Whether you’re a long-time local looking to settle somewhere new or looking forward to moving to Ohio for the first time, understanding how to buy a house in Ohio is an integral part of any relocation. With variations in the home buying process for everyone, such as first time home buyers versus investment properties, it can seem complicated. But don’t worry!
As you trusted Cincinnati, Akron, and Columbus movers, we’re here to help simplify and explain everything there is to know so you can embark on your home buying journey with sheer confidence.
Table of Contents
Understanding Ohio’s Housing Market
Buying a house in Ohio starts with an overall understanding of the real estate market.
While Ohio is still somewhat in a sellers market, things could be shifting! While there are variations in every direction, the median home price in Ohio stands at an affordable $241,200, considerably less than the national median sale price of $430,000.
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If you’re house hunting now, Ohio has varying living environments to suit any lifestyle:
- Columbus: With its thriving arts culture, lively downtown area, and good colleges, Columbus is perpetually ranked as a top city for both young professionals and families.
- Cincinnati: With its picturesque historic districts and vibrant economic development, Cincinnati boasts affordability with lively urban living and healthy job markets.
- Cleveland, located along Lake Erie, features cultural institutions, top-flight medical facilities, and renewed neighborhoods and is appealing to both retirees and young professionals.
- Dayton is known for its aviation and aerospace history and offers affordable housing opportunities close to higher education and technologically driven job markets
- Suburban and rural areas: For those seeking quieter surroundings, Ohio’s suburbs and rural communities, such as Medina, Hudson, and Granville, offer spacious properties, top-rated schools, and a slower-paced lifestyle ideal for families or retirees.
Meaning you’re bound to find a place that feels like home!
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How Much Does It Cost to Buy a Home in Ohio?
When buying a home in Ohio, the median home price is approximately $241,200, significantly lower than the national median. However, actual costs can vary widely depending on the city and neighborhood.
In cities like Columbus and Cincinnati, average home prices tend to hover between $250,000 to $350,000. Cleveland and Dayton are a bit more affordable, with homes often selling around $200,000 to $300,000.
Buyers interested in suburban communities such as Medina or Hudson might find average prices slightly higher, typically ranging from $350,000 to $500,000, due to larger homes and desirable school districts.
Beyond the home price itself, you should also budget for additional expenses such as Realtor fees, which typically average around 5-6% of the home’s purchase price (usually paid by the seller but can influence pricing negotiations). Consider potential renovation or improvement costs, especially if you’re buying an older home or planning upgrades.
Other financial considerations include closing costs (approximately 2-5% of the purchase price and including things such as the appraisal fee), moving expenses, and initial home maintenance or furnishings.
First Time Homebuyer Programs in Ohio
As part of understanding how to buy a house in Ohio, first-time buyers will hugely benefit from Ohio’s first-time home buyer programs. The Ohio Housing Finance Agency (OHFA) provides several opportunities to help first-time buyers navigate financial barriers, making the process both manageable and exciting.
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Your Choice! Down Payment Assistance
This program generously provides 2.5% or 5% of the home’s purchase price to cover your down payment and closing costs. Remarkably, if you stay in your new home for seven years, you won’t have to repay a dime, making this one of the most helpful down payment assistance programs there is for those seeking affordable loan options.
Grants for Grads Program
Recent graduates can take advantage of the “Grants for Grads” program, which rewards educational achievements with reduced mortgage interest rates and forgivable down payment assistance.
Ohio Heroes Program
Ohio salutes its heroes – military personnel, veterans, health providers, educators, and emergency responders – with its unique “Ohio Heroes” program, providing low-cost loan financing and added financial assistance.
Mortgage Tax Credit
The Mortgage Tax Credit can greatly lower the cost by providing eligible purchasers with a significant annual federal tax credit, generally up to $2,000. This credit is available to qualifying homebuyers through the Ohio Housing Finance Agency’s (OHFA) Mortgage Tax Credit program.
Such thoughtful programs exemplify just how much the state cares about making buying a home in Ohio accessible to all.
Types of Mortgages Available in Ohio
Understanding how to buy a house in Ohio includes exploring various mortgage loan options, including government-backed loans. Conventional loans typically offer competitive rates but require higher credit scores. Federal Housing Administration (FHA) loans are ideal for eligible homebuyers needing lower down payments. VA loans, available to eligible veterans, feature no down payment and favorable terms.
USDA loans provide affordable financing for rural Ohio properties. Consider your financial situation and goals carefully when buying a house in Ohio, as each mortgage type has unique advantages and considerations.
You may also consult with a mortgage broker who can offer personalized assistance and help you navigate various home loan options available in Ohio.
Understanding Private Mortgage Insurance (PMI)
Private Mortgage Insurance (PMI) is typically required if your down payment is less than 20% of the home’s purchase price. PMI protects lenders but adds a monthly cost for buyers, which can be removed once sufficient equity is built in your home.
Step-By-Step: How to Buy a House in Ohio
Follow these steps and you’re well on your way to buying a house in Ohio!
Step #1 – Determine Your Budget
Before you begin buying a home in Ohio, understanding your finances is essential. Take a thoughtful look at your monthly income, expenses, and savings to determine how much you can comfortably invest in your new home. Ohio homebuyers often overlook hidden costs such as property taxes, homeowner’s insurance, and utilities.
Utilize local budgeting tools or speak with a financial advisor who understands Ohio’s real estate market. Knowing your budget upfront and exactly what your monthly mortgage payments will look like makes the entire home-buying process far less stressful, transforming uncertainty into confidence as you explore possibilities.
When it comes to buying a home in Ohio, you’ll typically need a minimum credit score of 620, so start by ensuring this criteria is met.
Step #2 – Get Pre-Approved for a Mortgage
A crucial step when figuring out how to buy a house in Ohio is securing mortgage pre-approval. A pre-approval demonstrates to sellers that you’re a serious, ready-to-go buyer, giving you a competitive edge. Ohio has many trusted local mortgage lenders, so take time to compare rates, loan terms, and customer service experiences. Keep in mind mortgage companies will typically check things like your credit score, debt to income ratio, employment history, etc., before issuing a loan.
Choosing an Ohio-based lender not only helps streamline your purchasing process but ensures personalized guidance from someone familiar with local markets. This proactive step helps clarify your financial boundaries and sets realistic expectations as you move forward.
Step #3 – Find the Perfect Real Estate Agent
Partnering with not just a good real estate agent but an exceptional one will make buying a home in Ohio enjoyable rather than overwhelming.
Find agents who thoroughly know Ohio’s neighborhoods and real estate markets and who truly care about matching you with your dream home. Find someone with experience where you’d love to be, and never be afraid to request references or recommendations. The proper agent becomes your champion, counselor, and navigator when buying a house in Ohio, easing your way and making your choices simpler.
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Step #4 – Start Looking at Homes
Now it is time for the best part – home touring! Get the best out of house hunting in Ohio by viewing homes at open houses and private tours with a sharp mind. Be particularly focused on aspects peculiar to homes in Ohio, like basement condition, insulation, and heaters because of weather seasonality in the region.
Start house hunting during spring or summer to explore the most variety, giving you a broader perspective on what’s available. Approach every visit as a chance to discover your next dream home, and soon you’ll know exactly how to buy a house in Ohio that suits your lifestyle perfectly.
Step #5 – Make an Offer
When you’ve found the ideal home, it’s time to make an offer. In Ohio’s competitive market, smart negotiation is key. Work closely with your agent to craft an attractive yet fair offer based on local market conditions. Protect yourself with contingencies, such as financing, appraisal, and home inspection clauses.
Once your offer is accepted, you’ll typically need to provide earnest money, such as a good-faith deposit, showing your genuine commitment to buying a house in Ohio. This deposit is usually credited toward your down payment or closing costs at settlement.
These safeguards help ensure you’re making a wise investment. Remember, negotiating is more than numbers – it’s about finding terms that both you and the seller can happily accept, making the dream of buying a home in Ohio a reality.
Step #6 – Get a Home Inspection
Getting your potential home inspected is essential, as it will alert you to possible issues such as radon, basement moisture, roofing, ceiling tiles, or foundation problems common in local Ohio homes. Contact a certified inspector to receive this assessment and help you avoid any unwanted surprises after closing day.
If you do find something significant, use this to negotiate better purchase terms or repairs. This way, you can rest easy knowing that your new house is safe, sound, and ready for your family.
Step #7 – Property Taxes & Homeowners Insurance in Ohio
In Ohio, property taxes are assessed based on the county’s appraised value of your home, typically ranging from 1.5% to 2.5% annually. Homeowners insurance rates vary, but Ohio’s average is about $1,000 per year. To save money, explore property tax exemptions or discounts and start shopping around for competitive insurance rates.
Step #8 – Close and Move In!
Finally, it’s time to close the deal and celebrate! Closing in Ohio involves finalizing your mortgage paperwork, a title search, securing title insurance, and officially transferring ownership. With documents signed and keys in hand, you’re ready to move. For an effortless transition, partner with trusted local movers like Krupp Moving & Storage.
Our professional Columbus movers take pride in ensuring your move-in day is joyful and hassle-free. As you step into your new home, you’ll appreciate that learning how to buy a house in Ohio has truly paid off.
Common Mistakes to Avoid When Buying a Home in Ohio
Buying a home in Ohio can be complicated, but by avoiding typical pitfalls, you can make it smoother. First, do not omit mortgage pre-approval; you would be at a disadvantage otherwise by not knowing exactly what you can afford. Second, never underestimate the value of proper home inspection, as it can save you valuable future expenditures.
Third, do not make significant financial adjustments prior to closing, as this can harm your loan approval. Lastly, always use credible real estate agents and loan officials well-versed in Ohio’s distinct market dynamics, and be sure to change your address in Ohio after you’ve purchased the home.
Educating yourself and staying vigilant ensures buying a house in Ohio is rewarding and successful.
Call Us After Buying a House in Ohio to Help You Move!
Now that you know how to buy a house in Ohio, make your move the best it can be and call Krupp Moving & Storage at 614-892-9046 today! Our variety of moving services ensures that no matter where your new home is located, you’ll settle in with complete ease and peace of mind.
