The basics of buying a home in Battle Creek, Michigan are consistent with most any area of the country. The first thing that a buyer should do above any other step is to contact an experienced and knowledgeable local Realtor.
A Realtor is a valuable asset to helping you through the step of the process of buying a home, and can also help you find local lenders that specialize in loan programs that would best suite your needs. The basics of buying a home in Battle Creek, Michigan or anywhere in the financing part require a credit score currently above 620 for most programs, verifiable income, meeting the income requirement guidelines for the given program, and other details such as job tenure.
Sometimes a buyer will have a 620 credit score, but will have overcome a challenging period on their credit history such as bankruptcy or foreclosure in the last few years. Some loan programs will not approve a loan if the bankruptcy has been discharged less than 3 years, or the foreclosure less than 2 years. Other things on the credit report can require explanations, or settlement such as judgments or recent non-medical collections.
Once you have overcome what is needed to gain an approval letter from a lender, you then can begin looking at houses with your Realtor. After you have selected the home you want to make an offer on, note that not only a copy of the pre-approval letter is required to submit with an offer, but also an earnest deposit along with the signed contract and other documents related to the house prepared by your Realtor.
Many first time home buyers do not realize they will need to provide an earnest deposit, which is a sum of money down (usually $500 on most houses under $75000, but can be anywhere from $1000 to $2500). The earnest deposit is held by your Realtor, and deposited into an escrow account once an offer is accepted and it is held until closing, where you are credited for it on the final sale of the home. This money down makes it a legally binding contract in Michigan.
To learn more about the basics of buying a home in Battle Creek, Michigan, give me a call at: 269-441-8182 or visit my website at: www.michaeldelaware.com. I look forward to working with you.