The Ohio Dream: 5 Ways To Be A Competitive Home Buyer
- The Jade Zivko Team
- Mar 13, 2024
- 2 min read
Updated: Mar 14, 2024
If you've ever dreamed of owning your own home in Ohio, you're in the right place. Buying a house is a big step, but with the right financial preparation, it's achievable for anyone. In this blog, we'll break down five essential tips to help you get ready to make that dream a reality. Whether you're new to the world of homebuying or just looking for some helpful advice, we've got you covered. Let's dive in!
Set a Budget and Save for a Down Payment:
Determine your target home price based on your budget. Let's say you aim for a home priced at $200,000.
Aim to save for a down payment. If you're targeting a conventional loan and aiming for a 20% down payment, that would be $40,000. However, many lenders accept down payments as low as 3%, which would be $6,000 for the same home price.
Improve Your Credit Score:
Check your credit report for free from each of the three major credit bureaus (Equifax, Experian, and TransUnion) at AnnualCreditReport.com.
Aim for a credit score of at least 620 for conventional loans. If your score is lower, work on improving it by paying bills on time, reducing debts, and addressing any errors on your credit report.
Factor in Additional Costs:
Closing costs typically range from 2% to 5% of the home's purchase price. For a $200,000 home, this could be between $4,000 and $10,000.
Property taxes in Ohio vary by county but are typically around 1.5% of the home's assessed value annually. For a $200,000 home, this would be around $3,000 per year, or $250 per month.
Homeowners insurance costs vary but can range from $800 to $2,000 per year, depending on factors like the home's value and location.
Maintenance costs can vary greatly but it's recommended to budget around 1% of the home's value annually for maintenance and repairs. For a $200,000 home, this would be $2,000 per year, or approximately $167 per month.
Get Pre-Approved for a Mortgage:
Get pre-approved for a mortgage to understand how much you can borrow. Based on your income, debts, and credit score, a lender might pre-approve you for a loan amount of $180,000, for example.
Research Loan Options and Programs:
Explore various loan options and programs to find the best fit for your situation. For example, if you're a first-time homebuyer in Ohio, you might qualify for down payment assistance through programs like OHFA, which could provide up to 5% of the home's purchase price as a down payment assistance grant.
Buying a home in Ohio is an exciting journey that requires careful financial planning. By following the five tips outlined in this blog, you can prepare yourself for the adventure ahead and increase your chances of success.
Remember, having a trusted realtor by your side can make the process much smoother. That's where the Jade Zivko Team comes in.
With their experience and expertise, they'll guide you through every step of the homebuying process, ensuring you find the perfect home for your needs.
Don't hesitate to reach out to the Jade Zivko Team and take the first step towards making your Ohio homeownership dreams a reality!
Jade Kim Zivko
216-338-5918
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