Buying a House in Michigan: The Process

Buying a house can be quite a task, and the process might get a bit overwhelming. You have to consider many factors when buying a house. It’s not just about finding the right location, but you also have to consider different loan options, find the best real estate agent, and many more. So if you want to buy the best house in Michigan and go through a smooth buying process, you must read this article further below. Over here, we have mentioned a few steps you must take before finalizing the process of buying a house in Michigan.

Buying a House in Michigan

1.      Choose the Best Real Estate Agent In Michigan

Having a real estate agent during your house’s buying process is important, as you need professional guidance to make the right decision. Your real estate agent won’t only help you find the best house, but they will also guide you in choosing the right lenders, lawyers, and escrow companies.

To find the best real estate agent, you will have to carry out proper research and compare the quotes from different real estate agents in Michigan. Always check their experience, review score, and ask others around you for their reviews when choosing a real estate agent. You will close the deal if you find a good real estate agent who communicates with you properly.

2.      Assess Your Costs

There are many costs involved when it comes to buying a house besides the property’s value. Hence it’s very important that you assess your financial situation by seeing how much you can afford to spend. For instance, you will have to check your credit score, calculate the down payment, closing costs, agent transaction free, and homeownership costs.

A good credit score helps when applying for conventional loans, and it is important to raise it if you find your credit score lower than 620. You will need a least 20% down payment, as the closing costs bring you closer to buying your dream house. You have to pay the closing costs from your pocket; however, it is a large sum of money. Your homeownership costs involve maintenance costs, requiring you to save at least 1% annually of your house’s value.

3.      Look For The Right Neighborhood

When looking for the right neighborhood, you must keep a few things in mind, especially when moving in with a big family. The first thing is the homes’ value in the neighborhood. The houses’ values will help you see if you’re able to afford to live in a specific neighborhood. For example, the median home value in Grand Rapids was $101,366 in 2010 and increased to $183,245 in 2020. The appreciation rate equals to 80.8%.

The second thing is the local lifestyle in that area. Your neighborhood should have specific features that will make life easier for you and you feel comfortable living there. Look at a few stats about the neighborhood, such as crime rates, reviews about the education system and schools, recreational spots (restaurants, malls), proper transportation, and proper infrastructure of roads.

4.      Begin With House Hunting

Once you’ve selected the neighborhood, start house hunting. When looking for different houses, separate the things your house must have from the things it will be nice to have in a house. You can also make a list of amenities that your house must have; this will make it easier for you to choose a house faster and within your budget.

Once you find a house that meets all your requirements, start making the right offers; convince the seller you are the best buyer. This involves a lot of tactics that your agent will help you out with. When making offers, you should be aware of the market, as you wouldn’t want to delay making an offer for your dream house before it goes into someone else’s hands. On average, a house in Michigan stays on the market for 63.2 days. However, it depends on the seasonal change as well. Hence, you wouldn’t want to waste any time.

5.      The Closing Process

Now you have reached the final step, which brings you closer to getting the house of your dreams. The closing process is one of the most important stages of buying a house. In Michigan, it takes 46 days for the closing process to end. Once you’ve signed the contract, you have to give a deposit, also known as earnest money. While this happens, the seller’s attorney will conduct a title search. According to laws in Michigan, the insurance proof and clear title are very important to see that the property doesn’t have any infringements.

Next, takes place the inspection stage of the closing. This involves the buyer signing and accepting all flaws or repairs they may have to take care of once they have bought the house. If they wouldn’t want to consider, they can back out. As the buyer, you can carry out a proper inspection of the house or request an additional inspection for your own satisfaction. Once you have carried out a proper inspection, you will need to give the seller proof of your homeowner insurance and an appraisal. Only after this, your mortgage contingency will clear off, and you can continue with the buying process.

The initial closing day comes after the above steps and involves the seller and buyer visiting the house. On this day, you will also have to pay off all the closing costs and the other half of the down payment. The paperwork signing will involve all the stakeholders, attorneys, realtors, buyers, and sellers to stay present in that moment.

Once you have all the signed papers and through with all the payments, you finally get the house keys in your hands. This is when the attorney will get the municipal government to transfer the deed.

Takeaway: Buying a House in Michigan Does Not Have to Difficult

So if you want to go through a peaceful and successful process, you need to hire the best real estate agent in Michigan. Michigan is a beautiful place to live in, and if you want to make the most of it and find your dream house, you must follow all the steps mentioned above. Once you hire the best realtor, you can then get your further questions answered: how long the closing will take and how long the overall process lasts.