The “rule of thumb” regarding loans is that your monthly housing payment such as the taxes, bills, insurance, mortgage, etc., should not be more than 28% of your income that you receive every month. When it comes to FHA loans, the balance of ration might be higher. The question that remains is, “How much do I need to borrow when buying your Farmington Hills Home?”
Here’s what you should focus on: it all comes down to “down payment”. The higher the amount you have saved, the easier it will be to get a mortgage loan for your Farmington Hills home.
Let’s clear this up for you. Following is some pertinent information that all homebuyers should know about before buying your Farmington Hills home:
Counting Your Savings
As said earlier, down payment plays the biggest role in the home buying process. If you have 20% down payment saved up, then you don’t have to worry about private mortgage insurance. Let’s say that you saved around $20,000 for the down payment. If the home in Farmington Hills, costs $100,000, then you are building equity from the start. However, if the asking price is higher than this, then you will be charged a PMI anywhere between 0.25% and 2%.
All in all, you will be borrowing less if you have the 20% down payment or more. Moreover, the lender will be more open to giving you a loan and at a low interest rate when buying your Farmington Hills home.
When calculating the monthly payments, factor in your debts too. Aim for a house that will cost you less than 28% of the monthly income. This is because you will be paying down your debts, and any missed payment might result in a penalty
Kinds of Houses Are You Looking For In Farmington Hills?
What are your future plans?
Do you see yourself having a family?
How many kids do you plan to have?
What are your aspirations regarding your job in Farmington Hills?
How is your lifestyle?
Questions like these give you a clear perspective of what kind of house you should buy in Farmington Hills. The price of the house increases depending on the neighborhood and the facilities offered within the community. The number of rooms, backyard, driveway and garage also play a role in the price range. Set a margin and tell your real estate agent to stick to it. Be realistic about your needs.
Be Mindful When Borrowing
Don’t bite more than you can chew! Financial stress is the worst and can quickly lead to depression. So, look for a house in Farmington Hills that falls under your budget and amounts to monthly payments you can easily pay.
Now you understand why it is so important to assess your financial situation before making this move. Look for a house that you think you can spend the next 10 to 20 years in. Changing houses within the span of 5 years will financially bankrupt you. If you want to buy a home for sale in Oakland County, Michigan, that falls under your budget and has all the features you need, then visit Homes2MoveYou.
Property inspections can be a confusing step in the real estate buying process. Home buyer emotions tend to be high and there is a lot of information to process. Understanding how inspections function may make it less difficult to deal with when the time comes. The following is advice on interpreting Farmington Hills Michigan inspection reports.
Inspections afford buyers the chance to scrutinize the major systems in a home, analyze more closely the property features, and understand how everything in the property functions. Buyers should select a certified inspector to perform this task. They typically inspect the hardware, utilities, and structure of a home. Inspectors take varying techniques, but most will check the exterior and interior and provide a comprehensive report. Home buyers should stay with the inspector and see as much as possible about the home. If any problems are identified, buyers should view the area in question personally and get a complete understanding of it. Remember that even though inspectors attempt to complete a complete inspection of each area of a property, they cannot view into walls and other unreachable areas, so there are limitations.
When home buyers see a home, they understandably only notice the most visible defects. An experienced inspector will uncover issues that may not be obvious or disclosed and write those problems in a report. Buyers must then form an opinion about the details of the issues. Attending the inspection will, again, help with this.
Suggestions for Renovations
Also included in inspections are basic suggestions for home owners. These are not necessarily critical items, but rather ways to protect against future ones or to improve the benefits of a home. For instance, an inspector may suggest that the grading around the foundation be increased to diminish the likelihood of water entering the foundation.
Interpreting The Report
Buyers must interpret inspection details and distinguish defects from suggestions. They can try to negotiate issues, but it is not prudent to ask sellers to perform upgrades. Properties are generally priced based on age and condition. If upgraded throughout, it would be priced higher than the existing price. For things that are in fact issues, a negotiation process must be completed.
Advice On Interpreting Farmington Hills Michigan Inspection Reports
Speak with your real estate broker for suggestions on how you should proceed. Remember that inspections cover both defects and general tips, and that attempting to demand upgrades can compromise the deal. Inspections are not an opportunity to renegotiate price but rather a chance to resolve serious problems that were not predictable. Consider different strategies and potential results with your real estate agent. This advice on interpreting Farmington Hills Michigan inspection reports was provided by Tom Gilliam at RE/MAX Classic. Contact Tom for more assistance on home inspections and other procedures related to the home buying process.
Showing Your Home and Tips to Help
When you have your home up for sale, you may be told that you shouldn’t be around during the showing.
In some cases, your listing agent may not even be there for every showing. It might just be the buyers and their real estate agent. So, who will be there to make sure buyers don’t miss a thing?
You know your house better than anyone else. You can point out all of the features that a buyer or their agent might miss.
And maybe you will be able to get a read on the buyers. Are they in love with the house, or do they need a little extra push? Maybe you can pick up on it and say what needs to be said, in case their agent isn’t selling them on your home.
Plus, doesn’t it make sense to be there to make sure nothing gets touched or stolen?
Or, maybe you simply don’t want to leave. What’s the big deal if you are in the other room, watching TV in your sweats? Or in the kitchen eating dinner? Or, if they really don’t want you around, maybe you feel just stepping out into the backyard is fine…
As much as you might have your reasons or rationale…don’t do it. Be gone when buyers come to see your home.
1. Buyers want and need their space.
When you’re in the house during a showing, you’re getting in the way of the buyers being free to explore and feel at home themselves.
You want them picturing themselves in their home…not with you in your home.
2. Agents want and need their space, too.
A buyer’s agent usually knows their buyer well. They know what other houses they’ve seen. What they like and dislike. What they hang up on. What they need to think through. What they need to get over in terms of expectations.
Sometimes that means the agent needs to say some pretty blunt things. In the least, they need the freedom to have some open conversation with their clients, without you being around to hear, to help their buyers work through any hesitations.
If your ears are in the room, or even the house, you’re probably getting in the way of some key thoughts the buyer’s agent may otherwise share in the moment…and not saying them may very well cost you an offer from the buyer.
3. They may not get excited.
If you’re around, buyers may want not want to “show their cards”. It’s natural for a buyer to not want the seller to see them get too excited, because people feel like it will hurt them in negotiations.
So, they hold back from not only showing excitement, but also from being excited. Not on purpose…it just happens.
You can be getting in the way of the buyer getting swept up in the moment.
4. You can hurt you own cause by saying stuff…
You may say something you regret.
Maybe you let something slip that hurts your position or ability to negotiate the best deal. It happens. You could feel like every one is getting along really well, and you are just making conversation, and the next thing you know, you’re telling them your life story. If you aren’t there, they have no way of knowing you desperately want the house sold, and would be fine taking $16,000 less than they were even thinking of asking. But if you’re around, it can happen. And it does.
Or, you might just start grumbling about something you hate about your neighbor, for instance. An offhand remark could easily make a buyer decide not to buy.
Or, you could say something insulting without realizing, like you hope they plan on having babies. You really want to sell your home to someone with kids. Maybe they can’t have babies and always wanted children. It would be hard for them to buy and live in a house after a conversation like that.
Or, you could violate a fair housing law without knowing. All it takes is an off-color, or careless remark, and you could find yourself in hot water.
Or, you could cite something that isn’t actually true, like you own the land all the way to that tree back by the neighbor’s shed. You may very well think so, but in actuality, you don’t. And if things move forward with them thinking what you said is true, it could come back to haunt you.
5. It can be just plain “creepy”.
You probably aren’t “creepy”. But some people are, or at least come across that way.
You can’t control how someone feels about you. Everyone has their own sense of what “creepy” is. What you feel is normal, friendly, or nice, could come across as creepy to a buyer.
In the least, you literally are “creepy”, in the sense that you are creeping into the space and thoughts of your buyer.
Sure, it’s still your space. But you gotta give people the space, to be in your space, so they make it their space.
So, when there’s a showing scheduled, go for a drive, or a walk. Or, go hang out at a neighbor’s house. (Feel free to sneak a peek at the buyer, but don’t be staring at them from behind the neighbor’s curtains the whole time…that’s creepy.) Go run errands. Go to the mall. Go grab a bite to eat…
Go anywhere but inside your home. Don’t even linger in the backyard or in the driveway.
You’ll be doing yourself more good than you could possibly do by being there. In fact, being there has more downsides than possible upsides.