Here is what any Grand Rapids real estate first time home buyer needs to do to be ready to buy their first home in Grand Rapids!

1. GET YOUR CREDIT IN ORDER

The first step toward buying your first home takes place months before walking into your lender’s office. It’s crucial to check your credit score at least three to six months ahead of your mortgage application.  You can request a free copy of the report from each of the three credit bureaus (Experian, TransUnion and Equifax) at many different web sites.

2. SET UP A MEETING WITH AT LEAST ONE LENDER

The next step is to set up at least one or two meetings with a local lender and get yourself pre-approved for a certain dollar amount. There are also other costs involved with buying a home, so also get a good-faith estimate from each lender you speak to, because there is more to a lender than his or her interest rate.

3.  BE PREPARED FOR THE DOWN PAYMENT

Now starts the money talk. You have to be ready for the costs of the down payment and closing costs.  It used to be the norm to put 20 percent down, but with the market in its current state of flux, many first-time homebuyers are finding ways to pay just 3 to 5 percent of the total cost upfront. Federal Housing Act (FHA) loans increasingly have become a popular option for first-time buyers. These competitively low-interest loans are ideal for buyers with less than perfect credit, and because the Department of Housing and Urban Development (HUD) minimizes the risk of default for lenders on these loans, borrowers are only required to put down 3.5 percent of the cost–a far cry from the traditional 20 percent down payment.  Still, there are advantages to paying more at the start. A larger down payment ultimately means smaller monthly bills down the line. Also, if you purchase a conventional loan, paying 20 percent or more upfront will eliminate the need to pay Private Mortgage Insurance (PMI) charges. PMI is insurance for your lender that can be paid upfront or in monthly installments, and is designed to offset your lender’s risk in the case that you’ve paid less than 20 percent on your home. It can cost around $55 a month per $100,000 financed. While it’s important to note that FHA loans also carry mortgage insurance with a down payment of under 20 percent, their low barriers to own still make them a good choice for first-time buyers.

4. FINDING A KNOWLEDGABLE REAL ESTATE AGENT

Finding the perfect home can have a lot to do with finding a compatible real estate agent, especially in today’s evolving mortgage landscape. “The person you choose will quarterback the whole process for you,” he explains. It’s crucial to be in contact with an agent before starting the home search, “because you might be looking at x when all you can afford is y.” First-time home buyers should make it clear what features they’re looking for and how much they’re willing to spend.

There are, however, certain questions that Fair Housing laws prohibit agents from answering, such as where to find religious centers in the area, the quality of the school systems, and crime rates. Be proactive in speaking with members of the community and inquire about the issues that matter most to you. For parents, search public sex offender registries, which can be found online, to see if there are high-risk areas in the neighborhood. In most states, agents must disclose whether violent crimes occurred on a property within a set number of years, but not so with suicides — find your comfort level and do your research.

When making an offer, make sure your agent pulls comps that have sold in the last year for that particular area. That will help you decide what the home should sell for and where to write your offer.

At signing, the buyer should demand that the contract be contingent on an objective appraisal of the house. Look into the history of the home and make sure there aren’t any liens against the property. You should be able to negotiate with the seller to make any necessary repairs to the house before closing on the deal.

Contingencies vary by state, but you should certainly inspect the home for possible lead paint, radon, and structural issues. Depending on which contingencies your state recognizes, these flaws can provide grounds to cancel the contract without penalty, and get back the earnest money deposit you put down at the start of negotiations.

5. CLOSING THE DEAL

The whole process, from start to finish should take you about 2-4 months. Once a contract has been written, the closing process should take about 30-45 days.

Now it’s time to move and enjoy your first home.

The Grand Rapids real estate market is on the move!!!!  The flowers are blooming…the families are out and the weather is warming up. What does all of that mean for the Grand Rapids real estate market….”buying season is here”!  I have spoken to many of my fellow agents at both our Keller Williams Grand Rapids office as well as other Grand Rapids real estate agents across the city and everyone is busy busy busy!!!  Buyers and sellers are very active this spring and so it is time to get involved in the Grand Rapids real estate market.  According to the Grand Rapids real estate board, sales are up for the month of April and inventory is still on a decline compared to 2010.  What does that mean to you as a seller…it means  get your home priced to sell,  get your home ready for buyers, put out some flowers, get your lawn greened up, get rid of the weeds, spruce up your landscaping, paint those tired walls and have your home in move in condition. What does it mean if you are a buyer…it means get your financial situation ready for a purchase. Talk to your local lending institution and get pre-approved. Talk to your Grand rapids real estate agent and get out there and start looking for your new home in the Grand Rapids area. Interest rates are still very attractive and there are very good deals in the market, so now is the time to buy.  This is still one of the best times you will ever see to buy a home. Home prices are still very attractive, interest rates are still very attractive and there are many choices out there to choose from.

There is a very good article in today’s Grand Rapids press that explains how to sell your Grand Rapids real estate market home. Cami Reister explains along with a few Grand Rapids real estate agents, that there is a process that Grand Rapids home sellers most go through to get there home sold.

As I have stated before, we are at the lowest home inventories in Grand Rapids since 2005. Grand Rapids home values have started to creep up. But to sell your home, you have to come to the realization of a few things:

1. Your home has to be ready to show at all times.

2. Have your home in move -in condition….your competition does.

3. Lower the price to sell. Yes, you will loose some hard earned equity….but you will more than make up that deficit when you buy your new and more expensive home.

4. Good offers still have to get through financing and appraisal.

5. Above all, “listen to your Grand Rapids real estate agent.”

Click here to see the entire article.

The Grand Rapids real estate market is ready for Spring and here is why.

1. The Grand Rapids Real Estate Board is reporting the lowest inventory of homes since 2005.  That is great news for sellers, as they try to sell their home and  buy a new home. As the Grand Rapids real estate market inventory comes down, prices will go up. This not only will help the Grand Rapids real estate market, but will also help help the Grand Rapids economy in general.

2. Interest rates are still very attractive and still near all time lows. This still makes buying a home  in Grand Rapids very affordable.  Remember, for every percentage point that interest rates go up, it is basically like paying an extra 10% for the home you are interested in purchasing.

3. Many Grand Rapids home sellers have been listed for more than a year and sometimes for more than 2 years. They are ready to deal…which makes buying more attractive.

4. With the economy starting to recover, people are starting to feel better about themselves. This then makes buyers and sellers more apt to get out into the Grand Rapids real estate market and get the Grand Rapids home buying or selling process underway.

5. Grand Rapids real estate has been stagnate or in a decline for 4 years plus. To hear that the Grand rapids real estate market is starting to turn around is good news for everyone…..so buyers, get out there and buy. Sellers, get your home priced right, so you can then be one of those Grand Rapids buyers.

6. Springtime is here. The next 5 months are the busiest in Grand Rapids real estate. You want to be priced right if you are a seller and you want to take advantage of the interest rates and great deals if you are a buyer. So contact your Grand rapids real estate agent and start to make it happen.

Buying  or selling a house in the Grand Rapids real estate market is one of the most important decisions you will make in your life,  so don’t you think you should have the “right Grand Rapids  realtor’ to help you in that decision? If you were going to invest your life savings into the stock market, wouldn’t you spend some time and find what you thought would be the “right investment advisor ” to help you make those decisions? If you were in a court battle , don’t you think you would want the ‘right lawyer” that specializes in your type of legal matter.  Well, the same thing goes for buying or selling a home in Grand Rapids.  I will just go through a few of the reasons why you want the “right realtor’ for your home buying or selling needs.

You want a realtor that sells Grand Rapids real estate for a living, not part time. It is important to find a realtor that is the “main bread winner” in the family. The agent  needs to be  hungry and needs to be a provider  for his or her family.

There are many Grand Rapids area realtors out there that help buyers and sellers in the real estate business on a part time basis or do it between jobs to help subsidize their income. They are not in it for the long term, they are in it to make a quick buck. You want someone that has your long-term lifetime goals in mind. That realtor wants you to come back in the next 5-7 years to buy or sell their next home. Or, hopefully, they will be very happy with their experience with their Grand Rapids real estate agent and will refer that agent to their family and friends. Part time or short-term realtor does not have those long-term goals on their minds. All they are thinking about is $$$$, not the needs of their client.

You want a realtor that has knowledge of the Grand Rapids real estate market. Hopefully, you can find someone that has been a lifelong resident, or a longtime resident of the Grand Rapids metropolitan area. That Grand Rapids agent should carry a great deal of knowledge about Grand Rapids area schools, pricing, market, drive times, and other important things that a newcomer to the Grand Rapids area may have trouble finding out. These are very important things to have in your pocket when looking to buy or sell your next home.

You want a realtor that has a strong personal website. Over 88% of all buyers and sellers today are on the internet everyday looking for their next home. If your realtor is not positioned on the internet with a website that feeds to all the national sites, then he is not the realtor for you. His or her website should have their listings on their site, a way to search for homes in the area, information about the area both Grand Rapids  real estate and other  surrounding areas. But, most of all, it should have some pertinent information about his or hers own person. Buyers and sellers should be able to go that site and get a feel for who the realtor is and what his or hers standards are when helping a buyer or seller in the Grand Rapids real estate market.

You want a realtor that works for a “national or international” broker. If you are working with a “local” broker, you again are missing out on the national relocation services that a national firm can offer you as a seller  or buyer. If you are planning on moving out of the area, with a national broker, like Keller Williams, they can refer you to another office of that same firm that has an office in your next destination and offer you the same services that you had here.

The last thing to look for when choosing the right realtor is to choose a realtor that will have time for you….personally. There are many agents that have many other seller’s agents and buyer’s agents working for them. The problem with that scenario is that when you think you have hired that agent that other people talk about, you never get a chance to work with him or her. You may work with someone else from that team or group, and that isn’t what you signed up for.  So, when interviewing Grand Rapids real estate agents, make sure you find out “who” is going to be your agent.

Hopefully, these are all helpful hints for choosing the “right realtor” in Grand Rapids for you when are buying or selling your next home.

In a recent article in the Grand Rapids Press,  according to the Julie Rietberg of the Grand Rapids real estate Board, the inventory of homes for sale in the Grand Rapids real estate market is the lowest since 2005. That is good news for both buyers and sellers. When inventory drops, prices go up and that helps everyone in this economy.  We should see this steady decline in inventory over the next few years as we slowly climb out of this housing mess that we have been in for 3-4 years now.  Take a look at this article and you will see a little more of what the housing market is doing in Grand Rapids. Click here.

Tom,

Thank you so much for all of your help in finding the right house in Rockford for me.  It took a lot longer than both of us would liked, but I am glad it did, because we found the perfect one.  I really appreciate all of your hard work and dedication, it shows you are a true real estate professional.  It did not matter if it was Saturday afternoon or a Wednesday night; you were there to show me the next house.  Every step in the real estate buying process went very smoothly– inspections and mortgage and closing were a non - hassle with your help and direction.  Thanks again for all of your help!  I will pass your name around to whom ever need a real estate agent in Grand Rapids.

Andrew –

Check out this article in the Grand Rapids Press as well as Mlive.com. It speaks about the outlook for Grand Rapids and all of Western Michigan in regard to the real estate outlook for 2011. This article addresses interest rates and the fact that they are still very attractive, open houses, why you should buy a home now, why sell your home now, and how the Grand Rapids real estate market is reacting to the economy.  The article was written by Cami Reister.  Click here to view the article:

I found this article in the Star Tribune, written by Jim Buchita in Minneapolis , Minnesota. This is an interesting way to deal with buyers in the Grand Rapids real estate market  who are afraid to write an offer for one reason or another. This method could help both buyers and sellers come together on a deal.  Click here to see the article:

Check out this new web site, Viewmylisting.com. This is another great site to find real estate for sale in Grand Rapids.