The real estate market is changing for the better in Southeast Michigan and the Metro Detroit Area.  Whether you’re looking to buy your first home in Oakland County or Wayne County, a slump in the market, reduced home values and down interest rates on mortgages give you real buying power.

What holds up a lot of first time buyers though is a lack of understanding in the overall process.  Above all else, the most important thing to remember is that you don’t need to know everything about buying a home in order to buy one.  It’s important to do your homework, but a mortgage banker in Michigan like myself and a knowledgeable real estate agent are there to help educate you.

To get a jump start on the process, here’s a list of tips for buying your first home to give you some insight into what you can expect and what you should be doing in preparation of buying a home in southeast Michigan.

As a First Time Home Buyer… Don’t Rush

Stop staring at the clock and checking your watch trying to race to get a mortgage finance pushed through.  Home prices aren’t predicted to rise anytime soon from their current levels.  Instead of stressing over buying your first home and trying to move the process along (that’s a bit like watching water boil to make it go faster), take the time to educate yourself.

Spend more time researching the areas you want to live, setup budgets, calculate costs and prepare yourself.

First Time Home Buyers Should Keep Tabs on Their Credit

If you’re house hunting, pull back the reins and first review your credit.  Sites like myfico.com can give you an accurate depiction of your credit score.  You should also obtain a copy of your credit report from each of the major credit bureaus (Trans Union, Equifax and Experian).

What you do with those reports will vary greatly depending on your individual situation, so it’s best to review your credit with a Michigan mortgage broker and seek pre-approval to find out what kind of home you can afford, if you can get pre-approval, etc.

Which leads to the next point.

First Time Home Buyers should Seek Pre-Approval for a Mortgage

Getting pre-approved for your mortgage makes the entire process much simpler.  You know how much house you can afford, you won’t waste time looking at houses out of your budget, and a pre-approval is a great bargaining chip when a seller knows there’s money at the ready.  If they’re ready to sell right away you can often negotiate the home price in your favor.

First Time Home Buyers can Benefit from an Agent

When you’re looking for a home in Southeast Michigan, a mortgage broker can often put you in touch with any one of countless real estate agents to represent your needs, wants and interests.  Avoid working with the agent who represents the seller of the home.  It’s best to find an unbiased party who can help you analyze the market, negotiate the best price and get the home closed.

First Time Home Buyers Should have Reasonable Expectations

Even if you’re in the market for a foreclosure or short sale, don’t expect to get a steal on a home.  Home values may be down, but given the rate at which foreclosures and cheaper homes are being picked up, you can expect a discount but not by much.  There are a lot of factors that come into play when you consider the price on a home.

Don’t focus on price; look beyond it to more important things and don’t worry about trying to get the best deal.  When you pay peanuts, you get monkeys.  Try other negotiation tactics for your first home other than cutting down the price you pay for the home.  You might even get lucky and find a motivated seller willing to pay closing costs or do last minute repairs before selling the home.

Lastly, first time home buyers should work an inspection clause into the agreement.  This way, if a problem turns up in the house you want to buy, you can use that issue a bargaining chip to negotiate a better price, or cancel the deal completely if the problem is bad enough.

Ready to move forward and find out if it’s time to get that dream home?  Contact your Michigan Mortgage Broker today