BUYING A HOME The Process
Partner with an Agent
Absorb their local insight
Get to know neighborhood inventory levels
See what is about to hit the market
Gain access to off-market properties
Review market strategies
Complete needs assessment
Under Contract
Fill out an official loan application
Acquire home insurance quote and send proof to the lender
Schedule a home inspection and negotiate repairs
Order and pay for an appraisal (typically after the inspection is complete)
Neutralize any contingencies
Order title work for buyers
Obtain a “clear to close” from lender
Schedule your closing date
Review closing disclosure from the lender
Get Pre-Approved
Understand what you can afford
Determine your monthly mortgage payment
Understand your debt ratio
Collect all required documents
Review through underwriting
Before You Close
Wire transfer funds for closing to the title company or order a certified check
Reserve a moving company and set a moving date
Change your address through USPS, your bank, and other institutions
Set up your utilities to be activated and/or transferred
Confirm that all contingencies are resolved
Schedule the final property walkthrough 24-48 hours prior to closing
Obtain any copies or originals of documents the title company may need (death certificates, trust docs, marriage certificates, etc)
Find Your New Home
Comparison shop neighborhoods and homes in the MLS to determine values
Create a list of your favorite homes to preview
Schedule and tour the homes on your list
Call your lender and have them run the numbers for the house you want to offer on
Offer and Negotiate
Discuss contract terms (price, EMD, occupancy, closing date, etc)
Review disclosures
Determine the best strategies for presenting the offer
Sign the offer (in-person or electronically)
Send to the listing agent
What to prep for close
WHAT TO BRING
Go to your bank and set the wire or obtain a cashier’s check. Bring a printed copy confirming your wire transfer or certified check to closing
Bring government-issued photo ID(s)
Social Security number(s)
Proof of homeowner’s insurance
Your checkbook
Any documents the title company has requested
Closing Day!
Sign all mortgage and deed documents
Drop off homestead documentation and property transfer affidavits to assessors office
Place your paperwork in a safe spot
If there is no post-closing occupancy you can get your keys at closing
Post-closing occupancy will require a key exchange form and a specified date and location to exchange the keys
Discuss the trade contact information with the sellers
FINANCING A HOME The Process
DO DO NOT
• Notify your lender of any address changes while in the process
• Notify your lender of any salary or wage changes (+/-)
• Be prepared to provide proof of significant bank deposits or a reasonable explanation
• Acquire homeowner's insurance quote immediately after going under contract
• Keep all forms of debt paid on time
• Let your HR department know they will get a call to verify your employment and that its critical they respond
• Make large purchases using existing credit without first talking to your lender
• Apply for, open, or acquire any additional lines of credit or debt
• Payoff, transfer, or close credit balances unless your lender instructs you to do so; change jobs or positions without first talking to your lender
• Co-sign for another person seeking to obtain a line of credit or authorize them to make a purchase using your name
• Pay off collections before conferring with your lender
• Quit your job
Have on Hand
1. Most lenders will need a month’s worth of your most recent pay stubs
2. Copies of your last two years’ federal tax returns
3. Names and addresses of your employers over the last two years
4. Last three months of bank statements
5. A copy of your real estate purchase agreement (if you are under contract already)
6. The names and addresses of your landlords over the past two years
7. Divorce/separation documents
8. Copy of child support or alimony paperwork from the court
9. Bankruptcy or discharge of bankruptcy paper
10. Any IRA, 401k, or other financial investments
11. Credit report or social security number to pull your report
EARNEST MONEY DEPOSIT The EMD
This deposit gets made out to whichever title company you and your agent chose to use. It will be held pursuant to Michigan laws and regulations. This can be done using a personal check, cashier’s check, money order, and mobile upload. The EMD is usually 1-3% of the purchase price. The money will likely need to be sourced by the underwriter, so consult with your lender.
PERSONAL CHECKS may take up to 10 days to clear before the tile company can issue a refund in the event the buyer does not wish to move forward with the purchase. It can also just stay in escrow and be applied towards a different house once the mutual release has been signed by the original listing broker.
The amount used for EMD will be applied toward your total down payment and closing costs.
If your EMD is given to you as a gift from someone not on the mortgage, you need to make your lender aware of this. Not every loan will qualify with a “gift” for the down payment.
If your deal is not accepted, the EMD will be returned to the buyer once the mutual release is signed by all parties listed in the transaction. The title company cannot release the funds until all parties involved have come to an agreement. If the sellers refuse to release the funds, then you may have to pursue a legal remedy.
EMD’s are eligible for refunds IF the house does not pass inspection, does not appraise, or the buyer’s loan gets denied. A denial letter from the bank will be required in this instance.
In the event you change your mind about purchasing the home and walk away, your deposit gets forfeited to the sellers as restitution. This does not mean that they cannot come back after you for other damages arising from the breach of contract.
HOME INSPECTION PERIOD
aka Due Diligence Period
Buyers understand they are buying a property “as is” and they are responsible for examining the quality of goods purchased (Caveat Emptor). The brokerages and agents involved in the transaction make no claim to the durability of the home or future guarantees of the condition.
The DUE DILIGENCE PERIOD begins after the final acceptance of the purchase agreement and ends at midnight on the last day specified on the purchase agreement.
The cost of the inspection ranges based on the size of the home and the scope of the work being performed. Additional inspection options available include, but are not limited to: well & septic systems, sewer scopes, radon gas, pools inspections, water analysis, pest inspection, asbestos, thermal imaging, and mold/air quality tests. Check with your inspector to see what options they offer.
Inspection periods are not just limited to the visual inspection of the home. You should also investigate schools, local ordinances, boundary lines, easements, current and future taxes or pending milages, and look for offenders in the area.
Well, septic, water, and pest inspections all must be paid for by the seller or someone other than the buyer for VA loans. This could impact the bottom line for the seller in a multipleoffer situation.
Certain features of VACANT HOMES may require additional inspections to verify functionality or may not be eligible for inspection. If a home has been winterized, buyers and sellers may need to coordinate the turning on of the water and might need to pay to re-winterize. Check with your agent for details.
Various municipalities require inspections through local government agencies before closing. To ensure they do not cause a delay, please order immediately. It is also advised that you obtain a private inspection in addition to the municipality inspection.
FHA AND VA OFFERS require the appraiser to do a visual inspection of the property in addition to the evaluation of the value. If they find something wrong, then those items need to be remedied prior to closing.
OUT OF POCKET EXPENSES
No Surprises
FINANCING CONCERNS
• It is always recommended that you ask your loan officer for a “Locked Loan Estimate” prior to signing an application so you can have a cost breakdown. Make sure to verify their estimates on taxes and insurance to ensure they are accurate and realistic.
• Lenders can charge “loan origination fees” or “discount points” which will greatly impact your funds to close.
• It is important to check in with your lender throughout the process. The interest rate estimate they gave you is subject to change and is not official until the application process has been completed.
• Layoffs, voluntary leaves, maternity/paternity leave, FMLA, reduction in hours, or other related work conditions can impact your ability to get approved for the loan, even if you were “preapproved”.
• Make sure your lender is estimating the increased taxes once ownership of the property has taken place. If the lender bases your payment on the current property taxes and not the new assessed amount after you close, you could be in financial trouble.
OUT OF POCKET EXPENSES
CLOSING COSTS: Ask the lender for more information because these are not standard fees. They typically include paying your taxes in advance (or setting up tax escrows to be paid later), homeowner’s insurance, title fees, loan origination fees from the lender, broker compliance fees from the real estate company, and miscellaneous fees from homeowners associations and title companies.
(range in price based on house size and scope of work) ...............................
homes typically have several other fees Please ask the builder upfront
MANAGING PREAPPROVED Credit Offers & Spam Calls
As a homebuyer, your credit plays a crucial role in securing a mortgage. After applying for a home loan, you may notice an increase in preapproved credit card or insurance offers in the mail, as well as an uptick in spam calls from lenders and solicitors. This happens because credit bureaus allow lenders to send firm offers based on your credit profile.
If you’d like to reduce these offers and protect your personal information, here are two key steps you can take:
1. Opt-Out of Preapproved Credit & Insurance Offers
OptOutPrescreen.com is the official website managed by the major credit bureaus (Equifax, Experian, Innovis, and TransUnion) that allows you to:
Opt-Out for 5 years – Stop receiving firm offers electronically.
Opt-Out permanently – Remove your name permanently by submitting a mail-in request.
Opt-In – If you’ve previously opted out, you can choose to start receiving offers again.
Why consider opting out?
• Reduces the amount of personal financial mail you receive.
• Helps minimize the risk of identity theft.
• Keeps your focus on mortgage-related credit inquiries during the homebuying process.
2. Reduce Spam Calls & Telemarketing Offers
If you’re receiving an overwhelming number of spam calls, especially from mortgage lenders, you can take the following actions:
Register your number with the National Do Not Call Registry at www.donotcall.gov to stop telemarketing calls.
Block unwanted numbers on your smartphone or through your phone carrier’s spam protection services.
Avoid sharing your phone number on online mortgage calculators or inquiry forms unless necessary.
Use call-filtering apps like RoboKiller or Nomorobo to reduce spam calls.
By taking these steps, you can focus on what really matters—finding and financing your dream home without unnecessary distractions.
PREFERRED LENDERS
Joe Bigelman
John Adams Mortgage jbigelman@johnadamsmortgage.com 248-302-3652
Jennifer Bott
Mortgage One JBott@mortgageone.com 586-924-1025
Laura Peters Pointes Home Lending lpeters@pointeshomelending.com 586-557-4138
CC Maciejewski Simple Home Lending ccmac@simplehl.com 586-914-2291
PREFERRED INSPECTORS
Premier Home Inspection www.phiofmichigan.com 248-842-6239
Suarez Home Inspections www.suarezhomeinspections.net 586-315-5356
Total House Inspection www.totalhouseinspection.com 248-550-9492
Weatherstone Property Inspections www.weatherstoneinspections.com 586-651-6556
CON NEC TIONs
PREFERRED MOVERS
Changing Places Moving www.changingplacesmovers.com 248-674-3937
Morse Moving and Storage www.morsemoving.com 734-484-1717
Two Men and A Truck www.twomenandatruck.com 586-315-8739
Tracy Colo Insurance One Agency 586-808-1858 tracy.colo@insone.com
Denise Mansfield Mansfield Insurance Group 248-854-8556 dmansfield@fbinsmi.com