Banks are starting to require more for down payment when buying a Michigan Home. Your choices are going to be a FHA loan or you will have to put down 5 -10% of the sales price.
Now is the time to start saving for your new home. Too many people have over spent and over bought in homes. But you can now get a great deal on a home because home prices are so low and Michigan interest rates are still in the low 6% range for a Michigan 30 year fixed mortgage.
What I tell people to do is to start saving. If you are going to buy a home and think you can afford a $1100 a month payment, try it out. By try it out I mean save $1100 a month if you are living at home and have no rent. If you live at home put $1100 a month into a savings account. Can you live on the remainder of your check comfortably?
Let's say you want to have a $2300 a month mortgage payment and you are renting an apartment right now for $1200 a month. Try saving an extra $1100 a month. $2300 future house payment - 1200 rent payment = $1100. That $1100 is what you would have to come up with each month to make a house payment. It is better to try to do it before hand then find out later you can't afford it.
Many of my clients have followed my advice and done this. They sometimes realize they can't afford to buy that big of a house. The ones that have done it have commented to me that they were glad I pushed them to do it for 2 reasons. One was that they had a bigger down payment and the second was that they realized what that new house payment would do to their lifestyle.
For more buyers tips go to my website www.RussRAvary.com Search over 70,000 Michigan homes for sale. Southeastern Michigan's No.#1 informational real estate website
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