Michigan Home buyer tips

So you are thinking of buying your first piece of real estate.  You are thinking maybe a Novi home or wait maybe a Livonia home.  But you don't know what you can afford.  The first thing you should do is to make a budget.  What can you truly afford for a house payment.  You should know this house payment number before you ever talk to a mortgage person or a  Michigan real estate agent. 

Lots of people are in foreclosure because they listened to a mortgage person or a real estate agent.  Nobody ever told them to sit down and figure out they were comfortable with as a house payment.  Many times a bank will loan you more money than you can afford to pay back.  So take your time and make sure you won't be house poor.

Also you need to remember that you will have other payments besides the principal and interest payment on the mortgage.  You will also have

• Homeowners insurance.  For metro Detroit figure at least $600 a year up to $1200 a year depending on where you live and the price of the Metro Detroit home.  A Detroit foreclosure may have a higher rate of insurance than a home in Dearborn because of the crime rates.
• Michgan property taxes.You will have to pay winter and summer property taxes.  Taxes vary widely from city to city and even each piece of real estate.  The absolute minimum I would figure is $300 a month.  And it could go as high as $1000 a month.  It really depends on which home you buy.  Give me a call and I will try to give you an approximate figure on the price range and city you are looking at.
• Homeowner association dues.  Many subdivisions will have a monthly or annual association fee.  Usually they are not outrageous.  But if you are buying a Metro Detroit condo you may have monthly association dues up to $300 a month.

One of the keys to surviving and enjoying life is to live below your means.  Don't buy the huge house unless you absolutely need it.  Buy for the long term.  Have enough money to take vacations, to be able to save , and to enjoy daily life.  You don't want to be living from paycheck to paycheck.

If you are starting your search of Metro Detroit real estate give me a call or email me.  I will send you the latest list of Foreclosures whether you are looking in Livonia, Brighton, Novi or any Metro Detroit suburb.

My quote of the day:

Buy land, they are not making it anymore

                                       Mark Twain