Here is your 5-step plan for becoming a home buyer in this crazy market!
Get a comprehensive picture of your finances. Sit down with pen & paper and go over your current income vs. expenses. After subtracting any expenses that will go away when you move to a new house, determine how much you would be comfortable spending per month for a new mortgage & housing expenses. Keep in mind things like utilities which will go up or down depending on where you move to. Are you thinking about condos? You should budget $200-$300/Month for an association fee, but may also get the added value of not having a water bill!
Evaluate your credit. Most loan programs require a 620-640 minimum score. If you think your credit might need some repair, don’t attempt yourself! Consumers often make credit decisions that end up hurting more then helping, such as closing credit cards, in certain situations this could (temporarily) lower your credit score for a few months. If your goal is to get your credit into a home buying position, call a lender. Their first step is running your credit report, and from there, if your score isn’t in line with current requirements they will give you advice on what steps to take and when to maximize your credit potential!
Get pre-approved. One the money and credit are figured out, get your pre-approval letter ready! In this fast paced market, homes sell very quickly, your realtor will want to have this letter on hand and ready to go should the right house come along. Tell your lender what you’d like to pay per month for principal, interest, taxes, and insurance. They will tell you what price range to target, as well as what loan type is best for you.
Hire a Buyers Agent. Don’t just browse the web calling the first agent you see. You need someone that will represent YOU and what you are looking for. Lucky for you I happen to know a great one; Check out my home buyers page http://www.movewithmargo.com/buying-a-home-in-michigan/
Make an Offer. Your agent will advise you on market conditions, comparables, and what the estimate value of the house you’re interested in is by using our MLS database to research the area solds & finding those most similar to the one you would like to write an offer on. In a sellers market, you will find that most homes go at or near their asking price if not even over. And many end up in multiple offer bidding wars. For this reason, making a “low ball” offer in a sellers market may cost you the house. In a buyers market, the ball is in your court, and you have a little more room to wiggle.
Phew… That was a lot to take in huh? Once you digest that, feel free to email me with any questions about the buying process, and head over to the home buyers portal to get started! Already pre-approved? Hop right onto my Dream Home Finder and lets get you set up with a property search!!
Real Estate One
$10,000,000 Sold in 2013
6960 Orchard Lake #150 West Bloomfield, MI 48322 | 248-419-3133 | 1-248-419-0930 fax
2014 Hour Magazine Real Estate ALL STAR – Presidents Council of Excellence
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