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” →

What to Look For in a Grand Rapids Mortgage

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BookIf you’re just starting the home buying process, or it’s been a while since you purchased a house, mortgages can seem pretty scary.  What kinds of home loans are available?  What is an ARM, and why does it matter?  What is the difference between an FHA, VA, and USDA/RD loan?

(Also, what’s with all of these letters? Did someone knock over a scrabble board?)  

Fortunately, Grand Rapids mortgages aren’t rocket science.  So what do you need to know, and what should you look out for?

1.  Fixed Rate vs. Adjustable Rate Mortgages

Let’s start with the difference between a fixed-rate home loan and an adjustable rate mortgage (ARM).

First, understand that mortgage terms are long.  They are usually 10, 15, or 30 year agreements to pay back the loan, and you are charged interest until the mortgage is paid off. Continue reading “What to Look For in a Grand Rapids Mortgage” →

How to Qualify for Rent to Own Houses in Grand Rapids

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roomRent to own houses in Grand Rapids and Kalamazoo are a wonderful way to get on the road to home ownership.  While there aren’t tons of these available (they tend to move quickly!), there are many advantages to this type of property.

First, you can move into a great house right away, and have a clear path to ownership.  Rather than renting one place, while you look to buy another, you get a very convenient two-for-one deal.  Secondly, if you don’t currently qualify for a mortgage, you can still live in a great house while building up your credit and down payment.

There are several other perks.  You can try out a neighborhood before you fully commit to it, and make sure the schools are right for you and your family.  You can take care of a home as if it’s your own, and really make it feel personal.  The list of benefits goes on and on.

So how do you qualify for rent to own houses in Grand Rapids?  While the conditions will vary based on the seller, here are a few basic guidelines to get you started.

 1.  Solid Income

Rent to own properties are rentals, but you also have the option to purchase it at some point in the future.  Therefore, the seller will want to see that you can consistently make payments.  If you have proof of reliable income and solid payment history, that is a great start. Continue reading “How to Qualify for Rent to Own Houses in Grand Rapids” →

Understanding Housing Discrimination Law in Grand Rapids

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No EntryWhile most people in the housing industry will treat you fairly, discrimination still occurs.  You don’t hear about many cases in Grand Rapids, but you should always be aware of your rights.  The better armed you are with knowledge, the more you can protect yourself from these illegal and immoral practices.

So what does the law say, and how can you protect yourself?  While we are not attorneys, and this shouldn’t be considered legal advice, here are a few basics to get you started.

Equal Credit Opportunity Act

Two federal laws are written to protect you against discrimination in the housing market in Grand Rapids.  The first is the Equal Credit Opportunity Act (ECOA).  This law forbids credit discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or whether you receive income from public assistance.

This is very important when applying for any kind of financing.  Potential lenders in Grand Rapids may ask you for most of this information in certain situations, but they can NEVER use it to determine whether or not you get credit, or your loan terms. Continue reading “Understanding Housing Discrimination Law 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” →

3 Quick and Easy Ways to Investigate Neighborhoods in Grand Rapids

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MagnifyWhen you’re researching houses to buy or rent in Grand Rapids, you need more than the basics.  Knowing the beds, baths, and square footage of a house just isn’t enough!  You need to learn about the neighborhood, the crime rate, the schools, and nearby house values.

But how do you find that information quickly and easily?  As it turns out, you can navigate many free-to-use websites to find the important data.  How can you quickly find what you need to know in Grand Rapids neighborhoods?  Let’s dive in.

1.  Neighborhood Crime

If you’re not familiar with a particular neighborhood, it can be tough to gauge how safe the streets are.  Your best bet is to drive the area, visit local businesses, and ask the people that live there.  However, if you’re searching a lot of areas and houses, having quick access to crime data is a nice luxury. Continue reading “3 Quick and Easy Ways to Investigate Neighborhoods in Grand Rapids” →

Should You Rent or Buy Your Next House in Grand Rapids?

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thinkShould you buy or rent your next house?  For many decades, it seemed to be a no-brainer:  if you were able to buy a house, you did it!  But now, with more mobile lifestyles, changing housing markets, and the high quality of available rentals, it can be a tougher decision.

So how do you decide if you should rent or buy your next house in Grand Rapids?  In the end, it is a very personal decision.  However, here are a few key things to think about as you consider your options.

1.   Length of Stay

First, how long do you plan to live in your new house?  Are you confident that you like the neighborhood, the school districts, and the commute to work?  Think long term.

If you don’t think you’ll continue to enjoy the location in a couple of years, choose to rent.  If you’re not ready to settle down, buying doesn’t make much financial sense. Continue reading “Should You Rent or Buy Your Next House in Grand Rapids?” →