How to Buy a House

How to Buy a House

With spring just around the corner(ish), this is the time of year when people start thinking about buying a house. Many first-time (and even second-time) homebuyers will find themselves asking how to buy a house. Let’s be honest, it isn’t exactly something they cover in school. Buying a house is not for the faint of heart and this uncertainty can often be overwhelming, but be brave little soldier, we’re here to help.

To get you started, here is a link to our Buyers Guide that will also be a tremendous help in getting to know the process of how to buy a house! It walks through the entire process with you so that you don’t miss a thing. It’s perfect for the person who loves details and research.

However, if you’re just looking for an abbreviated version that gives you the main highlights we’ve got you too! Here is our Buyer’s Guide Highlights Sheet.

Once you finish step 2, you will have someone to help guide you through the rest of the process, but the first 2 steps are pretty much up to you.

Step 1 – Get Pre-approved for a Loan

Unless, you have a generous rich uncle or are a trust fund kid and can buy a house with cash, you will need a loan. So, you may be wondering “How do I do that?!” First thing is first, you have to shop around. Not all lenders are the same and neither are their rates. Talk to several lenders to find the one that works best for your situation! The time to shop around is before you find a house that you like! Once you find a house that you like and are under contract, you have to get the lending application finalized so that there aren’t any delays with closing. It takes lenders about 30 days to do everything on their end so every day you wait counts!

There are many different loan options out there including ones that require as little as 3% down. That being said, putting 20% or more down is ideal because then you don’t have pay PMI. PMI stands for Private Mortgage Insurance and is a fee on top of your regular payment that you must pay until you reach having 20% down. This insurance helps to cover the risk to the bank for buyers with less money for a down payment.

When going through the pre-approval process, you will need to provide the following

• Last 2 w-2’s
• Income verification
• Last 2 bank statements
• Driver’s license/identification

For your convenience, we have put together a list of lenders that we have found to be reliable and get the job done. Check them out and see if any of them are right for you.

Susan Dwornick

PNC

734-429-9178

susan.dwornick@pnc.com

Jennifer Coppola

Highlands Mortgage

248-310-9347

jcoppola@highlandsmortgage.com

Amanda Lawrence

John Adams Mortgage

734-417-1520

tamanda@johnadamsmortgage.com

Carrie Aeschliman

Independent Bank

734-426-7978

caeschliman@ibcp.com

STEP 2- Hire a Quality REALTOR

Obviously, we hope you chose us, but if you don’t, there are plenty of other high-quality REALTORS out there. Here are some things for you to look for when choosing your REALTOR.

1.    Is knowledgeable

2.    Has integrity

3.    Has a team to help them

4.    Communicates information well and keeps you in the loop

5.    Knows the area you are looking in

6.    Has a great customer service mindset

7.    Has experience

8.    Knows the laws related to real estate

9.    Is working for a reputable company

10. Has your best interest at heart

11. Has connections

12. A commitment to continuing education

The REALTOR you choose can have a big effect on your overall experience with buying a home. A great agent is worth their weight in gold (of course we may be a little biased LOL). Your REALTOR is more than just a glorified door opener, they offer guidance often fill the roll of counselor and confidant. They are the first line of communication between, you, the sellers, their REALTOR, and the title company. They keep on top of everything to make sure that all deadlines and paperwork are on track. Your REALTOR negotiates on your behalf for both the purchase agreement and if there are any issues with the inspections. Essentially they do everything in their power to ensure a smooth closing.

Check out our Housing Market Report for Washtenaw County January 2022 as well as our blog about the 5 Most Popular Neighborhoods in Saline.

Thanks for reading!

Chrissy Myers

MI Home Team