Buy a New Home the Easy Way

Buying a home can be a challenging task. If it’s your first time, it can be downright intimidating. Eiting Real Estate simplifies the process by taking some basic information about you as a homebuyer and what you’re looking for in a new home. We then provide you with customized listings tailored to your needs, desires, and budget, sending them straight to your email. If you see something you like, simply contact us and we’ll set up a showing. It’s that simple.

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First Time Home Buyer FAQ’s

If this is your first time buying a home, you probably have a lot of questions. Below you’ll find the most common home buying questions and answers. Simply click on a question to view the answer.

Why should I work with a real estate agent?
Buying a home will most likely be the largest purchase you will make and you deserve to be represented throughout the transaction. We will negotiate hard to help you achieve the best terms and will do our best to manage the transaction, keeping your best interest in mind, through the day of closing.

 

Who pays the real estate agent’s commission?
In most cases, the listing broker agrees to cooperate with and pay he buyer’s agent a commission. That means you have full representation at no out-of-pocket expense to you and it does not inflate the cost of the home. Research has shown that consumers who work with a buyer’s agent receive a better value than those who do not.

 

Is there a difference between an agent and a REALTOR®?
Yes, a REALTOR® is a real estate agent who holds membership in the national, state and local real estate boards. A REALTOR® is held to a higher standard of ethics and a strict code of conduct.

 

How much house can I afford?
When evaluating how much you can afford, lenders usually use two rules of thumb. 1. Your maximum monthly mortgage payment should not exceed 28% of your gross (pre-tax) income. 2. Your maximum debt load, including your mortgage payment, should not exceed 30% of your gross income.

 

What’s the difference between being pre-qualified and pre-approved for a loan?
Pre-qualification is an informal determination by a lender stating how much mortgage you can afford. Pre-approval is a guarantee in writing by a lender to grant you a loan up to a specified amount.

 

What’s the advantage of being pre-approved?
You won’t waste time looking at homes that are out of your price range. When you find a house that you like, a seller will find your offer more attractive if you are pre-approved for a mortgage. Finally, the length of time before closing can be shorter if you’ve completed the loan process prior to signing a contract on a property.

 

Is it better to rent or buy?

The Case for Renting:

  • Renters don’t have to pay homeowner’s insurance or property taxes.
  • Renters are not responsible for upkeep or repair.
  • Renters, in most cases, don’t have to mow the grass or shovel the snow.

The Case for Buying:

  • Homeowners build equity.
  • Homeowners get something back on their investment.Homeowners can make changes and upgrades to the property.

Questions to Ask Yourself:

  • How long will we be living here? The longer you plan to stay, the more sense it makes to buy.
  • Is my job secure enough to support homeownership? Do you anticipate a change?
  • Is renting the best use of my money? With low Interest rates, is it cheaper to buy?
  • What’s stopping me from owning? Poor credit, lack of down-payment money?


What extra costs should we consider?

Whether you are buying your first home or trading up to a larger one, there are many costs that you must figure into your calculation of affordability. Some of these costs are one-time fixed payments, while others represent an ongoing monthly of yearly commitment.

  1. Appraisal Fee – Your lender will require an appraisal of the property to verify value. This is the responsibility of the buyer and can range from $250-$500.
  2. Property Taxes – Your lender may want to include property taxes in your monthly payment. At closing, the lender will establish an escrow account of 3-6 months of prepaid property taxes.
  3. Property Insurance – The lender will require proof that you have paid for a full year of homeowner’s insurance prior to closing the loan.
  4. Survey Fee – The lender may require an updated property survey. Cost of a survey varies depending on size and location of the property.
  5. Legal Fees – The lender will require a title search by an attorney to insure that there are no defects on the title and that the property is transferable.
  6. Mortgage Insurance – Depending on your equity, some mortgages require mortgage loan insurance. This is a percentage of the total amount of the mortgage, and is an addition to the principle and interest payment.
  7. Lender Fee – your lender will charge a fee to organize the financing and close the loan. This can include items such as, origination fee, credit report, flood certification, recording fees, etc.

Remember, buying a home is a major milestone. Whether it’s your first, second or tenth home, there are many important details to address during the process. All lenders are required to give you a “Good Faith Estimate” which spells out all the costs associated with your mortgage. The lending process can seem complicated and confusing, so ask lots of questions. The last thing you need are unbudgeted financial obligations cropping up hours before you take possession of your new home.

 

What are the current mortgage rates?

 

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Helpful Information About the Area

New Bremen
www.newbremen.com

Minster
www.minsteroh.com

New Knoxville
www.newknoxville.com

St. Marys
www.cityofstmarys.net

Wapakoneta
www.wapakoneta.net

Celina
www.ci.celina.oh.us

Sidney
www.sidneyoh.com

Anna
www.villageofanna.com

Ft. Loramie
www.ftloramie.com

Southwestern Auglaize County
Chamber of Commerce
www.auglaize.org

 

Additional Local Resources
School Information
Ohio Department of Education
www.ode.state.oh.us

Local Weather
Weather.com
www.weather.com/weather/local/45869

Demographics
U.S. Census
http://quickfacts.census.gov/qfd/index.html