Due to the COVID-19 pandemic, 2020 was a whirlwind of a year, especially for the real estate industry but not for the reason you may think. Many industries were upended by the events of 2020, and this may have also disrupted plans that you may have had concerning your future. However, this year is an entirely different story. Despite the economic uncertainty, there is an argument to be made about why you should consider making significant financial decisions, one of which is buying a house.
While this may seem odd to you, it’s important to look at the big picture. Mortgage rates have hit rock bottom, and many home builders and developers are offering special deals with significant discounts to entice potential buyers to go through with their home purchases.
Now, it’s important to note that despite being relatively easier, this is still a significant financial decision. However, there are ways for you to make the most out of this opportunity. To help you out, we’ve put together a list of three tips that you should keep in mind when buying a house:
Tips Before Buying a Home in Michigan
- Get Your Finances in Order. The first thing you want to do when buying a house is to get your finances in order. Now is the time to catch up on any missed payments that can negatively impact your credit score and debt-to-income ratio. This is because your credit score can dramatically affect the entire process of buying a home. You’ll want to aim for a credit score of 760 or greater, as this will help you qualify for the best interest rates on mortgages. But what if you can’t get your credit score that high? Well, you have a slew of different options. Conventional loans only require a credit score of 620 but often come with higher interest rates, and these types of loans are often also stricter when it comes to their qualifying guidelines. Because of this, they’ll likely look at your financial history to assess whether or not you’ll qualify for this type of loan.
- Do Your Due Diligence. Keep in mind that there’s more to purchasing a house than solely the principal and interest rates. Another important factor that you have to take into consideration is the property tax, but it doesn’t end there. While looking at the house’s property tax is a great place to start, you’ll also want to look up how the house’s property tax has been behaving in the last couple of years. This way, you’ll have a good feel of how the property tax in a specific location behaves, allowing you to make a more informed decision on whether or not to purchase a property. Doing the proper research can save you a lot of money in the long run!
- Work with a Mortgage Broker. Now, the last thing you have to understand is that you aren’t the only person looking to capitalize on this situation. Many people may be seeking to purchase the property that you’re currently looking at. As such, timing is everything, which means that you’ll want to close as soon as you’ve made your decision. One way to do this is to work with a mortgage company. Mortgage companies can help guide you through the entire process and will give you a leg up when it comes to closing quickly. Another step you can take to speed up the process is to be ready with your financial documentation so that you can submit it as soon as the mortgage company requests it.
Homebuying in Royal Oak With Mortgage City
Buying a home may seem a little daunting at first. Despite this, it’s important to start thinking long-term when it comes to your finances. Furthermore, it’s important to make the most out of the financial opportunity that the current situation presents. Hopefully, these tips shared above can help make this entire process go as smoothly as possible!
Are you planning on buying a house in Royal Oak MI? We at Mortgage City can provide you with the assistance you need to help you turn your real estate dreams into a reality. For more information, contact us at (248) 930-8709 today to see how we can help!
