Category Archives: Buying Tips

Steps to Buying a Home

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There are many questions when you are a first-time home buyer. Often, I find most of my clients become overwhelmed by the process. They often don’t know where to begin and I am regularly asked by them how the process works.

Here are the steps I layout for them:

1.) Meet with lender and obtain preapproval letter from financing institution to learn financing capability

2.) Finding the right property (Home Search)

3.) Submitting the offer: Choose purchase amount, discuss contingencies (i.e. home inspection, appraisal, well/septic test, survey, etc)

4.) Acceptance of your offer

5.) Collect earnest money in the form of a check or money order-typically in the amount of $500-$2000 (amount will vary based upon the price of the home being purchased) upon acceptance of your offer.

6.) Upon acceptance of the offer: a time frame starts for contingencies to be completed (i.e. appraisal,home inspection, radon test, water test, survey, etc)

7.) Notify loan officer at the bank of acceptance of your offer

8.) Close on home-typically it is around 6-7 weeks for most lenders we work with to have all purchase paperwork completed, this is largely affected by how quickly the buyer provides the information the loan officer requests.

This is a just a general overview and each step will vary for each person but hopefully this helps paint a picture of the steps involved in the home buying process.

If you have questions about the home buying or selling process in the Upper Peninsula of Michigan, feel free to contact me. Whether your purchase or sale of a property is in the near future or further down the road, I’m here to help you on your real estate journey. My name is Rick Curtis and I am a licensed Real Estate Agent with Key Realty Delta County in Escanaba, MI. Call/Text (906) 280-6118 or email Rick@KeyRealtyUP.com

Does your real estate agent know your deal breakers?

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What are absolute deal breakers for you? When most of us are looking for our next home, we generally have an idea of what we want, but have you considered what your deal breakers are (Examples could include:type of insulation, main floor laundry, 3 bedroom/2 bathrooms, etc)? By sharing this information with your real estate agent, they can better help you with your property search and save you some excess time and headache of finding the right home by weeding out properties that don’t fit within your search parameters.

Searching for Good Bones

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When looking for homes, there is something for everyone. Do you know what kind of property you’re searching for?. When our family looks for homes, we often look for “good bones”. What does this mean? It means a structurally sound. This includes the foundation of the structure. When you examine the home, are the updates that are needed structural or cosmetic. Structural needs could be seen as roofing, electrical wiring or plumbing and cosmetic needs could be thought of as undesirable flooring or paint color. Cosmetic repairs may be desired, but are not necessarily a top priority. By sorting information like this, we were able to narrow down our search and see the potential costs associated with each home we were considering.

Check out this link to learn more about the differences between structural and cosmetic fixes.

HE Appliance Rebates

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Have you upgraded your appliances recently? If not, it may be worth thinking about, from a cost savings standpoint and from an efficiency standpoint as well. Last year, our family purchased a new washer and dryer set. With the deal we scored and high-efficiency rebates we received, we ended up getting a great set for the cost of the most basic washer and dryer combo. Now we have been able to enjoy lower water and electric bills. This is something to considering if you think an upgrade of an appliance is on the horizon.

Check out Michigan Energy Optimization to learn more about incentives currently available.

What’s the parking situation?

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When looking at a home, something to consider is “parking”. Where will you park your car(s). When our family was looking for the right home, this constantly came up because we felt strongly about having a garage that would provide an option to park in. Given that we live in the Upper Peninsula, we were aware that our winters are a bit more extreme than other parts of the country and this is something that was a deal breaker for us.

This wouldn’t only be a concern for yourself, but think about your guests. Where will they be able to park? The parking situation could affect your family and friends desire to come over to your new place, if it is less than ideal. Is there a driveway, is it big enough to fit multiple cars in, maybe there is parking on the road or in the alley? By thinking about these details ahead of time, you can narrow down your search and ensure that the property will suit your needs and preferences.

Pre-approval first will help you in the buying process

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Why should you get pre-approved before looking at homes? The biggest reason, is that you will be conveying to sellers, that you are a legitimate buyer who is serious about purchasing a home since you have already taken steps to start your process with your lender. Also,you’ll know that the homes you are previewing are ones that you can realistically afford. If you start looking at homes that are in the $350,000 range first, than after getting pre-approved for around $125,000. You will severely change what you are looking at. Also, by doing your homework up front, you will potentially save headaches down the road through the buying process.

Check out this article from bank rate for more information about the pre-approval process.

Don’t forget about the homeowners insurance

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Photo by Milly Eaton from Pexels

One of the most common things that many home buyers often forget about is getting home owners insurance in place as they approach their closing date. If you’re getting financing for the purchase (According to Zillow, 76% of buyers do). The lender will require this before authorizing the funds to for the sale to be completed. Also, by shopping around early you can ensure you find the best value and a policy that works for you.

Check out the list below for insurance agents in Escanaba:

Providing proof of funds, could strengthen your offer

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Throughout the home purchasing process, you may be asked to provide proof of funds. What does this mean? It refers to something tangible that can be offered as evidence that you, the buyer, can follow through with the purchase. It’s a type of validation that you have the money available at your disposal to complete the home purchase. It can come in a couple of different forms like a certified letter from your financial institution or an official document from a 3rd party providing an assurance that you have the funds needed at your disposal. This letter or documentation provides the seller with a piece of mind and as a result, they may be more willing to accept your offer. Keep in mind, this is different than a pre-approval from a bank. It would typically be utilized in a “cash purchase” or for your down payment or closing costs if requested.

Check out this article from realtor.com to learn more information about proof of funds.

Home Buying with Furry Friends

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One of the advantages of owning your home is the freedom to have pets in your house. According to the American Pet Product Association 68% of American households have pets. That’s about 85 million people.

Our family had a dog for nearly the last decade and the freedom to let our dog out and have a place for her to roam around was very crucial. At some times over those years we rented and at some times we owned. When renting, it proved especially difficult trying to find a place that would work for our family and our dog as well. With home ownership, you get to decide if you want to add add a pet as a family member to your home without needing it to be approved by your landlord.

Questions to consider if you do have pets and are buying a home:

1.) How much space do you need?

2.) Does the home have a fenced in yard?

3.) Do you need to register your pet with the city?

4.) Is there somewhere you can put your pet in the home if they can’t be out when visitors are over?

5.) Is there enough space to accommodate your family and your pet?

Once we finally purchased our current home, our dog truly seemed more at peace than ever. She knew she was finally home.

Guess what time of year it is

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Spring Cleaning

Spring is coming and what does that mean, besides the weather beginning to warm up and the flowers beginning to bloom? Its also Spring cleaning! It is that time of the year when we go through all our belongings and determine what we need and what we could live without. This is especially important when you are buying or selling your home. Spring cleaning can help streamline both the buying and selling process. Let me give you a couple of examples:

Buyer: If you have a large amount of personal belongings that you need to pack and bring to the new place, it can be very stressful. In my family’s experience, the less stuff we have to take with us the easier the transition seems. It becomes less daunting to pick up and move if there a great deal less to pack.

Seller: For prospective buyers, the more stuff you have in the home, the harder it may be for them to picture themselves in the home. They could become overwhelmed by all of your stuff and decide that it would take too much room for them to “make it their own”. It helps to organize your main living areas and even tidy up closets to give the buyer space to see living there.

Spring offers us a chance each year to in a sense, “begin anew” to lighten our load if you will. I would recommend that you look around this Spring to see how you can lighten up. Sometimes it can be overwhelming to know where to begin. Here’s a tip a family member previously shared with us: If we haven’t used it in a year, you may want to consider getting rid of it.

Happy Spring Cleaning!