Buying a home along Lake Michigan’s Shoreline is a large decision and one that you’re probably taking very seriously. You’ve heard the reports of the national housing market leaning more in the favor of buyers; which can be very encouraging! However, you may still be a little leery of taking the plunge into the Lake Michigan Shoreline Real Estate market.
Here at Shoreline Property Advisors, we want to provide you with all of the tools and information you need to make an informed decision about buying, selling or investing along Lake Michigan’s shores. While it’s good to pay attention to real estate news and the current market trends; the choice of buying a home whether in Evanston, Chicago’s suburbs, Indiana’s shoreline, or Harbor County Michigan is ultimately up to you.
We’ve pulled together 10 signs that we think will help you determine if you’re ready to buy a Lake Michigan Shoreline home. Take a look!
1. You’ve made the decision to buy on your own terms- Evaluating why you want to buy a home is crucial. Are you the one who wants to buy a home and take on that responsibility or do you have outside pressures that make you feel that you need to buy? Only you know how your finances, personal goals and lifestyle will fit into the home buying process and if you’re not sold on buying; don’t. If you know that you do want to buy a Lake Michigan Shoreline home this year; make sure you determine what you’re comfortable with and stick to it.
2. You’ve been watching home prices in your area- You will need to know what home prices are like along Lake Michigan’s shores before embarking on your house hunt. Of course your Lake Michigan Shoreline Real Estate agent will give great insight into the current home price trends. Having an idea of where the market has been and where it’s going will help you determine if now is the time for you to buy a home.
3. Home prices are stabilizing in your area- Playing off of the previous point, you want to determine what the Lake Michigan Shoreline Real Estate market looks like. It seems that some of the area markets will continue to stabilize themselves, which is great news! Ask yourself how long you plan to stay in your new home. If you only plan on living in the home for a few years; the stabilization of the real estate market will play a larger role. However, if you’re planning on living in your shoreline home long term; you can rest assured that the market will only continue to climb upward and that if you ever plan on selling, the market will be healthy for a home sale.
4. You’re putting money aside- This seems like a very basic point, but a very essential one. The days of “no money down mortgages” are gone and most lenders require at 5% down. You will also make sure that you have additional money for things like closing costs, as well as money in the bank when all is said and done. Lenders are becoming more strict and want to know you can back up the purchase of a home.
5. You have a FICO credit score north of 600- Credit scores are moving to the forefront of being approved for a home loan. Most lenders are expecting a credit score of 600+ even for FHA loans. A good credit score will not only help you qualify for a home loan, but can lower your interest rate, which can save you thousands of dollars in the long run.
6. You’ve established a home-buying budget- If you’ve taken the time to create a home-buying budget chances are you’re serious about buying a home and want to go about it in the best way possible. It’s imperative to establish your budget prior to talking with lenders. Just because you are approved for a certain amount on the loan, does not mean that’s what you can actually afford. Lenders don’t take your extended finances into consideration, but will look at your income. Be sure to stick within your budget to avoid foreclosure and heartache in the future.
7. You’ve researched your mortgage options- It’s important to research which type of mortgage is best for your financial situation. Getting a fixed or adjustable-rate mortgage will depend a lot of your long term goals. Your Lake Michigan Shoreline Real Estate agent will also be able to help you determine which option is better for you and can walk you through the pros and cons of both.
8. You’ve been pre-approved for a mortgage- Getting pre-approved before you meet with a lender can save you time and will be a good indicator of any financial issues that need to be addressed. Things such as credit or income problems are items you want to take care of before trying to get approved for a home loan. Sellers will also take you more seriously if you have your financials in order.
9. Your debt doesn’t eat up too much of your income- Another way to test if you’re ready to buy a home is if you’ve paid down your debts. Lenders will look at your DTI, your debt to income ratio, and if your combined debts (mortgage and other debts) are more than 36% of your yearly income; chances are you will have a hard time qualifying. Each lender varies on this amount, but making the serious decision to buy a home can’t be taken lightly as it may have been in years past. The housing market is really attempting to wipe its slate clean to help lay the ground work for a healthy future.
10. You’re considering a variety of homes- Keeping your options open is key in buying in today’s market. Whether a short sale, foreclosure, or regular home; there are many options that can prove to be great deals. Your Lake Michigan Shoreline Real Estate agent can help you determine which type of home is right for you.
2. You’ve been watching home prices in your area- You will need to know what home prices are like along Lake Michigan’s shores before embarking on your house hunt. Of course your Lake Michigan Shoreline Real Estate agent will give great insight into the current home price trends. Having an idea of where the market has been and where it’s going will help you determine if now is the time for you to buy a home.
3. Home prices are stabilizing in your area- Playing off of the previous point, you want to determine what the Lake Michigan Shoreline Real Estate market looks like. It seems that some of the area markets will continue to stabilize themselves, which is great news! Ask yourself how long you plan to stay in your new home. If you only plan on living in the home for a few years; the stabilization of the real estate market will play a larger role. However, if you’re planning on living in your shoreline home long term; you can rest assured that the market will only continue to climb upward and that if you ever plan on selling, the market will be healthy for a home sale.
4. You’re putting money aside- This seems like a very basic point, but a very essential one. The days of “no money down mortgages” are gone and most lenders require at 5% down. You will also make sure that you have additional money for things like closing costs, as well as money in the bank when all is said and done. Lenders are becoming more strict and want to know you can back up the purchase of a home.
5. You have a FICO credit score north of 600- Credit scores are moving to the forefront of being approved for a home loan. Most lenders are expecting a credit score of 600+ even for FHA loans. A good credit score will not only help you qualify for a home loan, but can lower your interest rate, which can save you thousands of dollars in the long run.
6. You’ve established a home-buying budget- If you’ve taken the time to create a home-buying budget chances are you’re serious about buying a home and want to go about it in the best way possible. It’s imperative to establish your budget prior to talking with lenders. Just because you are approved for a certain amount on the loan, does not mean that’s what you can actually afford. Lenders don’t take your extended finances into consideration, but will look at your income. Be sure to stick within your budget to avoid foreclosure and heartache in the future.
7. You’ve researched your mortgage options- It’s important to research which type of mortgage is best for your financial situation. Getting a fixed or adjustable-rate mortgage will depend a lot of your long term goals. Your Lake Michigan Shoreline Real Estate agent will also be able to help you determine which option is better for you and can walk you through the pros and cons of both.
8. You’ve been pre-approved for a mortgage- Getting pre-approved before you meet with a lender can save you time and will be a good indicator of any financial issues that need to be addressed. Things such as credit or income problems are items you want to take care of before trying to get approved for a home loan. Sellers will also take you more seriously if you have your financials in order.
9. Your debt doesn’t eat up too much of your income- Another way to test if you’re ready to buy a home is if you’ve paid down your debts. Lenders will look at your DTI, your debt to income ratio, and if your combined debts (mortgage and other debts) are more than 36% of your yearly income; chances are you will have a hard time qualifying. Each lender varies on this amount, but making the serious decision to buy a home can’t be taken lightly as it may have been in years past. The housing market is really attempting to wipe its slate clean to help lay the ground work for a healthy future.
10. You’re considering a variety of homes- Keeping your options open is key in buying in today’s market. Whether a short sale, foreclosure, or regular home; there are many options that can prove to be great deals. Your Lake Michigan Shoreline Real Estate agent can help you determine which type of home is right for you.
We hope these points are helpful for you as you determine if you’re ready to jump into the Lake Michigan Shoreline Real Estate market. Again, we understand that buying a home is a huge financial and life decision and we’re here to help in any way we can! Please feel free to contact us today if you have questions or are ready to get started.
We look forward to hearing from you and helping you find the Lake Michigan shoreline home that fits your needs, budget and lifestyle!
Shoreline Property Advisors
@ Prudential Rubloff
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