You, Your Credit and Buying a House

Once you've decided you want to buy a house, or even are still thinking about it, one of the best first steps is to talk to a mortgage lender. As for a Pre-Approval letter and a Good Faith Estimate.



The Pre-Approval letter means that your lender has run your credit and tells you how much you can afford. You will need this letter when you make an offer on a property to prove that you can afford the home.



The Good Faith Estimate (GFE) tells you how much you will need to bring to closing as well as how much your monthly payment will be. It is very helpful when you are planning your monthly budget, as well as looking forward to closing. The GFE should be pretty accurate but it is always good to have some extra money saved up for the closing.



Once you have your Pre-Approval, you need to be careful with your credit. Don't make any big purchases (new car, boat etc.) and don't open up any new credit cards. Also, be sure to keep up with payments on current cards. Your lender will check your credit and employment right before closing. If it has made a change for the worse, you might not be able to get the loan, or the loan might become more expensive.

Planning a Buying Trip to Ann Arbor

So you've decided to buy a house in Ann Arbor or nearby (Dexter, Ypsilanti, Chelsea, Milan, Whitmore Lake). If you can it is best to try to visit Ann Arbor at least twice. The first time is to get a feel for different locations and likes and dislikes. It also helps your Realtor see what type of houses you are interested in. The internet is great, but you really have to be in a house to get a feel for it. The second trip is to zero in on some properties and make a final decision. Can you buy a house in one trip? Sure if you fall in love with something or scheduling makes it difficult to come to town more than once.

When seeing houses on it is usually best to see no more than 10 a day. By the 10th house you are usually fried and they all start to look the same. For the first trip a good schedule would be:

Arrive Friday see 10 houses
Saturday see 10 more houses
Discuss with your Realtor what you liked. Now that you have a lay of the land your internet search will be more productive.

For your second trip a good schedule would be:

Arrive on Thursday, see 10 houses
Friday see 10 houses
Saturday see your top 3 again
Sunday make a decision and write an offer.

Once you write an offer negotiation could take anywhere from 24 hours to 2 weeks. After that it usually takes about 6 weeks to close.

To Rent or Buy?

If you are coming to Ann Arbor you probably are thinking if you should rent or buy. If you are unsure of how long you are going to be in Ann Arbor, you may want to rent for a little while and get a feel for the lay of the land. If you only plan on staying for a couple of years buying can be risky. However if you plan on staying 5 or more years the odds start to be in your favor a little more. With the $8,000 tax credit for first time buyers, low interest rates and the recent market adjustment (prices have come down) it could be a great time to buy.

If you are thinking about renting, you probably want to check out craigslist.org to see what is available. You can also try apartmentguide.com for apartment complexes.

If you decide buying in Ann Arbor might be the way to go one of the first things you want to do is find a Realtor. As a buyer there is no additional cost to have an agent represent you.* Your Realtor can help you narrow your search, show you around town and get you started. You might even get a free lunch : ) Your Realtor will also be able to help you get in touch with a local lender, home inspectors and other local resources.

So how do you find a Realtor? Well there are plenty of us. I think Ann Arbor has about 900. You want someone who is full time and does not just do real estate as a hobby. You also want someone who is busy, but not too busy to carve out a few days to show you homes and even preview some so that you don't waste time on houses that are obviously not a good fit. If you know people in Ann Arbor ask them if they have any recommendations. You may also want to call a few and make sure they are a good fit with what you are looking for. Of course I have to encourage you to look at my site (nicklacyhomes.com) or give me a call (734-709-7643), but I know that I cannot be all things to all people. I'd also be happy to mail you a relocation package if you send me your address. The relo package includes a city guide, menus, maps and much more.




*Some brokers in the area are charging a broker transaction fee of anywhere from $149 to $295 so you might want ask if your Realtor does. My company, Edward Surovell Realtors does not charge this fee.

Making friends in Ann Arbor

Sports are a great way to meet people in Ann Arbor. The Ann Arbor YMCA has classes and programs for adults and kids. They opened their new building in April of 2005 and it is a great facility.
You may also want to try Ann Arbor Rec and Ed which also has classes and sports leagues for adults and kids.

Moving to Ann Arbor

So you are thinking about moving to Ann Arbor. Actually it is a pretty cool place to live. I grew up in town, spent 4 years in Ohio going to school (College of Wooster), and then another 4 living in STL teaching history while my wife was going to med school at Wash U. She matched at U of M for residency in 2003 and we couldn't be happier!

When we moved back I started working for full time for the Ann Arbor YMCA. Previouly I had been working there in the summers since 1996. It was great and I was able to see the transition to the new building. Then at the end of 2005 I decided it was time for a change and got into real estate with Edward Surovell Realtors.

Since then I have worked with a lot of people relocating to Ann Arbor so I thought it would be cool to have a blog that helps people with that transition.