Lee Morof's Real Estate Blog

Looking to buy a new house? Do you have a specified budget in place? Are you going to need to take out a loan? In such a tumultuous Troy Michigan real estate market, there are many frustrating financial hurdles that you need to jump before you can purchase your home. However, with a pre-approved loan you could reduce stress and move in quicker.

Troy Michigan real estate buyers have an advantage if they are pre-approved for a home loan. A pre-approved loan is when a bank provides you with an amount they would be willing to lend you for a home and a period of time for which this offer is good. They determine this amount based on several criteria that you must provide and prove, such as your current income, bank statements, income tax returns and credit history. 

Perks from pre-approval

• Know what you can afford –Using a mortgage calculator, you can see an estimate of the monthly mortgage payment to help you determine if it is within your budget.  By obtaining a pre-approved loan, you’ll know exactly how much money you can spend on a house.
• Gain credibility – Troy Michigan real estate agents and sellers take you more seriously if they have proof that you can come up with the money to purchase the property.
• Save time – When you know exactly how much you can spend, you won’t waste your time looking at houses out of your price range. This allows you to spend more time scrutinizing the houses you can afford.
• Close quicker – With a pre-approved loan, you’ve already completed part of the time consuming work toward getting your mortgage. Without pre-approval, you might endure heartache if you find your dream home, but can’t find the funds.

If you’re searching for Troy Michigan real estate without a pre-approved loan, stop wasting time. Analyze your income, talk with a lender and get pre-approved before beginning the house hunt.

Need a referral to a reputable mortgage provider in Southeast Michigan?  Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

Lee Morof
Associate Broker/Attorney  
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640

You may have heard of points when looking for Troy Michigan real estate.  Maybe your loan officer told you that you can trade points for a better interest rate.  That sounds good, but just what are points? Let me give you a better idea of just what points are and how they work.

What Are Points?
Points, more specifically discount points, are a percentage of the total loan amount for the house that is pre-paid to the lender.  Each point is worth one percent.  Your lender may offer a lower interest rate for your mortgage loan if you buy discount points.

What do Discount Points Cost?
The cost of each point is equal to one percent of the loan amount. For instance, for a $200,000 loan one discount point equals $2,000.

For example, you are trying to buy Troy Michigan real estate worth $200,000.  The lender may tell you that if you buy 2 points at $2,000 each, you’ll get an interest rate two percent better. 

Should I Buy Discount Points?
Some lenders will allow you to purchase discount points to be approved for the loan.  By buying a discount point, you’ll get a lower interest rate.  This can reduce your monthly payments, which could put your credit to debt ratio in the right range.
 
You have to know how long you’ll live in the house or you could lose money purchasing the discount points.  If you sell or refinance before you reach the break even point, you’ll wind up with a net loss.  Use an online mortgage point calculator to help you determine if buying discount points is a money saving proposition for you.

Points may be a good way for you to save money on your Troy Michigan real estate if you plan to stay in your home for a long time.  Want one more benefit?  Discount points are tax deductible in the year in which they’re paid.

Need help understanding mortgage and real estate terms?  Subscribe to my blog now.  You’ll get easy to understand information like this sent straight to your email a couple of times a week.  And it’s free!

Are you ready to sell your southeast Michigan real estate?  I’d like to show you my 30-Day Marketing Plan that sells 85% of homes listed with me.

If you’re a buyer there are lots of good deals on Troy Michigan real estate and interest rates are low.  Give me a call at 248-514-2640 or contact me now! 

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640

You’ve finally decided you want to buy a piece of Troy Michigan real estate.  What do you do now?  Here are a few tips to get the best deal for your money:

Check Out Your Credit
The first thing you’ll want to do is order a copy of your credit report from the three major credit bureaus:  Experian, TransUnion, and Equifax.  Look for inaccuracies in:

• Name
• Address
• Creditors
• Late Payments
• Delinquencies

After you’ve reviewed your credit report and know your credit score, you’re ready to make improvements to your report.  You can send a written “Notice of Correction” to the credit bureaus.  It can be up to 200 words.  If needed, you can explain why you fell behind on a particular debt, and every time a lender accesses the report, they’ll see your explanation.

It can take several months to for your credit score to go up.  However, it’s well worth the effort to get a better interest rate.  It can save you thousands when you’re ready to buy Troy Michigan real estate.

What’s Next?
Before you start looking at properties, it’s a good idea to get a pre-approval letter from a lender.  The lender will take into consideration your income and credit history.  Then they’ll determine what loan amount you can be approved for.

Most pre-approval letters list the maximum amount that you are approved for, not necessarily the amount you can afford.  Look carefully at your budget so that you don’t get too excited about the number and get into more house than you can afford.
 
A pre-approval letter will give you and your agent an idea of what houses to look at, and no time is wasted seeing properties that you can’t afford.  Prospective sellers may also give your bid more weight if you have a pre-approval letter.

Are you a first-time buyer?  You have just made a fabulous decision for your future.  There are tons of great buys in the Troy Michigan real estate market. I’m a real estate specialist in this community and would love to help you buy the home of your dreams.  Call me now at 248-514-2640 or drop me an email at info@NorthWoodwardHomes.com today!

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com  
Call:  248-514-2640