Guide for Michigan First Time Homebuyers Getting Their First Mortgage
The First Time Homebuyer
Generation Y has yet to “buy in” to the idea that homeownership is the way to go, unlike the Gen X and Baby Boomers have before them. The first time homebuyer currently makes up approximately 31% of all Purchase transactions and this number is at an all time low.
With so many young, 20 something’s still living at home with Mom and Dad, this number will continue to go lower until these folks are confident they can handle this big step. What do we have to do to get these kids of the fence and sitting between them? Knowledge is the answer!
Tips For Michigan First Time Homebuyers Entering The Housing Market
If you are at the point of considering becoming a first time homebuyer, that means you have already given it plenty of thought (and brain space) and are ready to understand the next steps in the home buying process. But the Housing Market has been plastered all over the media, from housing values dropping 50% in some cities to the blight plague in Detroit. It's easy to get turned off on homeownership if you don't check your facts!
In 2013, the Michigan housing market one of the most improving markets in the nation! Low mortgage rates and high competition has drive home values back up at a fast rate. According to Realcomp, since 2012 places like Oakland County (1937% price gain), Livingston County (21.4% price gain) and Wayne County (33.3% price gain) have become ideal markets to buy that first home. And with rent costs soaring nationwide, buying a home not only becomes a great living arrangement for your family but a good investment again as well.
Here is what you need to know next as a first time homebuyer:
Thinking Of Buying A Home - Speak With A Loan Officer First!
It is never too early to speak with a Loan Officer. This first step does NOT cost you anything. The loan officer will help provide guidance on monthly payments, loan amounts, as well as review your credit report with you. We have helped hundred of first time homebuyers acquire financing for their ideal first home and can help you be prepared for the journey.
Mortgage Approval - Get Your Financial Documents In A Row:
This will probably be one of the toughest chores for most first timers. Be prepared to collect the last 2 years W2’s and tax returns, 30 days worth of paystubs, and 2 month of bank statements at a minimum. Mortgage Underwriting is still very thorough, so get organized and keep all future documents handy in one place for easy access.
How Long Does It Take To Buy My First Home?
Writing an offer and having a seller accept it can go quickly, maybe only a day or two. However, getting to the spot where you are ready to write that offer could take 4-6 months. With Inventory levels of homes at or near all time lows, it may take a while to identify the home you desire. Mortgage underwriting standards are stringent, so your application to close process may take up to 60 days. Becoming a first time homebuyer can be a long process that requires patience and determination to get across the finish line.
Do I Need A Realtor?
Yes, especially because it does not cost you a dime if you are buying a new home. Realtors have many different resources to assist you in the home search including information about homes not actively advertised in your market. The realtor can assist in negotiations with the seller and give advice to which inspections are required or recommended for the area.
Here are some helpful links to help you get started and be prepared for the journey: