There’s a lot that goes into the purchase of a new home whether you’re trying to find your dream home among real estate in Northville, homes for sale in Royal Oak or you’re picking through foreclosures in Novi and communities like Livonia.  It’s a complex process with a lot to consider.

As you prepare to purchase your first home, here’s a list of things to keep in mind when you’re trying to make the right decision on where and when to buy.

• If interest rates climb even a little, you may not be able to afford as much house as you and your family can afford right now
• Get keen insight into just how much house you can afford by getting a pre-approval through a Michigan mortgage lender
• There have been significant drops in housing values over the last 6 years.  If you plan to stay in your home for up to 5 years then you’re extremely likely to see housing values begin to appreciate
• Remember that you can reduce your tax obligation with deductions from mortgage interest and property tax
• You can stop throwing rent out the window when you purchase a home, that means building your own wealth and not the wealth of a landlord
• If you buy a home now with a fixed-rate mortgage then your rate stays the same until your home is paid off unlike renters who may have rent increased as the economy changes.
• Some markets in Michigan are down as much as 30%, which makes it difficult to find better deals on homes than you can right now.
• Do not buy emotionally, whether it’s from fear or excitement.  Put emotions aside and consider the decision that’s best for your family in the long term.  Just don’t be afraid to finally pull the trigger when the time is right.
• Never trust your eyes when you’re looking at a home.  They can play tricks on you and keep you from seeing the flaws.  Always have a home professionally inspected before saying “yes”.
• The more money you have on hand the less you pay in the long run, the better rates you’ll see and the lower your monthly payment.  If you can, take the time to build a cash reserve before rushing in to buy a home.  You’ll always start off on the best foot.
• It’s OK if now is not the right time for you, but still talk to a Michigan mortgage lender.  They can help you create a game plan that will get you ready to buy a home sooner rather than later.
• Don’t out and start paying off old debt to make your credit look better.  Some actions that involve your credit could do more harm than good.  Talk to a Michigan mortgage lender first to analyze your situation.
• Get pre-approval first, then shop for homes.  If you start looking at homes first you’ll set yourself up for disappointment, especially if you’re looking out of your price range.
• Talk to reputable real-estate agents in your area about the real-estate climate. Do they believe prices will continue falling or do they think your area has hit bottom or will rise soon?
• Before applying to the Bank of Mom & Dad (or family and friends), note that outright cash gifts can result in big tax bills. Avoid them by structuring parental assistance as a bona fide loan with minimum interest rates set by the Internal Revenue Service. Forms for such transactions are posted at sites like Nolo.com

Ready to get more info and find out if you’re ready to buy your first home?  Contact me today at Ross Mortgage and talk to a Michigan Mortgage Lender about the next step for you and your family.