It might come as a surprise, but buying Northville real estate or even more expensive properties and nicer homes still requires some interaction from a contractor for most families.  Even if you find a dream home there may be work that needs to be done to either update old fixtures, get a home up to current codes, fix cosmetic damage or just make local Metro-Detroit real estate more comfortable for you and your family.

That means on top of finding the right buyer’s agent and the right Michigan mortgage lender, you need to locate the right contractor.  Depending on your project you could spend a significant amount of money on updates, repairs and renovation so asking the right questions is key.

This is especially true if you plan on building your own home!  Here are some key things to consider, and questions to ask, in order to get the right contractor and avoid any nightmare problems.

Finding the Right Contractor for Metro-Detroit Real Estate Read the rest of this entry »

There’s a lot that goes into the purchase of a new home whether you’re trying to find your dream home among real estate in Northville, homes for sale in Royal Oak or you’re picking through foreclosures in Novi and communities like Livonia.  It’s a complex process with a lot to consider.

As you prepare to purchase your first home, here’s a list of things to keep in mind when you’re trying to make the right decision on where and when to buy.

• If interest rates climb even a little, you may not be able to afford as much house as you and your family can afford right now
• Get keen insight into just how much house you can afford by getting a pre-approval through a Michigan mortgage lender
• There have been significant drops in housing values over the last 6 years.  If you plan to stay in your home for up to 5 years then you’re extremely likely to see housing values begin to appreciate
• Remember that you can reduce your tax obligation with deductions from mortgage interest and property tax
• You can stop throwing rent out the window when you purchase a home, that means building your own wealth and not the wealth of a landlord
• If you buy a home now with a fixed-rate mortgage then your rate stays the same until your home is paid off unlike renters who may have rent increased as the economy changes.
• Some markets in Michigan are down as much as 30%, which makes it difficult to find better deals on homes than you can right now.
• Do not buy emotionally, whether it’s from fear or excitement.  Put emotions aside and consider the decision that’s best for your family in the long term.  Just don’t be afraid to finally pull the trigger when the time is right.
• Never trust your eyes when you’re looking at a home.  They can play tricks on you and keep you from seeing the flaws.  Always have a home professionally inspected before saying “yes”.
• The more money you have on hand the less you pay in the long run, the better rates you’ll see and the lower your monthly payment.  If you can, take the time to build a cash reserve before rushing in to buy a home.  You’ll always start off on the best foot.
• It’s OK if now is not the right time for you, but still talk to a Michigan mortgage lender.  They can help you create a game plan that will get you ready to buy a home sooner rather than later.
• Don’t out and start paying off old debt to make your credit look better.  Some actions that involve your credit could do more harm than good.  Talk to a Michigan mortgage lender first to analyze your situation.
• Get pre-approval first, then shop for homes.  If you start looking at homes first you’ll set yourself up for disappointment, especially if you’re looking out of your price range.
• Talk to reputable real-estate agents in your area about the real-estate climate. Do they believe prices will continue falling or do they think your area has hit bottom or will rise soon?
• Before applying to the Bank of Mom & Dad (or family and friends), note that outright cash gifts can result in big tax bills. Avoid them by structuring parental assistance as a bona fide loan with minimum interest rates set by the Internal Revenue Service. Forms for such transactions are posted at sites like Nolo.com

Ready to get more info and find out if you’re ready to buy your first home?  Contact me today at Ross Mortgage and talk to a Michigan Mortgage Lender about the next step for you and your family.

This week saw increasing uncertainty in Europe, leading to lower stock prices and strong demand for the US Treasury auctions. Ordinarily, these factors would result in improved mortgage rates, but mortgage rates ended the week nearly unchanged from last week.

In closely watched elections on Sunday, voters in France and Greece strongly favored the candidates who opposed austerity measures. The results confirmed that political opposition to austerity is strong in many countries, and there is growing disagreement about the best approach to solve Europe’s problems. In Greece, the government struggled to reach a consensus, leaving in question the future of required austerity measures. EU officials threatened to withhold their next aid payment, and the possibility that Greece could leave the European Union has increased.

The high level of uncertainty in Europe caused investors to worry about the pace of global economic growth. During the week, investors moved away from risky assets in general, sending US stock markets lower. US bond markets are normally a beneficiary of such a flight to safety, but neither Treasuries nor mortgage-backed securities (MBS) posted gains this week. With rates near record lows, investors appeared to be reluctant to purchase bonds at lower yields.

Next week, Retail Sales and CPI will be released on Tuesday. Retail Sales account for about 70% of economic activity. The Consumer Price Index (CPI) is the most closely watched monthly inflation report. CPI looks at the price change for those finished goods which are sold to consumers. Housing Starts and Industrial Production will come out on Wednesday, along with the detailed Minutes from the April 25 Fed meeting. Philly Fed, Leading Indicators, and Empire State Manufacturing will round out the schedule.

Copyright @ 2012 MBSQuoteline

Whether you’re currently a homeowner or you’re thinking about buying a home in Michigan this year, you’ve likely considered property taxes as one of the regular costs when compared to current rental pricing and your existing home situation.

Some people in Michigan ready to buy a home have been spooked out of purchasing a house in a particular neighborhood, like Royal Oak, because property tax rates “price them out” of getting a mortgage in Michigan. Read the rest of this entry »

There are a lot of homes for sale in Metro-Detroit, and as many as half of the homes for sale of the Michigan real estate markets fall under the category of a distressed property.

Distressed properties in Michigan are homes that have either gone through a foreclosure, or they are currently being marketed by the existing home owner as a Michigan short sale property.  While a foreclosure is a bank-owned or lender-owned property, a short sale in Michigan comes from a homeowner that is unable to maintain their current mortgage.

Instead of pushing the foreclosure process, the lender agrees to sell the property for less than the balance of the loan. Read the rest of this entry »

A common question I run into from clients – especially first time buyers – has to do with their credit scores and mortgage preapproval.  The question is usually phrased in some way similar to

“I’m getting ready to buy a home soon but I’m worried that if I get preapproved too early and don’t find a home before the preapproval expires, that I’ll need a new one.  Will that first preapproval damage my credit score and make a new preapproval harder to get?”

Above all else, consider that credit scoring is intended to reflect the payment and credit habits of the individual in question: in this case, it’s you.  When your Michigan mortgage lender pulls your credit, there’s a chance your score might drop a few points.

This initial pull is necessary so that your Michigan mortgage lender can help you address anything that needs to be corrected to improve your scenario before you buy.  From my experiences, it’s not uncommon to see a score that is lower than what home buyers expect.  Sometimes there were recent inquiries, or a single payment was reported as late that you weren’t aware of.

Once your Michigan mortgage lender grants the preapproval, that preapproval is good for approximately 90 days.  That gives you plenty of time to find Oakland county real estate or Wayne county real estate that suits you.  The 90 day mark may vary slightly depending on the age of your supporting documentation used to validate your preapproval.

Once approved, your credit may not need to be pulled again until after you have an actual offer ready to go out.

This is where you have to get savvy about your spending and credit habits though.  Credit scoring is accumulative;  that means if you went shopping and picked up some big ticket items or made some new credit inquiries, those are going to compound with the pull of your credit from your Michigan mortgage lender.

That can drop your score, and if a second pull is required you can expect to have to explain each of the individual credit inquiries.  The best approach is to talk to your Michigan mortgage lender now and do an initial pull of your credit.  Identify what needs to be fixed, if anything, then take corrective action.  Avoid additional spending and inquiries during this period to let you score improve.

If you’re considering buying a home in Royal Oak, Birmingham, Ann Arbor, Plymouth, Livonia or surrounding communities in between then come and talk to me – it always pays to have a local Michigan mortgage lender on your side to help you develop a game plan for moving forward.

Increased concerns about the troubles in Europe had the biggest influence on mortgage rates this week. As usual, investors reacted by shifting to relatively safer assets including US mortgage-backed securities (MBS), and mortgage rates again ended the week a little lower.

Spain has been the focus in Europe recently, but issues emerged this week from more surprising sources. The President of France is behind after the first round of voting in his bid to be reelected, and his opponent is not a supporter of austerity measures. In addition, budget talks broke down in the Netherlands after seven weeks, without an agreement on cutting spending. With weak economic data coming from nearly every euro zone country except for Germany, many people are questioning whether austerity plans are the correct remedy for the troubles in the region. Investors are reluctant to invest in the region amid the uncertainty, raising bond yields (and government borrowing costs).

In stark contrast to the Fed statement released in March, Wednesday’s Fed statement caused almost no reaction. The content was little changed from the prior statement. In recent weeks, Fed officials have repeatedly expressed that current monetary policy is appropriate for the existing economic conditions. The statement and press conference provided no reason to change the consensus view that there is a high hurdle for Fed officials to either provide additional easing or to begin tightening in the near future. Unexpected events such as sustained weakness in the labor market or severe troubles in Europe might prompt the Fed to ease further, while a surge in inflation could lead to early tightening.

The biggest economic report next week will be the important Employment data on Friday. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month. Before the employment data, the Core PCE price index, Personal Income, and Chicago PMI will be released on Monday. ISM Manufacturing and Construction Spending will be released on Tuesday. ADP Employment and Factory Orders will come out on Wednesday. ISM Services and Productivity are scheduled for Thursday.

Copyright @ 2012 MBSQuoteline

If you’re on the market to buy one of the many homes for sale in Oakland county, then the best way to get an offer accepted is to appeal to the emotions of the person selling the home.  Why?  Because that’s how sales work.  People not only buy in impulse and emotion but they sell on impulse and emotion as well.

When it comes to real estate in Oakland county, transactions typically come together – and often blow up – over emotional  hotbeds.  Granted, price is a big factor for someone selling a home in Oakland county, but if you can give the seller a reason to care about you and your family then that can put you above other offers. Read the rest of this entry »

Weaker than expected Employment data and increased concerns about Europe helped mortgage rates this week, and they ended lower than where they were before the March Employment report.

While slower employment growth is painful for the country in nearly every way, this generally bad news is actually favorable for mortgage rates. Against a consensus forecast of 200K, the economy added just 120K jobs in March. The Unemployment Rate dropped to 8.2%, the lowest level since January 2009, but the decline was due to people leaving the labor force rather than finding jobs. Average Hourly Earnings, a proxy for wage growth, increased at a 2.1% annual rate. Lower than expected job gains combined with tame wage increases helped mortgage rates move lower following the data.

European economic data released this week caused investors to question whether weaker European countries will be able to successfully grow their economies while putting in place required austerity programs. Spain has become the primary cause for concern. With the fourth largest economy in Europe, economic troubles in Spain have the potential to spread across the region. Investors reacted by selling bonds in weaker countries and shifting funds to relatively safer assets, including US mortgage-backed securities (MBS). The trend reversed somewhat on Wednesday, however, when an ECB official suggested that the ECB may start purchasing the bonds of troubled nations again.

Next week, Retail Sales will be released on Monday. Retail Sales account for about 70% of economic activity. Housing Starts and Industrial Production will come out on Tuesday. Existing Home Sales will be released on Thursday. Philly Fed, Leading Indicators and Empire State Manufacturing will round out the schedule.

Copyright @ 2012 MBSQuoteline

If you’re trying to figure out if getting a mortgage in Michigan is a smart idea right now based on your income limitations and debt obligations, there’s some good news for you right now – the weight of the monthly mortgage bill has never been lighter.  That means buying one of the many houses for sale in Oakland County or purchasing property in Wayne County, MI could be closer than you think.

For example:  Putting 20% down on a fair-priced house for sale in Oakland County, let’s say $154,400, and your payment would come in at around $616 each month.  That’s only about 12% of the average income for families in the United States.

What else does this new drop in mortgages in Michigan mean?  That it’s actually cheaper to buy a home than rent one.  In fact, this is true for 98 of the top 100 Metro areas around the United States.  The only two metro areas bucking this trend are Honolulu and San Francisco.

No worries for us Michiganders. Read the rest of this entry »