CLIENT LOG IN

Margo Borkin

Persistent Perserverance, Consistent Results

248-419-3160
Cell: 248-318-4776
Fax: 248-419-0930
margo@movewithmargo.com
  • Menu
  • Home
  • About
    • About Margo Borkin
    • Client Reviews
    • Margo Vs The Market
    • Professional Resume
  • Communities
    • Berkley
    • Beverly Hills
    • Bingham Farms
    • Birmingham
    • Bloomfield Hills
    • Bloomfield Township
    • Commerce Township
    • Farmigton
    • Farmington Hills
    • Ferndale
    • Franklin
    • Huntington Woods
    • Keego Harbor
    • Novi
    • Oak Park
    • Orchard Lake
    • Royal Oak
    • Southfield
    • Sylvan Lake
    • Walled Lake
    • Waterford
    • West Bloomfield
    • White Lake
    • Wixom
    • Wolverine Lake
  • Property Search
    • Address Search
    • Basic Search
    • Advanced Search
    • Map Search
  • Home Buyers
  • Home Sellers
  • Blog
  • Contact

Buying a Home in Michigan FAQs

 

Our Top First Time Home Buyer FAQ’s Answered

Mortgage-Related

How do I know if it’s time to buy instead of rent?

If you know where you want to live & have a steady and secure income, then it’s a great time to invest in property.

How much do I need to save up for a down payment?

20% Will get you the best rate and terms, but there are loans available as low as 3% down. A mortgage lender can tell you what types of loans you qualify for. 

How do I know if I qualify for a loan and how much I can afford?

Contact a mortgage lender to get pre-approval for a loan. The lender will ask you some basic questions about your income and debts and can tell you what amount you can be approved for, and how much your mortgage payments will be.

What does the lender need from me to give me a loan?

Usually, you are asked to provide your last two tax returns to show proof of income. You should also provide recent bank and credit card statements and proof of your current pay rate. You will also be asked for your social security number so they can run a credit check.

What’s the difference between pre-approved and pre-qualified?

While often used interchangeably, these terms don’t mean the same thing. Pre-qualification is an estimate of what you may be approved for based only on the verbal information you provide. Pre-approval means the lender has verified your income and debt information and run a credit check.

How do I know which mortgage option is right for me?

Your mortgage lender is the best person to advise you on this question. Their products and qualifications change from time to time, so they would know best what products are available to meet your needs.

Searching for a Home

What should I do when I see a house online that I like?

Call your buyer’s agent: the agent you are working with to find your home. It’s best that you work with one real estate agent throughout your search because that person learns what you like and dislike and will invest a lot of time vetting properties for you. That person also represents your best interests only. When you call the agent advertising the home, you are dealing with the seller’s agent, so, while they can assist you, they are also trying to get the best price for the seller.

Can you show me a house if it’s not your listing?

Absolutely. As a buyer’s agent, I can show you any house listed in our MLS system, and I will contact FSBO sellers on your behalf. As mentioned above, working with me as your buyer’s agent ensures that your interests are protected.

How do we write an offer?

When you find the property you want to make an offer on, I will run a Comparative Market Analysis (CMA) to help you determine a fair offer amount. I will also guide you through the additional terms of the contract, such as the escrow amount, closing date, and any additional terms you want to be added to the offer. I will write the offer on a contract form and submit it to the seller’s agent.

What if I want to back out of a contract?

You always have the right to back out of the purchase, but you may lose your escrow deposit. If the contract is contingent on a property inspection, you usually have the right to cancel for any reason during the inspection period. Once the inspection period has passed, you cannot back out and keep your deposit unless the seller agrees, or an additional term has not been met.

What happens if there are other offers on the house I love?

If a seller receives multiple offers on their home, usually their agent will inform the buyer’s that multiple offers have been received and the buyers have another opportunity to alter their original offer to present their “highest and best” offer. Keep in mind that many factors may influence the seller in addition to the offer price, such as the down payment amount, closing date, and inspection terms.

What happens when my offer gets accepted?

Once both parties have agreed on all terms and signed the contract,  you’ll schedule the home inspection. Your lender will receive a copy of the contract and will begin processing your mortgage application.

We’re Under Contract!

What does “under contract” mean?

Under contract means that all parties have agreed on terms, have signed the contract, and the signed contract has been delivered to both buyer and seller. Payment of the escrow deposit is expected but is not a requirement to make a binding contract.

What is escrow?

The escrow money, earnest money deposit, or good faith deposit is money that is offered with an offer, or as soon as an offer is accepted, to show the seller that you are serious about moving forward with the purchase of the home. Because you forfeit this deposit if you back out of the purchase for any reason not allowed for in the contract, the larger the escrow deposit, the more seriously your offer is taken.

Do I need an inspection?

We always recommend that you have a home inspection done. In the scheme of things, paying a few hundred dollars to have peace of mind that there are no hidden dangers or problems is well worth the money.

How much are inspections?

The cost of the home inspection depends on the size of the house and additional inspections requested, such as swimming pool, septic tank, termites, insurance four-point (HVAC, plumbing, roof, and electrical,) wind mitigation, and radon. An average home inspection, without additional inspections, is about $300.

What if my loan doesn’t get approved?

If you have gone through the pre-approval process and have been forthcoming with all the information requested by your lender, it’s unlikely you will be turned down, but it does happen. Make sure you do not change jobs, purchase big-ticket items on credit, take out a car or boat loan, or open any other new credit accounts while your mortgage is being processed. If your loan does fall through, talk with your lender about changing to a different loan type.

When can I start moving?

When you have the keys! When you are financing your purchase, it takes four to six weeks for your loan to be processed. Once the lender gives the all-clear, closing is scheduled. You will sign your loan documents and both parties will sign documents transferring ownership to you. Unless other arrangements have been agreed upon by both parties, the sellers should have completely vacated the home when they sign the closing papers. You can have your belongings ready to move, and a moving company scheduled before you go to closing. At closing, you will receive the documentation you need to provide utility companies with proof of your new residence.

Download my FREE buyers guide to real estate HERE packed with printable, questions to ask when interviewing mortgage lenders, and more!

 

 

Posted in: First Time Home Buyers, For Buyers

© Margo Borkin Real Estate 2010

Post navigation

« Taking Advantage of Homebuying Affordability in Today’s Market
Best Time to Sell? When Competition Is at an All-Time Low »
Comments Box SVG iconsUsed for the like, share, comment, and reaction icons

Margo Borkin Real Estate

10 hours ago

Margo Borkin Real Estate

You’d think with more time at home I’d be motivated to stay on top of housework. If only it were that easy, huh? ⁣
⁣
The good news is there’s no need for any of us to be in a constant cleaning frenzy. Here's what Good Housekeeping recommends be done weekly:⁣
⁣
• Change sheets⁣
• Dust surfaces and furniture⁣
• Vacuum and mop floors⁣
ª Wash towels⁣
ª Clean bathrooms⁣
• Toss expired food⁣
⁣
Owning a home is a lot of work but totally worth it! If you’re looking to buy and need a realtor you can trust like a friend, send me a message. I’d love to connect.
... See MoreSee Less

You’d think with more time at home I’d be motivated to stay on top of housework. If only it were that easy, huh? ⁣
⁣
The good news is there’s no need for any of us to be in a constant cleaning frenzy. Heres what Good Housekeeping recommends be done weekly:⁣
⁣
• Change sheets⁣
• Dust surfaces and furniture⁣
• Vacuum and mop floors⁣
ª Wash towels⁣
ª Clean bathrooms⁣
• Toss expired food⁣
⁣
Owning a home is a lot of work but totally worth it! If you’re looking to buy and need a realtor you can trust like a friend, send me a message. I’d love to connect.
View on Facebook
·Share

Share on FacebookShare on TwitterShare on Linked InShare by Email

View Comments
  • Likes: 0
  • Shares: 1
  • Comments: 0

Comment on Facebook

Margo Borkin Real Estate

2 weeks ago

Margo Borkin Real Estate

Just sold in #Greenpointe #westbloomfield

Looking to make a move in 2021? You know what to do #movewithmargo
... See MoreSee Less

Just sold in #Greenpointe #WestBloomfield 

Looking to make a move in 2021? You know what to do #movewithmargo
View on Facebook
·Share

Share on FacebookShare on TwitterShare on Linked InShare by Email

View Comments
  • Likes: 1
  • Shares: 0
  • Comments: 0

Comment on Facebook

Margo Borkin Real Estate

2 weeks ago

Margo Borkin Real Estate

HAPPY NEW YEAR!
I know you’re anxious to give 2020 one final heave-ho way back into last year. (Seriously, me too.) But before zooming into 2021, let’s not miss the chance to reflect on the extraordinary year we’ve just lived through. Pretty sure we’ll never see another one like it!⁣
⁣
(This is where we pause and reflect). ⁣
⁣
Now that that's done, it’s time to stare down 2021 and get serious about making it the BEST year ever! What’s on your mind as you think about the year ahead? ⁣
⁣
• A goal to set or settle?⁣
• A habit to nix or nurture?⁣
• A hobby to ignore or explore?⁣
• A relationship to mend or end?⁣
• A skill to meet or master?⁣
• A house BUY or SELL? (I can help with that!)⁣
⁣
Whatever you aspire to this year, go for it! There’s no time like NOW to take hold of your dreams.
... See MoreSee Less

HAPPY NEW YEAR!
I know you’re anxious to give 2020 one final heave-ho way back into last year. (Seriously, me too.) But before zooming into 2021, let’s not miss the chance to reflect on the extraordinary year we’ve just lived through. Pretty sure we’ll never see another one like it!⁣
⁣
(This is where we pause and reflect). ⁣
⁣
Now that thats done, it’s time to stare down 2021 and get serious about making it the BEST year ever! What’s on your mind as you think about the year ahead? ⁣
⁣
• A goal to set or settle?⁣
• A habit to nix or nurture?⁣
• A hobby to ignore or explore?⁣
• A relationship to mend or end?⁣
• A skill to meet or master?⁣
• A house BUY or SELL? (I can help with that!)⁣
⁣
Whatever you aspire to this year, go for it! There’s no time like NOW to take hold of your dreams.
View on Facebook
·Share

Share on FacebookShare on TwitterShare on Linked InShare by Email

View Comments
  • Likes: 2
  • Shares: 0
  • Comments: 0

Comment on Facebook

Load more

Blog by Category

  • Baby Boomers (24)
  • Buying Myths (79)
  • Demographics (35)
  • Distressed Properties (7)
  • Down Payments (47)
  • First Time Home Buyers (522)
  • For Agents (1)
  • For Buyers (741)
  • For Sellers (602)
  • Foreclosures (10)
  • FSBOs (27)
  • Gen Z (5)
  • Generation X (15)
  • Holidays (2)
  • Home Decor (1)
  • Home Maintenance (1)
  • Housing Market Updates (390)
  • Infographics (162)
  • Interest Rates (116)
  • Local Market Updates (3)
  • Luxury Market (8)
  • Millennials (72)
  • Move-Up Buyers (569)
  • New Construction (19)
  • Pricing (156)
  • Rent vs. Buy (81)
  • Selling Myths (31)
  • Senior Market (14)
  • Short Sales (1)
  • Time-sensitive (5)
  • Uncategorized (13)
  • Weekend Wanderings (1)

Recent Posts

  • Weekly Cleaning Guide – What Should You Be Cleaning
  • Things to Avoid after Applying for a Mortgage [INFOGRAPHIC]
  • Why Right Now May Be the Time to Sell Your House
  • Will Forbearance Plans Lead to a Tsunami of Foreclosures?
  • 4 Reasons People Are Buying Homes in 2021