Marshall Drake
The 'Pro to Know' for Residential & Commercial Real Estate!
Phone: (614) 226-3922   |  
Home Buying Process
Home Buying Process –
 
Buying a home can be a very challenging undertaking however, an initial step is deciding if home ownership is right for you and your family. Create a household budget, take into account the extra responsibilities and costs that come with home ownership.
 
Check Your Credit Report – Before getting a loan of any kind, you should consider checking your credit score. The Fair Credit Reporting Act (FCRA) requires each of the nationwide credit reporting companies — Equifax, Experian, and TransUnion — to provide you with a free copy of your credit report, at your request, once every 12 months. The FCRA promotes the accuracy and privacy of information in the files of the nation’s credit reporting companies. The Federal Trade Commission (FTC), the nation’s consumer protection agency, enforces the FCRA with respect to credit reporting companies. A credit report includes information on where you live, how you pay your bills, and whether you’ve been sued or have filed for bankruptcy. Nationwide credit reporting companies sell the information in your report to creditors, insurers, employers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home.
 
Do the Math – Figure out How Much You Can Afford – Some of the worst advise I have ever received as a new home buyer was to ‘buy more home than you need’! Do the math, create a household budget that will help you get a handle on the inflows and outflows of your finances. There are countless on-line mortgage calculators to help you estimate a monthly payment. You’ll need to factor in earnest money, down payment, closing costs, fees, relo fees and any costs for remodeling or new furniture. I can help you find a mortgage loan expert to help you understand all the loan options, closing costs and other costs and fees associated with home ownership. Remember, don’t let a mortgage payment become an ‘anchor around your neck’, consider a mortgage payment that will also allow you to save for your retirement, take a vacation or save college tuition for a loved one.
 
Get Pre-approved for your Loan – Once you have the right mortgage lender, be certain to get a ‘pre-approval’ letter. A ‘pre-approval’ will give you a better idea of the size of home loan you can afford and is ideal to obtain prior to shopping for a new home. When you do find that dream home, you are ready to make an offer and in the Seller’s eyes – you will be viewed as more appealing and serious as this key step will have already been completed.
 
Find your Dream Home – Make a list of the key items you need to have in a house, consider listing out your ‘must-have’s’, location, and appreciation of the area. To further understand specific neighborhoods and crime statistics, contact the local police department for that area. Also, for school reporting and performance checkout reportcard.education.ohio.gov, this website lists the scorecard for all schools systems in Ohio.
 
Make the Offer – Now that you have found your dream home, you need to make an offer. Always consider having a home inspection competed and contingent on the purchase contract. Most Sellers price their homes accordingly and expect some haggling on the purchase price. Additionally, I can provide you with key market analytics to help you make a good business decision and offer. Once the offer is made – it’s not final. The Seller may counter-offer to which you may elect to counter-offer (think of a good tennis match!) – but don’t expect to go-back-forth too much. Eventually, we will need to meet in the middle. Once we have agreed on price, you’ll need to make an earnest money deposit, money that goes in escrow to give the Seller as a sign of good faith.
 
Get the Right Mortgage – There are 3 key types of home loans – adjustable, fixed rate, and interest only. Adjustable-rate-mortgage (ARM) is a type of mortgage in which the interest rate paid on the outstanding balance varies according to a specific benchmark. The initial interest rate is normally fixed for a period of time after which it is reset periodically, often every month. The interest rate paid by the borrower will be based on a benchmark plus an additional spread, called an ARM margin. An adjustable rate mortgage is also known as a "variable-rate mortgage" or a "floating-rate mortgage". A Fixed Rate Mortgage – is a mortgage that has a fixed interest rate for the entire term of the loan. The distinguishing factor of a fixed-rate mortgage is that the interest rate over every time period of the mortgage is known at the time the mortgage is originated. The benefit of a fixed-rate mortgage is that the homeowner will not have to contend with varying loan payment amounts that fluctuate with interest rate movements. Lastly, an Interest Only Mortgage -for a set term, the borrower pays only the interest on the principal balance, with the principal balance unchanged. At the end of the interest-only term the borrower may enter an interest-only mortgage, pay the principal, or (with some lenders) convert the loan to a principal and interest payment (or amortized) loan at his/her option.
 
Close on Your Home – Setting a closing date and possession that is convenient for all involved can be tricky. Success is understanding the needs of each party and having flexibility in working out the fine details. Your mortgage lender will provide you with a HUD-1 statement that clearly itemizes all costs associated with closing the loan: earnest money, loan down payment, title fees, appraisal fees, inspection fees, and other related costs.
 
Move In – You have your mortgage, closed the deal and keys in your hand! Time to call the movers, family and friends to help you start your dream – Home Ownership! Buying a home doesn’t have to be a hassle if your teamed with an experienced Realtor.
 
Have questions on buying a home? Call Marshall 614-226-3922 or mdrake@remax.net.
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Kassel Real Estate
PO BOX 1014 • Sunbury, OH 43074
Phone: (614) 226-3922 •



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