Common Buyer Questions (Michigan)

Looking to buy a house but a little confused on the process? there are others just like you, here are common questions buyers are normally asking.

What's the first step to the home buying process?

Getting pre-approved should be your main goal before you evern start to look for houses, if you arent pre-approved and find a house you love, chances are someone else is going to get it, since theyre pre-approved and can throw an offer down before you. Or youll go thorugh all that work looking, and not get approved for the amount you like or at all.

2. How Long Does it Take to Buy a Home?

Genrally the avergae amount of days it takes to find and buy a home is 30-45 days, again they all differ depending how long it takes you to find your home.

3. What do I owe the Realtor?

NOTHING, the seller usually pays for realtor compensation, unless its a for sale by owner than youd have to talk out an arrangment for compensation.

4. What kind of credit do I need to buy a home?

usually 620+ but their are other ways of financing if youre lower.

5. How much Money do I need for a Down Payment?

Genrally it can range from 3-5% mainly depending upon what financing you went with, wether its an FHA , Conventional, Etc.

6. What other fees would I have to pay for?

Lending fees; usually 2-4% of loan amount

Home Inspection; $300-$500

Closing Costs; 2.1%-4% of home value

7. When do I get the keys and move in?

genrally you get the keys upon closing, but if theirs an occupancy for the seller, it will be after the occupancy is up, or when they fully move out.

8. What is a Short Sale?

A short sale is when a mortgage lender agrees to accept a mortgage payoff amount less than what is owed in order to facilitate a sale of the property by a financially distressed owner. The lender forgives the remaining balance of the loan. Now a short sale is usually stressful anf long, so if you have the TIME and MONEY id recc. looking into short sales, because you may find them for lesser sales price.

9. What is a foreclosure?

A foreclosure is when the bank/ lender owns the property, if buying a foreclosure theyre usually sold "AS IS". Genrally foreclosures are bought up by investors for fix and flips.

10. How Many Homes Should I see Before I Put in an Offer

There is no set number! if you fall in love with the first house you step into and can picture yourself living there, PUT IN AN OFFER!

11. What is an Earnest Money Deposit?

The earnest money is a GFD (Good Faith Deposit), the main reason for this is to show the seller youre serious about purchasing their home, it is provided to the sellers agents office. At the end of the deal you would be getting back your earnest money deposit.

12. How Long Does the Seller Have to Respond to My Offer?

There is no set time, theirs usualy a "life to the offer" that can vary anywhere from 4 days to 12 hours. An agent will set the life depending upon the scanrio of the home and seller.

13. Do I need to do a Final Walkthrough?

As an agent I ALWAYS advise a final walkthrough the day before closing. Because if anything happened between and last showing and the closing date, if you dont catch it, it will turn into your problem as the new homeowner.

14. When's the Closing Date?

Many buyers ask their realtor this, when it isnt up to them! The attorneys are going to be the one scedualing the closing dates.