Metro Detroit Area Home Buyers FAQs
Answering Your Metro Detroit Area Home Buying Questions
Whether you’re a first-time home buyer or an experienced real estate investor in the Metro Detroit Area, there are a lot of questions that come along with buying a home. It's vital to be prepared and informed during your real estate journey, which is why the Coldwell Banker Preferred Realtors are here to provide you with some answers. Browse our Buyer FAQs to get to know some of the basics, and give our team a call when you're ready to get started.
1. Where Should I Start the Process?
- Understanding your finances is a key part in kicking off the buying process. Take some time to look over your accounts, and set a budget to figure out what you will be able to afford for a down payment. Use our handy mortgage calculator to see what a monthly mortgage payment might look like for you.
- Once you've figured out your price range, you should start learn a little more about the area, and narrow down your search to a few neighborhoods.
2. How Do I Know What to Look for in a Home?
- This is up to you! Do you want to be close to work? Is a large backyard a must for you? What sort of square footage are you looking for? Take some time to consider your wants and needs.
- Browse our Metro Detroit featured listings, or start searching homes by amenities and features. By narrowing down your choices, you'll save yourself valuable time in the buying process.
3. Why Should I Use a Realtor?
- A good Realtor can guide you through the financial and legal complexities of the Detroit area real estate process and help answer all of your questions along the way. Since we're also Detroit area experts, we can provide insight into the many neighborhoods and communities around the city, ensuring that you find the best fit.
- A Realtor can also help you find the right price range for your income and finances, so you don't fall in love with a home outside of your budget. We'll also explain the pros and cons of different types of mortgages.
- No matter what, a trusted Realtor will always be around to answer your questions and guide you through the complicated jargon.
4. Where and How Can I Get a Loan?
- Mortgage loans are typically available through banks, credit unions, private mortgage companies, and government state lenders.
- Your Realtor can help connect you with lenders around the area, and you can also shop for lenders on your own. Make sure you take some time to search around and compare rates to find the best deal for your needs.
5. What if I Have Bad Credit or No Down Payment?
- Don't worry, there are still a few resources you can look into to find the finances you need—in fact, you might qualify for a federal mortgage program or local home buying assistance program.
- The Federal Housing Administration (FHA) helps home buyers by offering insured loans. This means that if the buyer defaults, the lender will still get their money. Insured loans encourage lenders to work with more buyers regardless of their credit or available down payment.
- Many state and local governments offer additional programs for buyers who meet various criteria or are buying within individual communities.
- The Department of Housing and Urban Development (HUD) also offers many assistance programs to home buyers.
6. Once I Find My Home, What Will I Have to Pay Up Front?
- Earnest money: Earnest money is sort of like the "security deposit" you pay when you submit your offer. It shows the seller that you are serious, and after your offer is accepted, it's applied to your down payment or closing costs.
- Down Payment: This is a percentage of the cost of your home and depends on your loan; if you need assistance, government programs can help you decrease this amount.
- Closing Costs: These are typically low for buyers and represent the fees associated with paperwork and lender charges.
7. What Other Costs Will I Pay?
- Other costs can include utilities, HOA or condo fees, and property taxes—which are typically included in your mortgage payment.
- Ask your Realtor about additional fees associated with your particular home, community, or neighborhood.
I Still Have Questions!
We're here to help. Contact us today, and we can answer any of your home buying questions, whether it's finding homes for sale and real estate in the Detroit Metro area or exploring some of the many unique communities.
Want more information? Browse our resources to learn more about buying a home in the Metro Detroit area.