What to think about when you're buying a home Michigan

Answer these questions and be sure you're making sound financial decisions.

Local Companies

www.crowleyrealestatesolutions.com
734-444-8990
9911 shadyside
Livonia, MI
Century 21 McCoy Real Estate
231-218-7817
PO Box 456
Suttons Bay, MI
Safer Homes LLC
517-639-3935
919 Ely Rd
Quincy, MI
Coldwell Banker
616-355-6305
466 E. 16th st
Holland, MI
Tom Frame - Kalvan Realty
(269) 580-2259
226 Monroe Street
Bangor, MI
Coldwell Banker Woodland Schmidt
616-355-6305
466 E. 16th st.
Holland, MI
Tomie Raines Inc
517-242-1897
1400 Abbott Rd
East Lansing, MI
Turning Point Buyers Realty
616-990-0004
Please call for a personal appointment
Grand Rapids, MI
Re/Max New trend
248-988-8888 X 223
122 Concord Road
Bloomfield Hills, MI
Kathy Toth & Team Keller Williams Realty
734-669-0337
2144 S. State St.
Ann Arbor, MI

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Buying a home is a serious financial undertaking and it is important that you know what you’re getting yourself into. Ask yourself some important questions so that you can make the smartest financial move.

 

How much can I afford?

There is not a set formula for how much you should spend on a home. Many experts indicate that you shouldn’t spend more than two and half times your total yearly income. Others suggest that no more than thirty-five percent of your total monthly income be spent on your living expenses, including utilities. Talk to your lender and devise a reasonable monthly budget so that you can determine for yourself how much you can truly afford to spend.

 

How large should my down payment be?

First, you will need to find out the minimum down payment required by your lender. If your lender does not require a 20 percent down payment you will probably be required to pay private mortgage insurance (PMI) if you put less than 20 percent down. There are some options you can look into, such as a piggyback loan (also known as an 80-10-10 loan), that can be used to avoid paying PMI even if you don’t have a large down payment. Also keep in mind that the larger your down payment is, the lower your monthly payment will be. Think about your savings, your budget, your lender’s requirements and your loan options when making a decision about your down payment.

 

What kind of mortgage should I get?

It is important that you educate yourself on the different kinds of mortgage products before you buy a home. Different products have different terms, requirements, and interest rates. For instance, a fixed-rate mortgage keeps a constant interest rate for the life of the loan, while an adjustable-rate mortgage (ARM), has an interest rate that changes periodically according to general interest rates. When it comes to buying a home, do your research and make sure you’re getting the best mortgage you can.


Published on January 12, 2007

Read full article at realestate.com

Featured Local Company

www.crowleyrealestatesolutions.com

734-444-8990
9911 shadyside
Livonia, MI

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