Home Buyers Guide

In this general overview we will go through the home buying process step by step. If there is anything you feel is not written here, just get in touch with me and we will figure it out. There are many specific scenarios that can come up throughout the process than can fill a book. That is why you call Gavi to help you through it!

1rst step: Decide you want to buy a home! 

Making the decision to buy a home is overwhelming for many people. It’s a commitment; a big one. So if you have decided to buy a home, tap yourself on the back!

2nd step: Budget: See how much you can afford. 

  1. If you are paying all  Cash then you obviously know how much money you have for your home purchase. However, you will still need to pay property taxes, home insurance and utility bills. Make sure the home you buy will be affordable to maintain.
  2. If you are planning on getting a mortgage for your home purchase, then you will need to Get Pre Approved For a Mortgage. Reach out to a mortgage broker to make sure you are eligible for a mortgage loan. If you are eligible for a loan, how much of a loan can you get? Very Important: Just because you can get a high loan, it doesn’t mean you can afford it. Tell your mortgage broker what you can afford monthly and have him advise you up to how much you can pay for your home. Don’t forget property taxes, insurance and utilities.  (see this article on how to find a good mortgage broker)

3rd step: Get a Home Finder. A good one! Not just a Realtor.

I come across people who are scared of Realtors. Instead they go on websites like Zillow and Trulia. Little do they know, these websites will send them directly to Realtors. Secondly, these websites are not accurate (we will discuss how these websites operate in another article. Stay tuned)

So what do I want in a Realtor.  Anyone can be a Realtor. In fact there are thousands of Realtors in NorthEast Ohio. Just because someone is a Realtor it doesn’t mean they will be a good “home finder”. You need a home finder. Someone that will go out of his/her way to find you your home. They don’t teach you that in school.

4rth step: Finding a home: 

Your Realtor will start emailing/calling you about house options. He/She will take you around to different options until you find the house you like. When you decide “I want to buy this house”, tell yourself “I just finished step 4 (lol)!

5th Step: Putting an offer to purchase the house.

If you want to buy this house then you need to submit an offer. An offer in Northeast Ohio is an actual signed contract to purchase the house. As long as the buyer is the only signature on the contract it’s called an “offer”. If the seller agrees to accept your offer then he will sign the contract as well. That’s called “Acceptance of offer” and you are now in contract!

6th Step: Getting a home inspection

Now that you are in contract you need to get a home inspection. Your home inspector will thoroughly inspect the house. However, he will not advise you regarding if the house is a good deal or not. After receiving the inspection report you will have a decision to make. 1. Move forward with the home 2. Renegotiate ex. Lower the price because of a certain material defect found in the home. 3. Back Out of the deal.

Depending on your decision is what the next step will be. 

Whether you decide to move forward with the deal without any conditions, or if you decide to renegotiate the terms, this will be done with a form called Removal Of Contingencies(ROC). In this form you will spell out how you want to proceed. The owner of the house will either accept it by signing it, reject it [which would mean you are no longer in contract], or counter offer you regarding your new terms.

However, if you decide to back out of the deal, you will need to have a release signed by both you and the seller. 

7th Step: Getting you mortgage

Now you are really in contract so you better get your money together. A pre approval for a mortgage is not an actual approval. Your mortgage broker will now have you fill out lots of paperwork and have you submit your financial documents. It can take 30-45 days to actually get your approval for your mortgage.

8th Step: Closing

It’s now closing time. Your title company will get in touch with you to set up a time for you to sign the closing documents. After you do sign them, they will file them with the city and transfer the home into your name. You are now the homeowner!…………and finished step 8!