Many people in West Michigan have begun to notice the uptick in real estate prices and values across the region. Rents in many places have been slowly increasing to make the best in the increase in perceived property values, and renters may be looking more closely at the possibility of buying a home in the West Michigan real estate market or the Grand Rapids real estate market.
If your lease is up or is going to be in the first half of 2016, you really owe it to yourself and your financial future to consider making the switch from renter to owner. After all, $900 a month can get you a lot more home for the price when considering monthly mortgage payments versus what that same amount can get you on the local rental market. In some communities, it can be the difference between living in a trailer in a crowded community or having privacy, as well as a yard for your kids or animals to enjoy during the beautiful Michigan summer.
If you've been at the same job or have had a steady flow of income as a self-employed worker for the last year to two years, chances are good that you can qualify for a mortgage. If you plan on applying in the upcoming months, make sure to check your credit score in the near future to make sure there aren't any surprise delinquent accounts or inaccurate late payment marks on your credit report. There are plenty of reputable companies that can help potential homeowners check and clear up their credit before applying for a mortgage. Make a point of checking them out if you're looking to buy soon.
Several local banks offer low and no down payment mortgage programs, though only those with the best credit will be able to qualify for these loans. In general, a down payment of at least 5%, but up to 20%, will be needed to obtain financing. Depending on your income and the intended value of the potential homes you are considering, that may mean you'll need to set your tax return funds aside or tighten the belt when it comes to the household budget over the next few months. If you haven't been saving and don't fall in the very good or excellent credit categories, a private loan from family members may be a possibility, depending on your familial situation. What's most important is knowing up front what you have to bring to the table and being realistic about what you'll be able to invest in a home, both in terms of time and finances.
If you are thinking about making the life-changing switch from renter to home owner, give the experienced, helpful team at Pyxis Realty a call today! You'll be hard pressed to find a West Michigan realtor with more dedication to excellent service, and no matter what your price range, the Pyxis Realty team treats all of its clients with respect and honest consideration. Give us a call today to see how easy becoming a home owner can be!