Buyers Journey & First time home buyers Michigan
Buy with "The Beard"
Buying a home in Michigan is an exciting moment in anybody’s life. Whether you’re a seasoned home buyer or a first time home buyer Michigan, this guide can help you prepare. What you should know about the buying process is outlined below. Due to some great lending programs, a Michigan first time home buyer has quite an advantage over some other states. Be sure to view the financing page to see more options for first time home buyers Michigan.
Steps to buying: Michigan first time home buyers
Sometimes buyers don’t know they can use a Realtor to help them find their dream home. This is an especially important step for first time home buyers Michigan. You should be represented by someone other than the listing agent of the property. Reason being, the listing agent typically has a duty to represent their seller’s best interest. Typically, as the buyer, you don’t pay commissions to any of the agents involved as it is a seller’s cost. So it just makes sense to have a Realtor on your side to help navigate and negotiate on your behalf!
If you’re not going to be a cash buyer, and many Michigan first time home buyers are not, you’ll need to secure financing to buy your home. This is an important step and choosing the right lender or your needs is paramount. You Realtor can help you with this process as we have connections with many lenders.
Be prepared by having your financial documents ready for review. Also, be prepared for your credit to be pulled. This can be nerve-racking, but the faster you get the lender what they need, the quicker you can being looking at homes. Keep your Realtor in the loop with what is going on with the lender. They will want to know who you are woking with so they can speak with them about terms you may not be familiar with.
Congratulations on your pre approval! This is now the time to start looking for homes in areas you’re wanting to live. You’ve already had a few conversations with your Realtor on what you’re looking for in a property, now lets go see some!
Work with your Realtor to set up a search for homes fitting your criteria How many rooms & bathrooms are your needing? Would you like a home in the city or more rural? What features are important to you? Your Realtor will begin looking for these homes.
Let your Realtor know what properties you’re interested in seeing. They will also be choosing some for you to look at as well. Make a plan to go look at the ones you like and try to see a few in one day.
How to look at homes.
Your Realtor will be your guide when looking at homes. They will help you gain access to listed homes, and explain the features and details you need to know. You will surely have questions about the details, pricing, and inclusions for each property, and your Realtor will find those answers for you.
Looking at homes can be a whirlwind. Especially, when you see a handful of them in one day. Don’t worry, a good Realtor will help you keep track of the ones you like and don’t like. To help yourself remember, I often suggest bringing a pen and paper to the showings for note taking.
You've found the perfect home!
Yay, you’ve seen your dream home, and now it’s time to make an offer. If you’ve bought a home before you know the process. But for Michigan first time home buyers, it’s a brand new experience. Although an offer is submitted to purchase the home, the home is not under contract until it’s accepted. How do you get your offer accepted?
Work with a Realtor who is a strong negotiator and experienced.
Discuss likes and dislikes, & any defects you saw.
Commit to an initial offer price, and max purchase price.
Your Realtor will discuss options other than offer price to make your offer stronger. (This sets Realtors apart from one another)
Congratulations, your offer has been accepted! Time to celebrate a little. Now the work starts. For the next 15 – 45 days, in most cases, we’ll work on making sure the home is worth the money offered. For first time home buyers Michigan, make sure your Realtor advises you on the next steps quickly.
Finishing up the process
The inspection will be a cost to you as the buyer. It will be paid out of pocket, but is highly recommended to identify any underlying issues the sellers may not have disclosed or known of. After the inspection your Realtor will help you with requesting items to be fixed. The seller’s may agree to make the fixes or not. This is where having a good Realtor helps get you the things you want!
During the contract period you will be receiving all sorts of documents to read through. You Realtor will conference with you to explain each document and your options going forward. This can be a stressful process for first time home buyers Michigan. If anything becomes alarming, discuss it with your Realtor. Your Realtor may also refer you to an attorney if legal explanation is needed.
If you are obtaining a loan to purchase the home, an appraisal will be conducted on behalf of your lender. This is generally a buyer’s expense and may be charged up front. Depending on your loan type you may have the ability to roll the cost into your closing costs. Most first time home buyers Michigan use a government backed loan like FHA or USDA. This means a specific appraiser will need to be used, so plan for a longer appraisal completion time.
Your lender will work with you closely to get the loan funded. They will need your complete cooperation to get things done on time. They may ask for documents and explanations for expenses, income, and other life events. Be sure not to spend on credit cards or make any out of the ordinary purchases or deposits during this time. Click here for more info.
Closing table: You're now a first time home buyer Michigan!
Party time!! The closing table is what we work so hard for. You’ve been through the entire process and now it’s time to sign on the dotted lines. Your Realtor is still valuable to you at this time, as they will ensure there aren’t any errors on your final paperwork. Most likely you’ll be closing with a title officer who is employed by the title company. They will generally explain all the documents you are signing and answer questions as well. Be sure to have your government issued ID and also your closing funds. Once everything is signed and the loan funds, you’re now a home owner!
For first time home buyers Michigan, you’ll want to make plans to follow up with your Realtor in a few months if they don’t contact you.