When it comes to real estate in Northville, Novi, Royal Oak, Ann Arbor, Livonia, Plymouth and other cities throughout Washtenaw, Oakland and Wayne Counties, right now is the best time to purchase a home.  You likely hear that a lot, but it’s absolutely true right now because the market has never been so great for buyers.  We’re seeing interest rates and home values at record lows, and that means as a home buyer of Metro-Detroit real estate you save thousands of dollars.

Before you start searching for that dream home or perfect property and waste time driving through random neighborhoods for those hidden “for sale” signs, you need to back your choices up with good solid information.  That starts with knowing how much house you can afford and what areas are really the best to suit your needs.

Because when you buy a home, you’re not just buying a house you’re buying into the neighborhood and all the people around you.  Here are 6 things to keep in mind when you’re getting ready to buy real estate in Metro-Detroit

Get Advice from a Michigan Mortgage Lender

Seek advice from a professional in the industry.  While some first time buyers will head right to a realtor or buyer’s agent, you really want to talk to a Michigan mortgage lender or other mortgage professional first.  This way you can start a dialogue about how much home you can afford, if now is the right time, or if you need a game plan to prepare for a home purchase in the next year.

Get a Handle on Your Income and Debt Ratios

When you’re buying real estate in Northville, Novi, Ann  Arbor and other popular neighborhoods in Metro-Detroit, it’s extremely important to consider your income and debt ratios.  A good rule to follow is that your monthly housing payment is principal, interest, taxes and insurance (or PITI).  These numbers together should not exceed more than 28% of your gross income for the month.

Be Open and Share Your Information

When speaking with a Michigan mortgage lender, you need to be open and share all of your financial information.  This helps them to determine approximately how much house you can afford to buy.  When supplying information you should be prepared to give the Michigan mortgage lender basic income as well as debt information.

When you sit down, have your recent bank statements and paystubs, w2 and tax information for the last two years and be prepared for your Michigan mortgage lender to run a credit check on you and your spouse.

Get a Recommendation from a Michigan Mortgage Lender

Once you’re pre-approved for your mortgage, talk to your lender about connecting with a buyer’s agent.  They often have connections with professionals who work in the neighborhoods you’re interested in, and these individuals are often trusted so you can be comfortable speaking with them about helping you find the perfect real estate in the Metro-Detroit area.

Make the Right Plans for the Future

Avoid getting trapped in a home you cannot afford.  If you do plan on buying a home in Metro-Detroit that involves a higher house payment than you’re currently paying out in housing costs, take the difference between the current and proposed payments and start setting it aside in savings.  At the end of a few months two things will have occurred:

1. You will have trained yourself to be comfortable making the higher payment

2. Your savings that can be used for your home purchase will be much larger which can help reduce your monthly payments.

Ready to move forward with purchasing real estate in Novi, Northville, Royal Oak or other cities throughout Metro-Detroit?  Contact your Michigan mortgage lender today, I’m just a phone call away