Ready to find your first home?

Let’s talk about money. Before you start house hunting, it's crucial to get pre-approved for a mortgage. This involves meeting with a lender to assess your financial situation and determine how much you can borrow.

What is your credit score?

Your credit score plays a vital role in your loan eligibility and interest rates. It's a numerical representation of your creditworthiness based on your credit history. If you don't know your credit score, you can access your credit report for free at AnnualCreditReport.com. This website is authorized by the federal government to provide free annual credit reports from all three major credit bureaus (Equifax, Experian, and TransUnion). You can also check your credit score through your bank or use credit monitoring apps like Credit Karma, but keep in mind that these methods may not always be free.

Site: https://Annualcreditreport.com

Here is a rundown of credit scores and what loans you may qualify for depending on credit.

Type of Loan  Credit Score  Down Payment

VA Loan  620  No Down Payment

USDA Loan  620  No Down Payment

FHA Loan  580+  3.5%

203k Loan  500 – 579  10%

Conventional 97  620  3%

Conventional Loan  640  5 – 20%

Down Payment Assistance

Site: https://www.michigan.gov/mshda/pathway-to-housing

If you need help with your down payment, explore the assistance programs offered by the Michigan State Housing Development Authority (MSHDA) on their website above. These programs can provide valuable financial support to make homeownership more attainable. If you're interested in these options, I can connect you with a lender experienced in these programs who can guide you through the process and ensure a smooth home buying experience.

Qualifying Income

·  W2 Income / Salary

·  Income from part-time jobs

·  Income from a second job

·  Overtime & Bonuses

·  Seanson Jobs

·  Self-employed income

·  Alimony & child support (Documentation Required)

Need Documents

·  W2’s from the past 2 years

·  3 months worth of pay stubs

·  Bank statements (Past 3 months)

·  Previous 2 Years of Tax Returns

·  List of your debts & Assets

·  Divorce Decree (if this applies)

·  Additional Income Documents

This part can be difficult, but it doesn’t have to be. This is about picking someone you trust to guide you through the process. Your agent will be your trusted advisor, guiding you through the entire process, from finding the perfect home to negotiating the best deal. Look for an agent to:

• Guide you through the process
• Knowledgeable of the local market
• Committed to protecting your interests
• Solve Problems / Work through challenges that may arise throughout the process

Before you start house hunting, define your needs and wants. Make a list of must-have features and those you'd prefer but could live without. For example, a fireplace might be desirable, but you might prioritize a two-bathroom home. This will help you focus your search and make decisions when you find a home you love. Now, it's time to start touring available homes! Here are some things to consider during each visit:

Test

o  Plumbing (flush toilets, run faucets, find main shut off valve for home, etc)

o  Turn on/off lights (look for rooms without over head lights, the light switch may control an outlet)

o  Open every door that you have access to

o  Make sure you understand where all access points are to basements, attics, etc. (if the house has access)

Neighborhood

o  Look around the outside of the home

o  Evaluate condition of neighboring homes

o  Is this location near the amentities you want

     -  Grocery

     -  Shopping

     -  Schools

     -  Etc

Awesome! This home is the one, now it’s time to make a compelling offer. Things to consider:

Determining Your Offer Price

• Collaborate with your agent: Your agent will help you analyze comparable sales (comps) in the area, assess the home's condition, and factor in your budget to determine a fair offer price.
• Consider market conditions: A hot market may require a more competitive offer, while a cooler market might allow for more negotiation.

Crafting a Strong Offer

• Offer a competitive price: Present an offer that reflects the home's value and motivates the seller.
• Be prepared for a quick close: A shorter closing timeframe can be attractive to sellers.
• Include an earnest money deposit: This demonstrates your commitment to the purchase.
• Consider a personal touch: A letter to the seller can help your offer stand out by explaining why you love the home.
• Cash is king: If possible, a cash offer can give you a significant advantage.

Possible Seller Responses

After submitting your offer, the seller may:

• Accept your offer: Congratulations! You're one step closer to owning your dream home.
• Decline your offer: If your offer is declined, you may need to re-evaluate your offer price or terms.
• Counter your offer: The seller may propose different terms, like a higher price or different closing date. You can then accept, decline, or counter their counter-offer.

Once Offer is accepted and both parties sign contract, on to next step, inspections

During the inspection period, you'll hire a licensed home inspector to thoroughly evaluate the property. The inspector will provide a detailed report outlining any issues. You can then decide whether to accept the property as-is or request the seller to address some or all of the findings. We'll work together to prioritize the most significant issues and negotiate repairs or credits accordingly.

NEGOTIATE final offer

The home inspection often reveals items that need attention, which can lead to further negotiations. 

Here's how we can navigate this stage effectively:

• Prioritize repairs: We'll carefully review the inspection report and prioritize any significant issues that could affect the home's value, safety, or functionality.
• Focus on major concerns: While we'll advocate for addressing necessary repairs, we'll also keep the bigger picture in mind and avoid getting bogged down in minor imperfections.
• Explore your options: We can request the seller to make repairs before closing, ask for a credit to cover the costs, or negotiate a combination of both.
• Maintain a strategic approach: We'll work collaboratively to present reasonable requests and negotiate effectively while maintaining a positive relationship with the seller.

***Remember:

• Not all issues are deal-breakers: Minor issues like a leaky faucet or a cracked tile can often be easily fixed.
• Focus on your must-haves: Keep your priorities in mind and be willing to compromise on less important items.
• Maintain perspective: Every home has imperfections. Our goal is to ensure you're comfortable with the overall condition of the property and any remaining issues.

Property Title Search

This ensures that the seller truly owns the property and that all existing liens, loans or judgments are disclosed.

Home Owners Insurance

You'll need insurance for the new home before closing. This will protect against things like fire, storms, and flooding.

After Signing

·  Finalize Home Mortgage

·  Schedule Home Inspection

·  Declutter! Sort through every drawer, closet, cupboard & shelf, removing items you no longer need or like. Donate or sell items that are in good condition

·  Get copies of medical records and store them with your other important documents

·  Create an inventory of anything valuable that you plan to take

·  Get estimates from moving companies

Timing

4 WEEKS TO MOVE

·  Give 30 days notice if you are currently renting

·  Schedule movers/moving truck

·  Buy/find packing materials

·  START PACKING

3 WEEKS TO MOVE

·  Arrange appraisal

·  Complete title search (Title company will do this)

2 WEEKS TO MOVE

·  Secure Home Warranty (if interested)

·  Get quotes for home insurance

·  Schedule time for closing

·  Change address: mailing, subscriptions, etc.

·  Minimize grocery shopping

·  Keep on packing

1 WEEKTO MOVE

·  Obtain certified checks for closing

·  Schedule and attend a final walkthrough

·  Finish packing

·  Clean

·  Pack essentials for a few nights in new home

·  Confirm delivery date with the moving company

Be prepared to review a lot of documents and have communications happening between several different parties. Steps 7 and 8 explain in greater detail, but this is the time to remind yourself you are in it to win it so stay patience and consistent, almost there!

Closing is when you sign ownership and insurance paperwork and you receive your new home’s keys! Typically, closing takes four to six weeks.

CLOSING DISCLOSURE

Lenders are required to provide you with a closing disclosure, at least three days before closing. This will show you what your final loan terms and closing costs will be. You will have three days to review the statement. This is done to ensure that there are no surprises at the closing table. If there is a significant discrepancy between the loan estimate and the closing disclosure, we must notify your lender and title company immediately.

FINAL WALKTHROUGH

We will do a final walk through the home within 24 hours of closing to check the property’s condition. This final inspection takes about an hour. We will make sure any repair work that the seller agreed to make has been done. We will be sure to: 

·  Make sure all appliances are working properly 

·  Run the water in all the faucets and check for any possible leaks 

·  Open and close garage doors with opener 

·  Flush toilets

·  Run the garbage disposal and exhaust fans

CLOSING TABLE (Who will be there):

·  Your agent

·  The seller

·  The seller’s agent

·  A title company representative

·  Your loan officer

·  Any real estate attorneys invluve in the transaction

The closing typically happens at the title company. You will be signing lots of paperwork so get your writing hand warmed up! Some of the papers you will be signing include: the deed of trust, promissory note, and other documents.

CLOSING COSTS

Closing costs can vary depending on your home’s purchase price and where you are located. You can generally expect your closing costs to be around 3% to 4% of the home’s purchase price. These closing costs can sometimes be shared with the seller.

BRING TO CLOSING

·  Government-issued photo ID

·  Copy of the sales contract

·  Homeowner’s insurance certificate

·  Proof of funds to cover the remainder of the costs

All paperwork has been signed and updated accordingly with a fine tooth comb. Now time to relax and receive your keys! Congratulations, we did it!

Enjoy your home, elevate the look with paint, some furniture you like, have a party, and take it easy! Remember to keep an eye on interest rates for your mortgage and work to pay it off as fast as possible, allowing the equity to grow and work for you!