Interest in buying Michigan homes is up, but how does the process work?
Lower mortgage interest rates, rising home prices, a better economy, and the recent Brexit flap are all increasing the attractiveness of buying a home in Michigan. So whether you are a first time home buyer, a new real estate investor, or overseas investor, how does the process of purchasing a home in MI actually work?
1. Decide What You Are Looking For
Start the process by taking a little time to identify what you are looking for. What home features are most important to you? Which can you live without? How much cash do you have for buying and closing costs? If you’ll need a mortgage loan; how much do you qualify for? How will that amount, interest rates, and payments dictate what you can afford?
2. Shop For Homes
Once you have a clear picture of what you can afford, what you want in a home, and what you don’t – then you can begin shopping for homes. You may do this by driving your ideal neighborhoods and looking for signs, looking on the internet, or working with a professional real estate agent. The better you have done at step one, and in choosing a Michigan Realtor the faster the shopping experience can be. Just be sure to move fast once you’ve found a home you love.
3. Make An Offer
If you have a real estate attorney or real estate agent they will help you create your purchase offer. If you don’t have either of these then your Michigan title insurance company may have legal help on hand to help with contracts. This document will lay out your purchase price, deposit, rights to inspection, and closing date, as well as any clauses which may allow you to withdraw from the contract.
4. Due Diligence
It isn’t uncommon for there to be a round or two of negotiations after your first offer. Once you’ve got a signed agreement, then it is time to put everything else into play. This includes officially applying for any financing you’ll need, home inspections, title searches, obtaining insurances, etc. Once all this information is cleared by your mortgage lender and the title company the transaction will be scheduled for closing.
Real estate closings (or ‘completions’) are much easier than they used to be. You may close at a local Michigan title company office, at your current home or office, or if you are abroad then by email and mail. Be sure to be clear about your schedule with your closing coordinator and any factors which could cause a delay i.e. being in a foreign country with poor internet or mail service. The closing documents are extremely time sensitive. Once everyone has signed and your funds are wired to the closing agent you will receive your keys and copy of your deed to the property.
Then get on with enjoying your new home or investment property in Michigan!