Shopping for a new home in Michigan? Before you dive head-first into homeownership, you must take some important steps.
From finding the perfect neighborhood to getting approved for a mortgage, first time homebuyers will have more to consider than just curb appeal and interior design.
Michigan First Time Homebuyer Tip #1 – Get Pre-approved Before Shopping for a Home
It’s certainly more fun looking for homes than it is to talk finance. This is why many first time buyers will start shopping for homes before they know what they can afford and what they are approved for. Oftentimes, there is quite a bit of disappointment when the buyer finally does apply for the loan. The buyer may learn they were searching for homes in the wrong price range and that home they already fell in love with is too much for them to afford.
Before beginning your home buying journey, talk to a Michigan mortgage lender about getting pre-approved for a loan. This way, you will know exactly what you can afford and what properties can be considered. Also, being pre-approved makes you more of a competitive buyer if multiple people are making offers. Show your pre-approval letter to the seller to let them know you are serious about purchasing the home.
Michigan First Time Homebuyer Tip #2 – Be Sure to Research the Neighborhood
Sometimes is easy to get excited about a specific property and fail to understand the community it belongs to. In addition to researching schools, shopping, crime rates etc. you really should try to spend as much time in the neighborhood as possible.
Try to visit the neighborhood morning, midday and night. Perhaps you will learn that there is a different feeing at night such as suspicious activity that was not apparent during the daytime. If you plan on spending ten years or more in a particular home, it is wise to thoroughly understand your neighborhood before you commit to buying it.
Michigan First Time Homebuyer Tip #3 – Take Advantage of Down Payment Assistance Programs
As a first-time home buyer, you may not have a lot of money saved up for a down payment. Or, your down payment will literally drain your savings account. Many first time buyers have no idea how many down payment assistance or low down payment programs are available to them.
Rural Development loans and VA loans offer full financing with no down payment required. MSHDA loans can provide up to $7,500.00 in down payment assistance.
Then there are loans that do not require the full 20% down payment. FHA loans only require 3.5 % for all buyers and conventional loans only require 3% for Michigan first time home buyers.
Even if you have money saved for your down payment, why not take advantage of these programs and hold on to your savings for future repairs or when other emergencies occur?
Learn More: Down Payment Assistance Programs
Consult with Julie Krumholz for More Michigan First Time Homebuyer Tips
With home buying on the rise, there will be many first time buyers looking for a new home. Finding the perfect home can be exciting yet overwhelming at the same time. Don’t navigate through the process alone. Contact a Michigan mortgage expert such as Julie Krumholz to get pre-approved and to help you understand every step of the home buying process.
Call Julie Krumholz today at: 586-382-5482.