4 Reasons to Avoid Breaking the Bank As You Buy a House in Grand Rapids

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PiggyIt is very tempting to go ‘all in’ on a house you love, and stretch your budget to its breaking point.  When you find a house that is the right size, in a great neighborhood, with fantastic bonus features, logic can fly out the window.

This is especially challenging when you’ve been trying to buy a house in Grand Rapids for a long time.  Since the market is currently quite hot, homes are moving quickly.  The temptation to over-spend on a property is huge.

However, breaking the bank for a ‘perfect’ house is a recipe for financial disaster.

You will be much better served by sticking to a more modest, reasonable budget that works for your finances.  Here are several reasons to stay modest as you submit your offers.

 1.  Emergencies Happen

Let’s face it – life is messy.  You get a flat tire at the worst possible moment, and have to pay out the nose for a tow truck and new wheel.  Your furnace dies on the coldest day of the year.  A huge windstorm blows dozens of shingles off of your roof, and you have to pay to repair it. Continue reading “4 Reasons to Avoid Breaking the Bank As You Buy a House in Grand Rapids” →

How to Make a Competitive House Offer in a Hot Market (Like Grand Rapids) Without Losing Your Shirt

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SunMany home buyers are starting to get stressed about the market.  We’re straddling the thin line between spring and summer, and houses are moving fast in Grand Rapids.

If you’re looking to buy now, how can you compete in the middle of a hot market?  Generally, sellers are looking for a combination of three things:

  1.  The highest price possible
  2.  The highest likelihood of closing
  3.  The smoothest process, with the fewest headaches

Different sellers will have different priorities.  Some will only care about the highest possible price.  Others will want the quickest and easiest closing, even if they get a little less money in the end.

Knowing this, there are several things you can do to make your offer more attractive.  Let’s dig in to some specifics.

 1.  Get Pre-Approved by a Lender

Once you are serious about making offers, talk to a few mortgage companies.  Shop around for services and recommendations, and don’t be afraid to ask for specifics like interest rates and fees.  Once you feel comfortable that you’ve found a great provider, ask them if you can get pre-approved for a loan. Continue reading “How to Make a Competitive House Offer in a Hot Market (Like Grand Rapids) Without Losing Your Shirt” →

5 Money Saving Tips (So You Can Upgrade Your Home)

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MountainMany of us would like to upgrade our home.  Whether that means moving to a nicer apartment, becoming a first-time homeowner, or adding an extra bedroom above the garage, having extra cash really helps.

But how do you get there?  Reducing your expenses and increasing your savings is a lot easier said than done.  How can you improve your financial situation without sacrificing too much of your lifestyle?

Some quick money saving tips are in order…

1.  Set a Target

It’s difficult to hit a moving target.  It’s even harder to hit an invisible one.  So start by defining your goal.  Do you want to free up $100/month so you can get into a better unit?  Save $4,000 to improve your kitchen?  Scratch together $417.50 to finally get the furnace fixed correctly?

Whatever the case is, write your goal down.  Having vague money saving ambitions is a lot less effective than having a solid number to shoot for.  In addition, if you tie your efforts to a worthy goal, you will have extra motivation to keep those dollars in your pocket. Continue reading “5 Money Saving Tips (So You Can Upgrade Your Home)” →

8 Key Steps to Closing on a House in Grand Rapids

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meetingYou’ve searched high and low, and finally found a great house in your price range.  Congratulations!  We’ve talked previously about how to prepare yourself for negotiations (so you don’t get bullied).  But what happens once you agree on a sale price?

Unfortunately, the journey isn’t over.  Here’s a quick breakdown of the steps you’ll walk through from offer to closing in Grand Rapids.

1.  Escrow

When both parties are represented by a realtor and the house is bought from the MLS, an escrow deposit is expected.  This is a good-faith deposit from the buyer, often 1% of the purchase price.  This money is deposited with a neutral third party, such as a title company, realtor, or attorney. Continue reading “8 Key Steps to Closing on a House in Grand Rapids” →

3 Services You Should Shop Around For When Buying a House

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ViewerBuying a house can be overwhelming.  There are dozens of essential steps, and you will have to hire multiple professionals to complete the process.  With all of the details involved, it’s very easy to throw your hands in the air, and just accept whoever your Realtor (or your uncle Bob) recommends.

However, you can lose a lot of money this way!

While they may be suggesting top-notch professionals, it’s hard to know for sure until you shop around a little bit.  We are NOT recommending that you automatically choose the cheapest option.  However, if you compare and contrast several people in the same industry, it can help you make a great decision about who to work with.

So what companies should you shop around for?

1.  Mortgage Companies

There are many, many mortgage companies in Grand Rapids.  These vary from small operations to large conglomerates, and include banks, credit unions, and independent organizations.  Don’t be afraid to talk to a few, and find the right fit for you! Continue reading “3 Services You Should Shop Around For When Buying a House” →

4 Ways to Stay Sane During the House Buying Process in Grand Rapids

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RelaxBuying a house in Grand Rapids is stressful.  It starts with the looong search for the perfect house.  Then, you have the back and forth of price negotiations.  You have inspections and water reports. The mortgage company asks for about 1,000 documents.  Everyone needs to coordinate with the title company. Etcetera, etcetera.

Does it ever end?  How did such a simple process (buying and selling something) get so crazy?

Fortunately, there is a light at the end of the tunnel.  Once everything clears, you will have a great new place to call your own.  However, how do you deal with stress DURING the closing process?

1.  Remember that the stress is temporary.

Through many cultures, wise teachers have passed on this pearl of advice: “This too, shall pass.” Continue reading “4 Ways to Stay Sane During the House Buying Process in Grand Rapids” →

5 Negotiation Tips (to Avoid Getting Bullied) when Buying or Selling a House in Grand Rapids

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Negotiate
If you’re getting ready to buy or sell a house, it’s easy to get stressed about the upcoming price negotiations. How do you handle offers? Counter-offers? Requests for repairs? It can seem pretty daunting.

However, the negotiations don’t have to be stressful. After all, both parties ultimately want a successful sale! While entire books have been written on bargaining, let’s hit a few high points to make sure you don’t get bullied at the closing table.

 1.  Prepare in advance.

Most people think of negotiations as high-pressure moments, where power plays, shrewd moves, and witty one-liners win the day.  While this looks great on TV, most of the work happens long before you submit an offer. Continue reading “5 Negotiation Tips (to Avoid Getting Bullied) when Buying or Selling a House in Grand Rapids” →

5 Key Preparations for First Time Home Buyers in Grand Rapids

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ClockHappy New Year!  We hope this is a great time for you, and wonderful things happen for you and your loved ones.  If you’re hoping to buy your first home in West Michigan in the coming months, this may be an especially exciting year.

But what is the best way to prepare for your new home purchase?  If you’re looking to buy a house in Grand Rapids or Kalamazoo, there are several great moves you can make to get yourself ready.

1.  Get a Grip on your Finances

No matter how you’re planning to buy your new home, understanding your finances is a great first step.  First, review your assets.  What do you have in your checking account?  Savings?  Do you have any stocks, mutual funds. etcetera?   Knowing exactly what you have to work with is important.

Understanding your monthly cash flow is also crucial.  Houses come with a lot of extra surprises, from leaky pipes to roof repairs.  Once you no longer have a landlord, all of those little fixes will fall on your shoulders.  Are you saving some money each month for unexpected expenses? Continue reading “5 Key Preparations for First Time Home Buyers in Grand Rapids” →

5 Things to Remember BEFORE Buying Your First House in Grand Rapids

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HouseYou’re ready for the jump!

You’ve thought, you’ve planned, and you’re going to buy your first house in Grand Rapids, MI.  Or maybe in Kalamazoo, or Kentwood, or Hastings, but you get the idea.  It’s go time!

This is a very exciting journey.  However, there are a few important things to remember as you start your trip.

Watch1.  Stay calm, and accept the timeline.

Buying a house can take a long time.  From finding the right place, to getting your financing fully approved, to the never-ending negotiations, the home buying process can really drag on.

This is normal, and it’s OK!  There are a lot of moving parts to a real estate transaction, and none of those parts are 100% efficient.  It will probably take longer than you want it to.  If you stay calm and collected, you will sleep much better at night. Continue reading “5 Things to Remember BEFORE Buying Your First House in Grand Rapids” →