For many of us, owning a home is the American dream, and for most it will be the biggest expense any of us experiences in our lifetime. This is why we need to be cautious about undergoing the home-buying process. This is especially important for first-time buyers. If you want to purchase a home in Southeast Michigan, this quick guide will highlight the most important steps for a successful real estate acquisition.
Let’s dive right in.
Evaluate Your Finances
Your first step is to take a closer look at your finances. Examine how much money you have in your savings accounts, how much you can comfortably save each month, how much debt you currently have, etc. A complete, thorough and honest evaluation of your finances will help you determine how much you can safely afford to spend on a home.
A big reason to assess your finances is that you’ll need cash on hand to cover the down payment. This payment is due soon as you close on the property of your choice.
In Southeast Michigan, your down payment will typically be 20% of the home’s total value, meaning you must have $40,000 to purchase a $200,000 property. You will have to pay taxes, closing costs, and other expenses associated with real estate purchases.
Select a Mortgage Lender
To manage the cost of your property purchase, you make arrangements with a mortgage lender. The Federal Housing Association (FHA), the Veterans Association (VA), the Michigan Down Payment Assistance Program, and the Michigan Home Flex Program are among the various lenders available to potential homeowners in Michigan.
The U.S. Department of Housing and Urban Development offers loans to eligible applicants, and taking out a conventional loan for your down payment is also an option.
Find a Real Estate Agent
Good real estate agents assist you through the house-buying process. They identify and show you potential homes, guide you through the contract negotiation process, help you make a reasonable offer, and take you through the closing procedures.
Reputable realtors have thorough local knowledge and a good reputation in the community. A good way to find reliable realtors is to check online reviews, consult with previous clients, and call them directly to find out what they have to offer you.
Find Your Property
Once you find the right real estate team in Southeast Michigan, you’ll let your agents know what type of house you’re looking for. They’ll then guide you through the options available to you, including the advantages and disadvantages of each.
The primary considerations here include property location, number of rooms, square footage, finishes, and general condition. You’ll also need to evaluate other aspects of the house, such as the school district, infrastructure, social amenities, commuting distance, etc.
Have an Inspection and Appraisal Done
Once you identify a property you like and make an offer to the property owner, you will need to have an inspection done. This will identify any potential flaws in the property that might make you decide not to buy the property, these could include problems with plumbing or electrical faults. If no problems are discovered, an appraisal should be next.
This involves examining the property’s condition, neighborhood, age, and property prices in the surrounding neighborhood to ascertain its value. This information will be provided to whichever lender is helping you finance the purchase.
Close on Your New Property
Once your financier approves your mortgage loan, you’re ready to close on your new property. The closing process involves bringing your lawyer (where necessary) and real estate agent together to sign documents officially transferring ownership to you.
Once this step is complete, you’ll be a proud new homeowner, congratulations!
The Southeast Michigan area is located on Michigan’s Lower Peninsula and is home to a large share of the state’s industries and businesses. Its real estate market is, therefore, highly competitive. Because of this, any potential investor in this market needs professional guidance to ensure they receive the best value for their money.
When you’re considering real estate in Southeast Michigan, make Kime Realty your first choice. With experienced, dedicated, and professional experts on hand to help you successfully navigate this complex process, you can’t go wrong. Start your search now!