Macomb County MI real estate - 1st time home buyers info & advice

We've all heard that the mortgage market has changed dramatically in the last
year to 18 months, but I think it's time to reiterate some things:

A paper trail is king:   Keep a paper trail of everything you do financially
for the previous 6 months prior to purchasing your home.   Think of it as
a long paper trail - if any transaction you make has a piece of paper attached
to it save it.   You'd be suprised at how much you throw away or shred that
will be asked for later by your mortgage lender.

Appraisals and the look back period:   Ninety days is what you should be
looking at - not the last 6 months, certainly not the last year.   If you are thinking
of writing an offer on a home insist that your buyers agent look back 90 days
for competitive sales within a one mile radius preferrably.  Why?  Because that
is exactly what the appraisor will be doing.  

There aren't any zero down mortgages anymore:  Unless you are purchasing
using your VA benefits please don't ask about purchasing a home without any money.
It isn't possible.  If I'm wrong I'm sure the mortgage lenders out there will be all over me
about this one, but frankly I haven't heard about any of those mortgages in over a year.

**Edit: Ron Tiller (Five Star Real Estate - Grand rapids MI) pointed out to me that USDA
Rural loans are still available.  I have egg on my face and I don't mind one bit.  Thank
you Ron!

Just give it to them:  Your mortgage lender may ask for some things that make
you shake your head in bewilderment wondering why they would need it.  Don't
take it personally.  They have their new guidelines of what is acceptable and what
is not acceptable documentation (see paper trail above).  It has nothing to do with
you personally.  

I try to prepare my buyer clients for the task of gathering everything they need for
their mortgage lender and the difficulty it can sometimes be for them.    One phrase
that I keep saying over and over again is this:

"They will ask you for everything, don't be surprised and don't take it personally.
 Unless of course they ask what brand of toilet tissue you purchase, then we'll all
have a good laugh before you tell them."


Kris Wales - A partner for you real estate needs in Macomb County MI

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