Are you thinking of buying a home, but really do not know much about the home buying process? Buying your first home can be scary, but if you plan ahead you will do just fine! Many young people do not realize that they can afford a home. That is usually one of the biggest concerns for many home buyers. Not only can they afford a home, but afford the type of home they want. Many times first time home buyers are nervous about getting a mortgage and whether they can get approved for a mortgage. Sometimes you need little or no money to buy a home if you are a veteran or can qualify for a rural development loans. There are Government programs for first time homebuyers (FHA) with as little as 3.5% down.
If you are a first time home buyer the key is to plan ahead. You may need to repair your credit, save for a down payment, get more time on a job, or save more for closing costs. As a first time home buyer you need to know what you have to do to get started. You may be one of the "great buyers" and have everything you need to get started right now and not know it! What I mean by a "great buyer" is a buyer that has great credit scores, great job history, and already have the money for closing costs and the down payment.Let's explore the no money down loans first. Yes, sometimes you do not need any money at all to buy a home. We can ask the seller to pay your closing costs. We call that "seller's concessions". There are some good government programs that offer low rates and the 100% loan. 100% financing may be one option for you if you do not have the money for a down payment. To qualify for 100% government financing you either have to be a veteran or buying in an area that qualifies for a rural development loan.
The FHA loan is another great option for home buyers that have some past credit issues, or little down payment money, or have some higher debt ratios. If you do not know what a debt ratio is here is an explanation. A debt ratio is the total amount you make versus how much you owe. How much you owe includes your house mortgage payment, property taxes, and home owners insurance. Your debt ratio is checked by the mortgage underwriter. Sometimes people can get denied because either they don't make enough and have too much debt. Their student loans, or car payments along with their future house payment adds up to too much. So it is always smart to talk to a mortgage lender as soon as you can when you are considering buying a home. You may have to make some adjustments.
Call a mortgage lender to set up an appointment to go over your credit report, and credit scores. You may have imperfect credit, need to reduce debt, or improve your credit scores. The key is to get started. Even though you may have bruised credit, or too much credit they have helped many people improve their credit. Then you will be able to buy a home.
Create Your "Want" and" Wishlist". There is a difference between your want list and wishlist. Make your want list first. Focus on the features you want in a home: 2 bedrooms or 3? 1 bath or 2? Garage or no garage? Knowing what you're looking for will help you focus your search. And it will help your local Michigan County real estate agent too. Think about where and why you want to buy in an area. How far to work? School? Family?
Sign up for an auto email based on your wants. Then read the listings completely. Then if you are pre-approved call the best Michigan real estate agent you can hire. We will get the homes set up so you can see them. When you go out and see homes keep track of what you like and dislike about each home that you visit by printing and using our Home Visits Worksheet. Be sure to share your thoughts about the home to your realtor. The more they know about your likes and dislikes will help them find more homes that fit your criteria. A wish list goes deeper. You may want a pool but it isn't necessary. You may prefer an attached garage, but again not necessary. Those items go on your "wish list"
Also consider the market value of the home, any special circumstances surrounding the sale of the home, how much you can afford to pay for the home, and the condition of the home when determining whether the home is right for you. When you find a Metro Detroit home in your price range and you want to buy it, visit the neighborhood at various times to get a more complete understanding of what happens around the home at different times. Talk with your prospective neighbors about what it's like to live in the area. The neighbors are usually a wealth of information about the home and the neighborhood. Take to drive to your job from the house at the times you drive to and from work. By going back to look at the home more than once - you may discover flaws you hadn't noticed during your first visit.
Another aspect to consider is the financing you will use to purchase the home. For example, the seller may help pay closing costs such as transfer taxes or points on a mortgage. If this is the case, you may be more willing to accept the seller's asking price. Your local Wayne County real estate sales professional (Russ Ravary) can offer some assistance regarding how much you should offer, but the final decision is yours.
I hope these quick home buyer tips help you in your search of your next Metro Detroit home for sale. We can help make your dreams come true.
