Archive for Homebuyer Tips

Ready To Buy Your First Home, Here Is Your Quick Checklist

Posted in Homebuyer Tips by Michigan Real Estate Expert on February 12th, 2014

Ready To Buy Your First Home, Here Is Your Quick ChecklistBuying your first home is a major milestone in your life, similar to graduating high school or moving out of your parent’s house.

When you buy a property, you are making a long-term investment decision in your future and potentially taking the first step toward your future financial security.

However, buying a house before you are ready can actually be a negative move that puts a cramp in your plans.

It is important to assess where you are in life, so that you know whether or not it’s the right time to buy a house.

Some people buy their first home at 21, others at 30 and some might continue to rent for the rest of their lives – the decision depends on personal circumstances. But how can you determine for yourself whether you are ready?

You Have All Of  Your Finances In Order

Is your credit score looking healthy? Have you paid off your credit card debt, student loans or personal loans?

If not, it is important to clean up your finances and pay down your debts before you start looking for a home, or you will be adding a mortgage on top of the debt before you are able to handle everything.

You Have Enough Savings For A Down Payment

Just because you can buy a home for as little as 3.5% down payment, doesn’t mean that you should. You will have your dream home, but your mortgage payments will be so high that you won’t have any money left over for repairs or improvements.

Also, you will end up paying thousands of dollars more in interest over the length of the loan. The bigger down payment you can save, creating equity in your home, the better.

You Are Earning Enough To Comfortably Afford The Mortgage Payment

Financial experts recommend that you never take a monthly payment that is more than 25% percent of your take home pay – including taxes and insurance.

Stretching yourself thinner will leave you little room for error and if your income drops for any reason – you will quickly find yourself in hot water.

You Are Happy To Settle In One Place

Could you see yourself settling in this location for the long term, or are you still considering moving elsewhere in the country or living abroad?

Buying a home is a long-term investment, so if you think that you might possibly move somewhere else in the next five years, you might want to think twice about buying a home and rent instead.

These are just a few of the signs that you are ready to purchase your first property. For more information, contact your trusted real estate professional.

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Buying A Home That’s Not For Sale

Posted in Homebuyer Tips by Michigan Real Estate Expert on February 5th, 2014

Buying A Home That’s Not For SaleYou’re ready to purchase a home, but you’ve looked at everything on the market and can’t find the perfect place. You’ve researched the school districts, neighborhoods and nearby amenities, and you know exactly in which area you want to live.

However, anything that comes on the market in that part of town gets snapped up immediately.

It’s time to get creative when it comes to buying a home. Start looking at places that are not currently for sale. You might have driven past your dream home, but you never thought of going the unconventional buying route.

Well, take a look at the tips below to see how you can close on a home without any other buyers knowing.

Look At Previously Listed Homes

Search homes that were on the market, but the owners took them off. Many homeowners let their listing expire and are waiting until the market improves. This is fortunate for you, because you know they are already interested in selling.

Research Online County Records

If you see your perfect home, but you don’t want to just walk up to the door and demand they sell their house, you can find their contact information online. Property records include the owners’ name, address, and, sometimes, their contact information. This will allow you to go through the proper channels of proposing an offer.

Consider A Real Estate Agent

A seller is more likely to take you seriously if a real estate agent brings the offer to them. Agents deal with sellers all the time and will be able to gage if the homeowners are interested.

They’ll also be able to tell you the right price to offer and how you should go about it. You’ll also have piece of mind that all the paperwork that comes with buying a home is completed correctly.

Write A Personal Letter

While all the guidelines say to keep personal feelings out of the home selling process, it’s practically impossible. A home is the place where you raise your children and make memories.

So write the homeowners a heartfelt letter about how you’d like to build a life in their current house. If they think you’ll care for their place as much as they do, they might entertain an offer.

Offer A Fair Price

Many homeowners are ready to upgrade, but hate the idea of getting their current residence ready to sell. They’d have to clean, clear clutter, stage and keep everything looking spotless until they close the deal — which can be quite a hassle.

So, make it convenient. Offer a price that won’t offend and will have them thinking how this could be a stress-free transition.

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