New Home Loan News: Michigan Real Estate Market Ripe for the Plucking

By Gabriel Traverso
Local Lender Columnist
Nov 16, 2007
It's a buyer's market in Michigan and homeowners are trying everything to get things moving. If you're ready to take on a mortgage this summer your timing could be ideal.

New Home Shopping in Michigan

In some markets homeowners are having so much difficulty selling their home that they're even willing to trade homes and in a recent article in The Detroit News a local real estate agent was quoted as saying, "People are trying anything, everything, to sell." Owners of a contemporary 32-unit loft building in Ferndale are offering a year break on the mortgage or a two-year lease on a Land Rover to try and sell lofts. This summer new home buyers seem to have plenty of options in Michigan--are you ready for a new home loan?

A Down Payment for Your Mortgage

For many homebuyers the down payment often seems to be the most difficult part of getting a new home loan. Check with your family to see if anyone can help you out with a loan. If you have an IRA or a 401(k) check with your plan administrator -- it's possible to take out a loan against it without a tax penalty if the money is used for a primary residence. The bottom line is that you shouldn't let this aspect stop you. Get creative and ask for help.

Mortgage Do's and Don'ts

Faced with options and sellers eager to move property, buyers sometimes get hasty and make poor decisions. Check property values thoroughly before you make an offer. Make sure you can afford the home before you end up with a mortgage you can't pay --especially if considering an alternative new home loan product such as an option or interest-only adjustable-rate mortgage. Last, check with more than one mortgage lender to make sure you get the right deal for you. Not all mortgage lenders conduct business the same way and some are more competitive than others.

Sources
The Detroit News
IRS

About the Author
Gabriel Traverso is a freelance writer, professional musician, and an artist. He resides with his family in Reno, NV.