • How will you pay for it and can you get a loan?
  • How much can you afford?
  • Down payments,

The first step to buying a home is figuring out if you can buy a house and how you will pay for it.

  1. The first step to buying a home is figuring out if you can buy a house and how you will pay for it. If you will be paying cash, then it’s obvious you can purchase a home and what your budget will be. If you plan on taking a loan then you need to make sure you can get a loan. First call a lender (see recommended lenders here) and see if you qualify for a mortgage. If you don’t, very often first time home buyers have a cosigner. Ex. a parent who does qualify can sign on the loan for you.
  2. Just because you have the cash or qualify for a large loan, doesn’t mean you can afford the house. Remember, that besides a mortgage payment there is also home insurance and property tax. Property tax is a huge factor in your affordability. So, for example, if you are buying a house for $300,000 and the current property taxes are $4000, after you purchase the house, chances are the property taxes will shoot up. Your lender and most realtors will not tell you this. You need to be able to afford your monthly payments including what property taxes will shoot up to. I can help you figure this out.
  3. How much money do you need for a down payment? In most cases you need as little as 3% of the purchase price as a down payment. However, if you are buying an expensive home you may need more. Similarly, believe it or not, there are programs that require as little as 0% down. One famous one is a Dr’s loan. However, there are low income programs that will pay the down payment for you. See Down Payment Assistance.

Step 2: Figure out where you want to live and what you want in a house.

  • What neighborhood should I move to?
  • What are things that are a deal breaker for me in a house?
  • What type of house should I practically expect?
  1. What neighborhood should you live in? Sometimes the answer is made for you. For example, your budget may only allow you to buy in certain areas, or your job may require you live somewhere specific, you need services of a specific school system etc….There are also your kids friends, what area has kids in the same school as my children? These are some things to consider.
  2. What are deal breakers for me? Do I need 4 bedrooms? A master bath? A big yard? A swimming pool? Ferris wheel? Bowling alley…………….
  3. Most people looking for a house want the same thing. Min 4 bedrooms, a master bath, a family room, large kosher kitchen and big backyard. However, other than Beachwood you may get none of the above or just some of them. Some areas are mostly 3 bedrooms and have no master bath, no family room, small backyards and small kitchens. Certain parts of certain blocks can have some of them. Beachwood very often has all of them………on certain blocks! So how do you get these features if the houses don’t come with them? You will need to add them. But it’s like you can’t get some or all of these all over. So in short we should talk to discuss what you can expect both within your budget and location.

 

Step 3: Start looking for a house (with Gavi of course!)

  • How do I look for a house?
  1. How do I look for a house? I see houses online that I like but are they near shul? This is the purpose of this website. Everything on this website is within areas you may want to purchase a home. However, lots of homes sell before getting posted, so make sure you are in close touch with me to snatch them first!

 

Step 4: Make an offer

  • What’s an offer?
  • Do I need an attorney?
  1. I found a house I like. Now what? Well we need to make an offer. Offers in this part of the country are actual contracts. We present the Seller with a contract. An accepted offer means the Seller signed your contract (Under Contract)!. There are things that need to be negotiated which is a big reason that you have a Realtor! In NorthEast Ohio we don’t get attorneys involved. Your Realtor negotiates on your behalf and puts together a contract for you.

Step 5: Do inspections

  • What inspections should I do?
  • How do I know who’s a good inspector?
  1. I am under contract. Now what? We need to get an inspector. What type of inspections should I get? So people usually start with 2 inspections. 1. A general home inspector and 2. Radon inspection. A general home inspector is trained to recognize issues. For example, he can recognize a plumbing issue but is not a plumber. If the General Home Inspector notices an issue that needs further checking, he will recommend that you bring an industry specific contractor for that specific issue.. Plumber for plumbing…. 2. Radon inspections are recommended when purchasing a home. Radon is the second leading cause of lung cancer, after cigarette smoking, in the United States. However, every home does have Radon, it just can’t be a high level of Radon. There are areas that are known for their high levels of radon. In our neighborhoods it’s not common but people have found high levels of radon.

Step 6: Secure your financing. 

A pre approval for a loan is not an actual approval. After finding a house, you need to make a formal application for a mortgage and go through the process of getting a loan. If you are paying cash, make sure the cash is available to use for the purchase of your home.

Step 7: Get your home insurance set up

Before closing, make sure to get home insurance. You can check in our Directory for a list of recommended insurance brokers.

Step 8: Reserve a mover

Movers get booked up. If you are moving long distance, dates can be a factor. So make sure you reserve your spot.

Step 9: Close and move

Lchayim!

Step 10: Make Aliya or move with Mashiach. Whichever comes first!