How To Buy A Home in Michigan, 10 Easy Steps To Make You The Ideal Homeowner

By Tim Tomkowiak

As the weather warms up and we move into spring season. Many first-time home buyers will start their homeownership journey. Some first-time home buyers wonder, where to start and how to actually buy a home. What we have found over the years, the first time home buyers that have carefully planned out their purchase, make the ideal homeowners. They have done their research and have all their ducks in a roll. If you are just starting out, below are the steps you want to take to make owning an home an reality. These steps will set you up for success and make your home buying journey go smoothly. Buying a home will most likely be your largest purchase and not something you want to rush through. Take your time and follow these steps to make owning your first home an success!

1. Check if you're financially ready: Review your current income, savings, fixed expenses, and debts. This will gives you a quick snapshot of your current situation and readiness. Also feel free to contact a loan officer to help you review these things and to make sure you are ready.

2. Get your finances in order: Pay off or pay down any outstanding debts, like credit cards or personal loans etc, To improve your credit score. Having a credit score above 660 will help you get better mortgage rates. In addition you want to start savings early and have at least 3% for your down payment.

3. Get pre-approved for a mortgage: This means a loan officer has reviewed your finances and believes you qualify for a specific loan amount. The lender will give you a pre-approval letter, which will show your buying power when you're ready to make an offer.

4. Find a real estate agent: A real estate agent can help you find the right home, negotiate with the seller, and facilitate the closing process.

5. Select a property: Figure out what you want in a home and have your agent show you properties that fit your preferences.

6. Make an offer: Offer a price and negotiate closing costs, necessary repairs, etc. based on your budget and the condition of the home.

7. Sign a purchase agreement: This contract will outline the details of the sale, negotiated repairs, fixtures sold with the house, and certain disclosures on the property.

8. Inspect the home: Have a professional inspect the home for any red flags, like damage or pests.

9. Close the transaction: This process involves working with your lender to secure your mortgage and purchasing homeowners and title insurance. Once everything is fulfilled, you'll do a final walk-through of the property and sign your mortgage documents.

10. Determine your budget: Your pre-approval letter will tell you how much the lender is willing to lend you, but you'll need to decide how much you're comfortable spending each month based on your fixed expenses.

We are were to help and please let me know if you have any questions! These steps will not only make you the ideal first time homeowner but will set you up for success!

Tim Tomkowiak

“I am a license loan officer. And I help ordinary people build equity and wealth through home ownership”