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
Showing posts with label saving for a down payment. Show all posts
Showing posts with label saving for a down payment. Show all posts
Friday, March 7, 2008
Wednesday, January 2, 2008
Buying a home to keep
Buying a home to keep (edit/delete)
Over the years I have had people come to me and buy homes that I know that can't afford. I have asked them if they were sure they wanted to spend that kind of money.
There are many issues with this problem. If you as a buyer had a Realtor or mortgage person tell you that they think you are over buying... would you listen? As a Realtor many clients don't take our advice. Many people buy with emotion. We see over and over people buy homes we would never buy. And that is the point. We the Realtor are not going to live there you are. It is your choice to make, it's not our choice. We can subtly tell you that we think it is a bad idea. I can't tell you how many times clients have not listened to my advice. Many do listen, but there are many that never hear.
Buyers and sellers have what they want in their head and most times we can't sway them. Shoot... their parents can't tell them, their spouse can't change their mind. Do you think what we say, sways them?
But it is more important than ever to this generation of buyers, 2008 buyers, that they step back and figure out what they can afford to pay a month before they see a mortgage person or a real estate person. Better yet. If their house payment with taxes and insurance is going to be $2000 and they are paying $1000 a month in rent. Then they should try to live 6 -12 months putting the extra $1000 away. And not spending it for anything. That way they can find out if they can live comfortably with a $2000 payment. Plus they would have a nice down-payment or rainy day fund.
If you need more mortgage information or Michigan real estate information go to my website www.russravary.com You can search thousand of Michigan Houses for sale free on my site without giving your name or any personal information.
Over the years I have had people come to me and buy homes that I know that can't afford. I have asked them if they were sure they wanted to spend that kind of money.
There are many issues with this problem. If you as a buyer had a Realtor or mortgage person tell you that they think you are over buying... would you listen? As a Realtor many clients don't take our advice. Many people buy with emotion. We see over and over people buy homes we would never buy. And that is the point. We the Realtor are not going to live there you are. It is your choice to make, it's not our choice. We can subtly tell you that we think it is a bad idea. I can't tell you how many times clients have not listened to my advice. Many do listen, but there are many that never hear.
Buyers and sellers have what they want in their head and most times we can't sway them. Shoot... their parents can't tell them, their spouse can't change their mind. Do you think what we say, sways them?
But it is more important than ever to this generation of buyers, 2008 buyers, that they step back and figure out what they can afford to pay a month before they see a mortgage person or a real estate person. Better yet. If their house payment with taxes and insurance is going to be $2000 and they are paying $1000 a month in rent. Then they should try to live 6 -12 months putting the extra $1000 away. And not spending it for anything. That way they can find out if they can live comfortably with a $2000 payment. Plus they would have a nice down-payment or rainy day fund.
If you need more mortgage information or Michigan real estate information go to my website www.russravary.com You can search thousand of Michigan Houses for sale free on my site without giving your name or any personal information.
Subscribe to:
Posts (Atom)