Tag: real estate agents

Once you have the basics covered the next step in purchasing a home is to determine your exact financial situation.  At this point you have gone through your wants and needs in a home.  You have also gotten a basic foundation established of how much you have for a down payment as well as home much you want to spend each month as far as a mortgage payment.  This is the point you need to get down and dirty with your finances.  This is the point in which you retain a realtor that is willing to help you get what you want and a mortgage lender that will address how much you can afford.

To establish a foundation with your finances you must first start by getting a detailed copy of your credit report. The hope is that the report is above 720 if it isn’t you need to work to correct issues that with errors in reporting as well meeting with a financial advisor that can help you increase the rating.  Some tips that may come from meeting with an advisor could be paying down your credit cards or increasing the amount of money you earn.

Getting your financial house in order involves saving for a larger down payment.  A ten percent down payment is standard however some lenders are more apt to provide a lower interest rate to buyers who have a larger down payment. Consider putting twenty percent down to decrease your mortgage interest rate.  When thinking about a larger down payment take into account that you will have closing costs that creep up, expenses for moving as well as the surprises that aren’t accounted for during the inspection process.

Find a mortgage provider that you like once your credit score is in order and get pre-approved.  This will give you a limit on what you can spend on a home.  This is the upper limit on what you can afford.  Most home buyers should seek to find a home for at least twenty percent less than what they are pre-approved for.  Otherwise you are placing yourself in a tight position when it comes to the amount of your monthly mortgage payment.

You should also discuss with your mortgage provider the process of actually getting a loan as well as the different options in mortgage loans available to you.  Key factors involved in determining what loan type is right for you are the following: the required down payment, the interest rate, the costs and fees involved in closing the loan and secondary requirements from the actual lender.  Secondary requirements can include flood insurance, private road agreements, self employment documentation and such. This secondary information is all necessary documentation outside of the cookie cutter information needed for most mortgages.

Different types of mortgages available from lenders can include conventional, adjustable rate, FHA, VA, assumable, balloon and private mortgage insurance.  These are a variety of mortgages to look into and to understand before moving forward with any one type of mortgage.  The process of buying a home requires a whole lot of work before looking for a home can even begin. A reputable realtor will help you with this entire process even before showing you a single home and a mortgage lender will help explain anything and everything you need to know before supplying you with the right loan for your need.

Lake and Land Real Estate is Livingston County’s premiere realtor out of Pinckney, Michigan serving homes that provide a recreational lifestyle including golf courses, lakes and the Huron river chain of lakes, throughout Hamburg, Pinckney and Howell.  More information can be found at http://www.lakelandmi.com/buyers-resources.php

The purchase of a home is both exhilarating and challenging.  Owning a home comes with an assortment of benefits both financially as well as personally.  The benefits financially range from building equity to tax deductable interest.  Personally the benefits can range from the satisfaction that comes from ownership as well as the stability that it gives you. To give yourself the financial and personal benefits of owning a home you need to get started; below are some tips on finding the perfect home for your needs.

First things first you will need to get your finances in order.  You need to know what you currently have, what you will have coming in and what you will have in the future. This will vary from person to person.  Some people will be working with equity that has built up in their homes, others will work from their savings alone and some will work in combination of resources to obtain a reasonable down payment.

Once you have established a down payment you have a starting point to where you should be when looking for a home to purchase.  The rule is twenty percent down however mortgage lenders have recently become more lenient with the requirements of what is needed to get a home loan.

A long with what you can afford you need to consider what you want; what are your intentions. Do you need a home to accommodate a growing family; do you need a home to address your need to have accessibility and to age in place?  Is it possible that you need to live closer to work, shopping or entertainment? Did your income increase or decrease; do you need a smaller mortgage payment or more tax deductible interest?  Prioritize your objectives with the purchase of the new home and start looking at other wants and needs.

Consider the style and size of the home that you desire.  Are you willing to purchase a home that needs time and sweat equity to be perfect but is the right size or do you want a home that is perfectly kept but a bit smaller than you would like. Do you need a large space outside for entertaining? If you are looking for a home to grow old in you may only need to take into account the fact that your biggest goal is a ranch, a home all on one level.  Is there a certain location that is needed, perhaps by a highway or work? When it comes to location also consider the schools, the commute to work and the neighborhood.

This is just the beginning of buying a new home.  It doesn’t matter if it is your first home or your last the process is the same from start to finish.  The beginning of the home purchase process all starts the same. It is important to consider your finances, your personal preferences, your wants and your needs.  Prioritize what is most important to what is least important for you and choose a realtor that is willing to help you get what you want.

Lake and Land Real Estate is Livingston County’s premiere realtor out of Pinckney, Michigan serving homes that provide a recreational lifestyle including golf courses, lakes and the Huron river chain of lakes, throughout Hamburg, Pinckney and Howell.  More information can be found at http://www.lakelandmi.com/buyers-resources.php