Grand Rapids, MI Homebuying Tips

Grand Rapids, MI Homebuying Tips

Jack Groot and the rest of Groot Realty Co. is your best of real estate information, such as Grand Rapids, MI Homebuying Tips, and more.

The state of Michigan is the perfect place to look for real estate investment because of its low cost of living, competitive housing market, and low vacancy rates. Grand Rapids, in particular, currently has the highest investment value in the state. Property values in this city have been steadily rising in recent years and are projected to grow at least at the rate of inflation in succeeding years. Typically, Grand Rapids homes receive two offers and are sold in just a couple of weeks. It is apparent that competition is extremely high for prospective buyers and investors.

The process of buying a home is not simple, and it can get a bit overwhelming especially if you are a first-time homebuyer. If you are in the market for a Grand Rapids home, here are some tips to help you go through the process of buying a property smoothly and get the best deal from your purchase.

Check Your Credit Score

The first thing you need to do is request for a credit report, as your credit score will influence the interest rate of your loan. The Fair Credit Reporting Act (FCRA) requires each of the nationwide credit reporting agencies – Equifax, Experian, and Transunion – to provide you a free copy of your credit report once every 12 months, upon your request. This report will be helpful as you assess your credit score before you request for a loan.

Start Saving for Your Down Payment

Although you may purchase a home without paying a down payment, it is best if you are able to provide a 20% down payment. Doing so will enable you to pay off your mortgage faster, avoid private mortgage insurance, and get a better rate.

Start Saving for Your Down Payment

Contact More Than One Lender

When shopping around for a mortgage, it is to your best interest to talk to more than one lender. Fees and interest rates can vary substantially depending on the lender. According to data from Freddie Mac, borrowers receive rates ranging from 4.2% to 4.8%, and the average borrower can save $1,500 just by getting one extra rate quote when applying for their mortgage; they can even save as much as $3,000 or more with five quotes.

Get a Pre-Approval As Soon As Possible

Pre-approval is a standard step that homebuyers need to prior to house hunting. During this stage, a lender reviews your financial status, including your income, assets, debts, expenses, and credit score. Take note that this is not the same as a mortgage pre-qualification, which lets you know to what extent a lender will be willing to extend their financing. Mortgage pre-approval is a commitment to loan the funds under certain conditions. Typically, mortgage pre-approval is valid for a set term, such as 60, 90, or 120 days. Considering the length of time you may be spending house hunting, it is a good idea to get a pre-approval as soon as possible.

Get a Pre-Approval As Soon As Possible

Get Your Documents Ready

Pre-approval is a standard step that homebuyers need to prior to house hunting. During this stage, a lender reviews your financial status, including your income, assets, debts, expenses, and credit score. Take note that this is not the same as a mortgage pre-qualification, which lets you know to what extent a lender will be willing to extend their financing. Mortgage pre-approval is a commitment to loan the funds under certain conditions. Typically, mortgage pre-approval is valid for a set term, such as 60, 90, or 120 days. Considering the length of time you may be spending house hunting, it is a good idea to get a pre-approval as soon as possible.

Work with an Agent You Trust

Work with an Agent You Trust

A real estate agent is a licensed professional who assists buyers and sellers of real property. Having an experienced and trusted real estate agent by your side as you navigate through the home purchase process can help you in so many ways. For one, your real estate agent can help you save time and effort looking for the perfect home, since they are very familiar with the price range and neighborhood. They are also adept at negotiating, so you can rest assured that you will get the best deal from your purchase. In addition, they know the required paperwork and the process so well, so they can help you close on time.

Keep A Conservative Budget

Although you may get pre-approved for a specific amount, it is best for you to create a budget and determine what your real limit should be. Having this conservative budget will allow for financial flexibility in the case your property will be needing some home repairs. You also need to keep in mind that, aside from the list price, buying a home will also include other costs, such as inspection fees, earnest fees, and moving fees. You will also be needing to factor in the cost of buying new furniture. And don’t forget that you will also have to add property taxes, insurance, and home repairs to your monthly budget.

Avoid New Credit Activity

Keep in mind that mortgage pre-approval does not guarantee funding. Your lender may change their terms or revoke the offer entirely if your credit score or income changes drastically between pre-approval and close. So, if you are applying for a mortgage soon, it will be best for you to refrain from opening new credit accounts and stay on top of any bills to keep your score.

Grand Rapids, MI Homebuying Tips infographic

Looking for a home in Grand Rapids, MI need not be stressful. By taking note of these tips, you will be able to go through the process smoothly and get the best deal from your home purchase. If you need help searching for the perfect home in this area, negotiating with the seller, or anything related to your home purchase, we are here to provide our professional services. Give us a call at 616-483-0572 or email us at [email protected] for any questions or if you would like to schedule an appointment.

No Comments

Post a Comment