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Top Ten Mistakes Buyers Make
1. Not getting pre-approved by their
lender before beginning the home
selection process.
2. Getting advice from well meaning
friends and family.
3. Not establishing a relationship with
one agent.
4. Purchasing a home without a home
warranty.
5. Thinking there is only one "perfect
house" out there.
6. Using an "out of area" agent that is
not knowledgeable of the local area.
7. Jumping from agent to agent during
the home selection process.
8. Making a major purchase (furniture,
car, etc) before the closing. This will
change your debt to income ratio and
could jeopardize your mortgage.
9. Not understanding how much and
when property taxes will change
after the home is bought.
10. Not getting an estimate of home
owners insurance before making an
offer on a home. Learn insurance
rates by city and zip code.
BUYER FAQ
What is a pre-approval, and why do I need one?
A pre-approval is a letter or certificate from a lender stating that you are approved to borrow a certain amount of money from them. A pre-approval is necessary for several reasons. No seller will even consider an offer from someone who has not been pre-approved. Also, knowing how much you are approved to purchase helps define the search for your home.
What is the closing?
The closing is the event by which the loan goes into effect. It is also the time that ownership is transferred and the borrowers take title to the property.
What do I need to bring to closing
You will need to bring a copy of your new home owner's insurance policy with a paid receipt, your picture ID and a cashiers or certified check for the amount given to you by your loan officer.
When will we close?
Closing is typically 30-45 days from the time that your offer is accepted. This time can vary depending on many variables. For instance, the quicker you supply your loan officer with any documentation he requests, the sooner he can process your loan
Who will be at closing?
Who attends may vary. Usually, there will be a representative from the title company (commonly referred to as "the closer"), the Sellers and their Agent, the Buyers and their Agent, and sometimes the loan officer.
Where will the closing be?
The closing will typically take place at the Title Company or the Listing Office.
How much will my taxes be?
Taxes are listed as what the current owner pays. When the property changes hands, the taxes will be uncapped and the Buyer will pay the new amount. Taxes are based on the school district's milage. Tax amounts can be calculated using that figure and the property's Taxable Value. Ask your Realtor or check Michigan.gov's "tax estimator" link on this site.
Will I get keys to the house at closing?
Often times the answer is yes. However, sometimes the seller needs some time to finish their move. For instance, they may not be closing on their new house right away. In a case like this, they will pay a portion of your mortgage for the days that they remain in the house after closing. Also, in the case of bank owned (REO) homes, many times the property will close in escrow, meaning keys will not be distributed until the Seller signs off on the property. This typically takes a day or two.
What are "seller concessions"?
Seller concessions are funds that the Buyer borrows from the Lender to pay the agreed upon purchase price, from which the Seller "refunds" a portion of back to the Buyer to pay closing costs.
Does the Seller have to pay concessions?
No, the Seller could choose not to pay concessions. However, most Sellers have no problem assisting a Buyer as long as their bottom line is not affected too drastically. | 