What to do First-Time Buyers
  • Figure out how much you can afford for a house payment.   Sit down and think about how much you can truly afford to pay each month for a house.  You want to be able to live and enjoy life.  Then get Pre-Qualified: Meet with a mortgage broker and find out what the rates are and how much home you can afford to get with the payment you have decided on.
     
  • Get a pre-approval letter.  In Michigan most agents will not accept an offer without a pre-approval letter.  With a Pre-Approval, the buyer actually applies for a mortgage and receives a commitment in writing from a lender. This way, assuming the home you're interested in is at or under the amount you are pre-qualified for, the seller knows immediately that you are a serious buyer for that property. You should not have to pay for a pre-approval.
  • List of Needs & Wants: Make 2 lists on one piece of paper. The first should include items you must have (i.e., the number of bathrooms you need for the size of your family, a one-story house if you do not want to climb stairs, etc.). The second list is your wishes, things you would like to have (hot tub, pool, great room, etc.) but that are not absolutely necessary. Realistically for first-time buyers, you probably will not get everything on your wish list, but it will keep you on track for what you are looking for.
  • Representation by a Realtor: Consider hiring your own real estate agent, one who is working for you, the buyer, not the seller.   You want a buyer's agent.
  • Focus & Organization: In a convenient location, keep handy the items that will assist you in maximizing your home search efforts. Such items may include:

    1. One or more detailed maps with your areas of interest highlighted.
    2. A file of the Listings that your agent has sent to you, along with ads you have cut out from the newspaper.
    3. Paper and pen, for taking notes as you search.
    4. Camera to help refresh your memory on individual properties, especially if you are attending a series of showings.
    5. Location: Look at a potential property as if you are the seller. Would a prospective buyer find it attractive based on school district, crime rate, proximity to positive (shopping, parks, freeway access) and negative (electrical tower, busy roads, garbage dump, highways,) features of the area?

  • Visualize the house empty & with your decor: Do you like the layout?  Are the room sizes what you need?  Will your furniture fit in the rooms?  Is there enough light?
  • Be Objective: Instead of thinking with your heart when you find a home, think with your head. Does this home really meet your needs? Don't buy a home because you are tired of looking?  Or because of the way it is decorated now.  There are always new houses coming on the market, so don't make a rush decision that you may regret later.
  • Be Thorough: A few extra dollars well spent now may save you big expenses in the long run. Don't forget such essentials as:

    1. Include inspection & mortgage contingencies in your written offer.
    2. Have the property inspected by a professional inspector.
    3. Request a second walk-through to take place within 24 hours of closing.
    4. You want to check to see that no changes have been made that were not agreed on (i.e., a nice chandelier that you assumed came with the sale having been replaced by a cheap ceiling light).

  • All the above may seem rather overwhelming. That is why having a professional represent you and keep track of all the details for you is highly recommended. Please email me or call me directly at (313) 310-9855 to discuss any of these matters in further detail.