Brian Moran outlines the 5 key steps to home ownership: 1) Get pre-approved for a mortgage, 2) Hire a REALTOR® like himself to assist with the process, 3) Hire a home inspector to inspect the prospective home, 4) Make a formal mortgage application, and 5) Get ready for the closing. He provides details on each step, emphasizing the importance of getting pre-approved, hiring a knowledgeable REALTOR®, and being prepared for the closing.

1. Buying YOUR New Home
Brian Moran, REALTOR®
Coldwell Banker
Schmidt Family of Companies
30400 Detroit Road #100
Westlake, Ohio 44145
(440) 668-1288
brian@brianmoranjr.com
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2. Steps to Home Ownership
1. Get Pre-Approved
2. Hire a REALTOR® (ME!)
3. Hire a Home Inspector
4. Make a Formal Application
5. Get Ready to Close
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3. Step 1: Get Pre-Approved
• The first step when buying a home is to get
pre-approved for a mortgage!
• The terms pre-approval and pre-qualification
are OFTEN misunderstood
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4. Step 1: Get Pre-Approved
• A pre-qualification is usually an approximation of the price
for which a borrower might qualify. More often than not,
information is exchanged verbally regarding debt, income
and assets. A credit report is usually not pulled.
• A pre-approval is more powerful: a credit report is pulled
(ideally from all three credit bureaus); income,
employment and assets are disclosed and documentation
to support the income, employment and assets is provided.
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5. Step 1: Get Pre-Approved
• General Rules of Thumb:
– You can afford a home 3x your
annual income
– Taxes: 31% of your income goes
towards taxes
– Total Debts: 40% goes to pay debts
• Including mortgage payment, car loans,
student loans
– Expenses: 29% goes towards
everything else
• Food, clothing, entertainment,
vacations, etc.
Taxes,
31%
Total
Debt,
40%
Expenses
, 29%
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6. Step 2: Hire a REALTOR®
• Why Hire a REALTOR®?
– They have Education & Experience
– Knowledgeable about the area
– Can provide Market Condition Information
– Negotiation Skills
– Handling of Paperwork
– Answers Questions
– Establish a Relationship for Future Business
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7. Step 2: Hire a REALTOR®
• A REALTOR® will assist you with the following functions:
– Finding a mortgage lender
– Getting pre-approved
– Establishing needs, wants and goals for your new home
• Wants
– In-Ground Pool
– 3 Acres
– Marble Tile in foyer
– Stainless Steel Appliances
• Needs
– 3 bedrooms
– 2 Bathrooms
– Garage
– Good School District
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8. Step 2: Hire a REALTOR®
• A REALTOR® will assist you with the following functions:
– Looking at homes
– Researching the area and amenities for the homes you like
– Submitting a purchase agreement
– Submitting counteroffer(s)
– Setting up inspection (home and other inspections as needed)
– Submitting an inspection response to the seller(s)
– If necessary, renegotiating details in the contract as a response
to the inspection
– Getting documentation to the lender and sign lender’s
disclosures
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9. Step 2: Hire a REALTOR®
• A REALTOR® will assist you with the following functions:
– Setting up homeowner’s insurance
– Receiving final approval for the loan
– Arranging closing with title company, lender, buyers, sellers and
agents
– Reviewing title work and survey
– Getting loan documents to title company
– Preparation of closing statement by title company
– Obtaining final closing numbers
– Contacting your bank to arrange for the money needed for
closing
– Signing documents
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10. Step 3: Hire a Home Inspector
• After you have an accepted offer on your prospective home, in
most cases, the next step is to get the home inspected by a
professional inspector. You want to find a person who is qualified
and licensed to inspecting homes, so that you end up with a
thorough report detailing the condition of your new home.
– One source to use when looking for a licensed home inspector is the
National Association of Home Inspectors Inc. (NAHI).
• The NAHI website contains important and helpful information about the home
inspection process
• Visit NAHI (www.nahi.org) to locate an inspector in your area
– There are other ways to find a licensed inspector:
• Obtain a referral from your REALTOR®
• Obtain a referral from a friend, family member or co-worker
• Obtain a referral from your Mortgage Advisor
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11. Step 5: Get Ready to Close
• Congratulations! You have successfully made it through the
initial stages of the home buying process.
– Your home inspection was satisfactory
– Your appraisal supports the price you agreed to pay for the home
– Your title work is complete
– You have your homeowner's insurance policy declaration page and
invoice for your first year premium
– You have clear final loan approval
– Your closing has been set
– You know the time, date and location for the title company for your
closing
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12. Step 5: Get Ready to Close
• Your lender and/or REALTOR® will provide you with the
amount of money needed for closing
• You will be advised to either obtain a cashier’s or certified
check for the amount of money needed to the title company
• Your lender and/or REALTOR® will tell you the location of your
closing and provide you with directions
• You will need to bring a current driver’s license with you to
closing
• You will sign your name on multiple documents
• The closer will make copies of the documents
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13. Step 5: Get Ready to Close
• Before closing, buyers typically have a final
opportunity to walk through the property to assure
that the nothing has changed since the purchase
agreement was signed.
• After closing, the buyer receives the keys and the
seller receives payment for the home.
• Deeds, loan papers and other documents are
prepared, signed and filed with local property record
offices.
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14. Congrats! You are now
a Home Owner!
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