Lansing, MI Mortgage

How Long Does it Take to Close on a New Home Purchase?

Often, the process takes only three to four weeks. That said, we have to acknowledge that today there are factors that could cause the process to take much longer.

Let’s look at recent proof for this reality.

Home buyers who accepted a deal by April 30th had 60 days to close their deals by June 30th to qualify them for the home-buyer stimulus credit. If deals can be closed in three to four weeks, then why did Congress extend the home-buyer-credit closing date past the 60th day? There are a number of factors that made it necessary…

Successful Home Ownership V – Negotiating with Maturity

Negotiating with maturity does not mean that you cannot “low ball” a seller in certain circumstances, but it does mean realizing what it is you’re doing.

If a seller has a home listed for $200,000 and you offer $140,000 – you have just low balled the seller’s number. There is nothing wrong with that, you just need to think it through ahead of time.

The seller has a few options, and a mature negotiator has his response to each one…

Successful Home Ownership IV – Do Your Market Research

The Case Shiller Index gives a national and regional home prices overview, and indications are that now is an excellent time to buy a home. That does not mean that someone can’t pay too much for a home in today’s market.

When you’ve decided about the area in which you would like to live, set up a meeting with a full-time Realtor, preferably contracting with a Buyer’s Agent, one that you were referred to or already know and trust.

When you’re looking at a particular home, make sure you obtain…

Successful Home Ownership III – When Does it Make Sense to Take the Plunge?

It’s easy to print the “regs” and find out from FHA or VA or Fannie Mae just what it takes for them to approve a loan for you. The rules and guidelines are very detailed but they’re understandable.

But did you know that I can approve a person whose gross (before taxes and all other withholdings) income is $60,000 per year for a $2500 house payment under the right list of conditions? That’s half the borrower’s income. The before tax income! In this case the person would have approximately $1200 left every month to pay all utilities, car insurance, life insurance, groceries, Christmas presents, etc. Not sure how this make sense, but FHA will do it – and with only 3.5% down.

Here are some helpful benchmarks to consider before trying to buy a home or make a move up into a more expensive home…

Successful Home Ownership II – Know the Real Cost of Owning that Home

From time to time we see a home on the market that is completely ‘gutted’ and listed for sale by a bank. As we look into it, we find that a different bank, not long before, had foreclosed on a different borrower. It is very likely that the buyer who purchased it from the first bank did not add things up before they got into the deal. They got half way through the remodel project and were unable to finish it. It’s likely they didn’t know what they were getting into until it was too late.

By doing some simple number crunching in five key areas, you can avoid getting into a scenario like this…

Successful Home Ownership I – “Qualify” vs. “Afford”

In my many appointments with hopeful homeowners to be and with those hoping to make a transition to another home or purchase a second home, I often draw a simple distinction between two words—qualify and afford.

The word qualify is my word. As the lender I need to make sure that I can “qualify” the borrower for the loan and ultimately the home that she wants.

The word afford is the customer’s word and is often ignored in the lending office. This is the process whereby the potential borrower determines what she is able to pay each month based on her income and other bills and lifestyle habits.

Let me give you an example of the conflict…