How to Buy a House in Ohio: A Homebuyer’s Guide
Updated: April 5, 2024
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The average property value in Ohio has increased by about 11.8% in the past year, reaching approximately $216,875. This is substantially less expensive than the $357,589 average home value nationwide.
Although price and finding the cheapest places to buy a house in Ohio are major considerations when buying a property, there are other aspects to take into account, such as the mortgage terms. You will also want to consider the cost of living in the locations you are considering.
Long-term advantages can come from knowing how homebuying works. For Ohio homeowners, MoneyGeek's homebuyers guide covers the essentials, including filing an application, calculating mortgage rates, closing the deal and avoiding significant debt.
Choose an Ideal Location
When buying a home, location is one of the main factors purchasers look at. Where you choose to live has a big impact on how much your house and mortgage will cost.
Along with choosing the best place to buy a house in Ohio, you should also consider the area's cost of living, ease of access to facilities, local culture and other readily available resources.
Calculate Mortgage Rates
There are many options to choose from when getting a mortgage. MoneyGeek recommends taking a close look at some aspects that have a big impact on your mortgage cost since you might be able to better your rates if you understand how mortgage rates are determined.
Take the time to evaluate your credit score, income, interest rates, loan type, terms and loan amount before making a final decision on a lender.
Prepare Down Payment Requirements
When buying a home in Ohio, you’ll generally have to provide a down payment. This is a percentage of the value of the home and can be as much as 20%.
Different loan types have different down payment requirements. Lenders may also let you put down a smaller down payment if you purchase insurance.
Get Pre-Approved for a Mortgage
After choosing an Ohio lender, the next important step is to get a mortgage pre-approval. You can discuss your budget and the lender's requirements once you get pre-approval.
Pre-approval is different from prequalification. When you prequalify, your lender just provides an estimated loan amount. A hard credit check is not necessary for prequalification, but it usually is for pre-approval.
Conduct a Home Inspection
As the buyer of the house, you will usually foot the bill for a home inspection. This is a crucial stage in the purchasing process.
You can learn more about the current condition of the home and whether or not repairs are necessary by getting a qualified third-party home inspection.
Close Your Mortgage Loan
After carefully reviewing the loan terms, you can now close your mortgage. Be mindful of closing costs when deciding where is the best place to buy a house in Ohio.
In order to cover the expenses of your credit report, appraisal and document preparation, you must pay the lender a fee for closing costs.
Ohio Homebuying Details
If you're buying a property in Ohio, do your research on the area, consider your mortgage selections and check into lenders who can help you achieve your objectives. There may also be state-specific tasks to complete when buying a home.
Don't be afraid to contact your lender or a real estate professional to get ready to buy a home in Ohio. Additionally, you can qualify for homeowner assistance programs in Ohio that could help you with your new home purchase.
When it comes to closing costs, you can try to negotiate to get the seller to pay the cost of real estate transfer taxes, which make up a major portion of these charges.
If you just graduated from college, you're in luck because of its Grants for Grads program. The Ohio Housing Finance Agency can cover up to 5% of your closing fees and down payment requirements.
As a homeowner in Ohio, be sure to budget for the taxes you will have to pay. Rates vary from county to county.
Frequently Asked Questions About Buying a Home in Ohio
Buying a home in Ohio can be confusing. To assist you in beginning your property search, MoneyGeek has provided answers to some frequently asked questions.
Purchasing a home is a major life event. You should look into your preferences for a property as well as where you want to reside and how much it would cost to buy a house in Ohio. Ask yourself:
- Where do I want to live?
- How much can I afford to pay for my mortgage each month?
- What resources and amenities do I want access to in my neighborhood?
- What loans do I qualify for?
Ohio's typical home prices are thought to be low when compared to national averages, which attracts many potential buyers. If you are confident in your ability to make a major financial commitment, moving forward with buying a home in Ohio could be a wise decision.
Ohio's average home value increased by roughly 11.8% over the previous year. While this indicates it could be a good decision to buy a home in Ohio, keep in mind the market can change at any moment.
It depends on the home you buy and the location in Ohio that you choose to live in. The more expensive the home you purchase is, the higher your income will need to be to cover the cost of your mortgage.
There is no single property tax rate in Ohio. The rate changes from county to county.
Neighborhoods in Ohio with lower housing costs include Beavercreek, Bexley, Gahanna, Heath and Lancaster.
sources
- First Ohio Home Finance, Inc. "Mortgage Checklist." Accessed October 24, 2022.
- Tax-Rates.org. "Ohio Property Taxes 2022." Accessed May 21, 2023.
- The Ohio Housing Finance Agency. "Down Payment Assistance." Accessed October 24, 2022.
- The Ohio Housing Finance Agency. "Grants for Grads." Accessed October 24, 2022.
- UpNest. "10 Cheapest Places to Live in Ohio: A Guide." Accessed October 24, 2022.
- USDA. "Single Family Direct Home Loans in Ohio." Accessed November 29, 2022.
- Zillow. "Compare Today’s Mortgage Rates in Ohio." Accessed October 29, 2022.
- Zillow. "Ohio Home Values." Accessed November 29, 2022.
- Zillow. "United States Home Values." Accessed November 29, 2022.