Home buyer Guide
Andy Miller
REAL ESTATE ADVOCATE
home@RealAgentAndy.com
616-419-8455
home buyer's Roadmap
Welcome, future homeowner!
Let's be honest—buying a home is a bit like navigating a maze while blindfolded. Exciting? Absolutely. Complicated? You bet. But don’t sweat it—that’s where I come in.
With a toolbox full of expertise and a sprinkle of humor, I’m here to guide you through every twist and turn of this unique journey. Scroll down to dive into the details of each step.
Feeling overwhelmed already? No worries. Drop me a message, and we'll walk through the process together, hand-in-hand (metaphorically, of course).
Your dream home is just around the corner. Let's get you there.
Ready, set, home!
FINDING THE PROPERTY
Initial
Consultation
Let's sit down and discuss ​what you're looking for in ​a home. Your needs are ​unique, and I'm ​committed to ​customizing your house ​hunting experience.
We’ll review what various ​services cost to ensure ​you’re well-informed. Rest ​assured, this consultation ​is completely free.
Mortgage
Pre-Approval
Let’s find out what you can comfortably afford. I can connect you with reliable lenders who will check your credit, confirm your budget, and provide a pre-approval letter to show sellers you’re a serious buyer.
Home
SearcH
I'll tailor your search ​based on your preferred ​locations and essential ​amenities. You'll receive ​notifications whenever ​properties match your ​criteria.
Use your dashboard to ​favorite properties or ​disregard those that don’t ​meet your needs, keeping ​us (and any buying ​partners) in sync ​throughout your search.
Offer Preparation
Practice makes perfect. I will help you prepare by conducting a dry run where we'll discuss your strategy and understand all the elements of the contract, boosting your confidence for when the perfect house comes along.
CREATING THE OFFER
Making the Offer & Negotiating
Once we've found your ideal property, we'll craft an offer to maximize what you bring to the table. Then I'll present your offer and negotiate the terms to get you the best possible deal, handling all the communications and paperwork.
Offer Accepted!
All buyer and seller parties will sign on the final version of the offer.
Earnest Money Deposit
You’ll deposit funds to demonstrate your commitment to the purchase. If you back out of the deal for unprotected reasons, the deposit goes to the seller.
Appraisal
With your lender, we will coordinate an appraisal of the property, promptly and accurately, affirming that its value is appropriate for your offer price. This is an important step to get your loan approved.
InspectionS
Different situations, such as loan type or property location, may require a variety of inspections. I will coordinate and attend property inspections with you.
NOTE:
Sometimes, the results of these inspections can lead to negotiating repairs or credits. Results can also impact some loan types. We’ll discuss what you can expect.
Expect these common
post-offer costs
Earnest Money
The Earnest Money Deposit (EMD) is a sign of good faith to the seller that you are a serious buyer. It is due within 72 hours of your offer being accepted, but is applied to your closing costs at the end of the transaction. We aim for at least 1% of the purchase price.
Inspection(s)
Inspections are voluntary, but highly recommended. Payment is due directly to the inspector at the time of inspection. Depending on the type(s) you choose, cost is usually about $300—$500.
Home Appraisal
This is the 3rd party review of the property required for a loan to confirm the value is at or more than the purchase price. It’s about $400—$500, part of your closing costs, and is not paid up-front.
mAking it yours
Final walkthrough
I’ll accompany you for a ​final walkthrough of the ​property to ensure ​everything is in the ​expected conditions befor​e signing the closin​g documents​.
Closing
This is the final step where you'll sign documents and officially become a homeowner. Our trusted title agents will explain all the paperwork and ensure you understand every detail before signing.
Possession & Keys
Congratulations on your ​new home!
You’ll receive the keys on ​the date specified in your ​purchase agreement. I'll ​be there to ensure a ​smooth exchange.
First mortgage payment
This typically falls due on the first of the month, about 30 days after closing. I will ensure you know the exact amount and due date at closing.
Expect these common
closing costs
Closing Cost
These are typically between 4%-6% of the purchase price and cover various fees, which we will review together so there are no surprises.
Down Payment
The amount required for a Down Payment depends on the type of loan you use. It could be 0-20% of the purchase price, but is often between 3-10%.
The current Market
It's still a seller's market
Over the last 5 years, the inventory of homes-for-sale has reached historic lows, plus properties are experiencing significant and rapid appreciation. Simply put, supply is low while demand is high.
sellers are looking for
Over List Price
Some of the hottest areas of town are receiving offers over list price. When we are ready to make your offer we will evaluate what houses typically list for versus their actual sales price to see if it would be strategic to offer above list price.
Inspections
With every offer, there is a 10-day inspection period to hire an inspector to locate potential issues. Some buyers are shortening or even waiving their inspection contingency to make their offer more attractive.
Concessions
Asking a seller to pay some of your closing costs will reduce their bottom line and potentially keep them from accepting your offer. If this is something you need help with we have several ideas for getting you what you need. Let us know if this applies to you.
Possession
As we've mentioned, it is a strong seller's market and in many cases, they also have to find a place to move to and are asking for several days after the closing to stay in the house while they look for a new place. If this is a part of the sale we will talk about your options in the offer.
Getting Started
Finances
How Much Can You Spend?
Determine what you’re comfortable spending and how much the bank is willing to lend you. Ensure you have saved enough for a down payment and any unexpected expenses after you buy your home. You'll work with your lender to get pre-approved for a loan, and I'll help you understand which loans are best suited for your needs.
Experts
Support You Can Trust
Buying a home might be the biggest purchase of your life. It's crucial to have experts you can trust by your side. You will likely need a Realtor to navigate the process and a lender for mortgage assistance. Depending on your needs, you may also require an inspector, builder, or surveyor. I'm here to connect you with trusted professionals, ensuring you feel confident every step of the way.
Process
What Comes Next? How Long Will It Take?
The home buyer’s roadmap should give you a solid overview of the process. Since every purchase is unique, we’ll discuss what you can expect and how we can prepare together. My role is to guide you smoothly through this journey. Let me know your questions so you can be a confident buyer. The market moves quickly, so let’s be proactive—get started today!
The Process of hiring a realtor
Realtor Consultation
Meeting with a Realtor to discuss your goals, hopes, budget, and must-haves is a great first step. You’ll get a heads up on what to expect in the market, how long you should expect to be searching, and get your questions answered. We’ll make a plan that’s custom to your needs.
Once the consultation is over, you’ll start receiving new listings that meet your search criteria to consider.
Touring Homes
Realtors are required to have an agreement in writing before a first showing (we’ll cover this next). Touring homes is so much fun. You’ll discover quickly what things are most important to you in your search, some things you may want to change, and can start imagining yourself in a new space!
Realtor Agency Contract
The contract with your agent will detail the services they provide, what you are contracting them to help you purchase, and the compensation rate for those services.
Realtor Compensation
Realtor compensation is the responsibility of the buyer or seller hiring them, and is a negotiable cost.
The Local Element’s Realtor Agency Contract will give your Realtor the ability to negotiate directly with the seller, through the purchase agreement, to pay the Buyer Agent’s Compensation as part of the sale.
Other questions? Please ask me!
I love helping people find their dreams. If I don’t have an answer, I know how to get it. Let’s get to started!
Andy Miller
REAL ESTATE ADVOCATE
Dos & don’ts when buying a home
Don't Quit Your Job (Yet)
Your lender is evaluating your risk for a loan and needs to show your stability of income.
Don't Try to Do Everything Yourself
Let your Realtor help you with coordinating the process and people, or make referrals for awesome service providers who will save you time and money.
Don't Take on New Debt
New Car? Appliances? Furniture? Don't do it!
Even a credit inquiry during the loan process can change your credit score and debt ratios.
Don't Stop Paying Your Bills
Not paying your bills changes your credit and could disqualify you from that next mortgage at the last minute!
Do Ask Questions!
Your Realtor is your experienced guide. Got a question? Ask!
Do Make a Budget
What are you comfortable spending? Make sure you have money saved for a down payment & for anything that could pop up after the purchase.
The Local Element difference
community
While touring new neighborhoods we love pointing out local favorites and community ammenities.
relationships
We maintain a solid reputation within our Realtor Board to make sure your offer gets full consideration.
strong offers
Our agents have access to a full list of clauses, Broker support, and trusted local partners to write your offer as airtight as possible.
seller
motivation
When writing an offer, The Local Element will contact the listing side to learn as much as possible about seller's motivation to make sure we are writing the offer to suit their priorities.
Offer Presentation
Our Agents work hard to put your offer in the best light.
Each offer presentation includes an Executive Summary where we highlight the strongest points of your offer and the team of professionals representing you in the process.
Our presentations also include all offer documents, your proof of funds, and confirmation of presentation to the sellers with feedback.
you’ll love working together
Things We Love Doing for You
Advocacy: Championing your interests.
Education: Clarifying each step for you.
Negotiations: Securing your best deal.
Guidance: Leading your journey.
Referrals: Connecting you with trusted pros.
Weekly Updates: Keeping you in the loop.
A Great Experience: Working hard for you.
Andy Miller
YOUR REAL ESTATE ADVOCATE FOR LIFE
First-Time Home Buyer assistance Programs
These local and regional programs may help qualified first time home buyers.
Mshda
The Michigan State Housing Development Authority (MSHDA) is an agency through the state that has a goal of increasing homeownership.
FHLBI
The Federal Home Loan Bank of Indianapolis (FHLBI) is private secondary bank with the goal of increasing home ownership in the Midwest Region.
City of gr
The City of Grand Rapids Community Development Department has the goal of increasing home ownership within the City of Grand Rapids through their Homebuyer Assistance fund.
ICCF
IFFC Community Home is a Michigan non-profit with the goal to strengthen and empower individuals on the journey to reach their housing goals.
MSHDA
They are offering up to $10,000 downpayment assistance to First-Time Homebuyers. It is pared on top of your loan and requires an approval process from MSHDA as well as the lender. Because of the extra paperwork, we highly recommend you use an expert lender. We are happy to introduce you a lender we trust who does dozens of MSHDA loans a month.
Guidelines
First Time Homebuyer
Either it is your first home or you haven't owned a home in over 3 years.
Take a First Time Homebuyer Course
Available online or in-person, you must complete a 6 hour course.
Income limits
This program has income limits that vary by county and household size. Contact me for details.
Credit Score
The program, and most loans require a 640 credit score.
Notes
- You must use a participating lender.
- Maximum Purchase Price is $224,500.
- All adults in the household must apply for credit.
- This requires it's own approval from MSHDA in addition to your lender so it takes about 2 weeks longer to close.
- This is technically a second mortgage but nothing needs to be paid on it unless the home is sold or first mortgage is paid in full. Then the assistance amount would need to be paid back.
FHLBI
They are offering up to $20,000 downpayment assistance program to First-Time Homebuyers. It is available beginning in April each year and paired on top of your loan. It requires additional approval from the FHLBI as well as the lender. Because of the extra paperwork, we highly recommend you use an expert lender. We are happy to introduce you a lender we trust who does dozens of FHLBI loans a month.
Guidelines
First Time Homebuyer
Either it is your first home or you haven't owned a home in over 3 years.
Take a First Time Homebuyer Course
Available online or in-person, you must complete a 6 hour course.
Income limits
80% of the Area Median Income based on household size.
Minimum investment
Buyer must personally contribute a minimum of $500 to the purchase.
Notes
- You must use a participating lender.
- All adults in the household must be included the income calculation.
- This requires it's own approval from FHLBI in addition to your lender so it takes about 2 weeks longer to close.
- This is technically a second mortgage for 5 years on the house. If the home is sold during those 5 years the repayment is prorated to how long you lived there.
City of GR
They are offering up to $7,500 downpayment assistance program to First-Time Homebuyers. The Program is available within the city limits of Grand Rapids. It requires additional approval from the city as well as the lender. Because of the extra paperwork, we highly recommend you use an expert lender. We are happy to introduce you a lender we trust who does dozens of City of Grand Rapids loans a month.
Guidelines
First Time Homebuyer
Either it is your first home or you haven't owned a home in over 3 years.
Take a First Time Homebuyer Course
Available online or in-person, you must complete a 6 hour course.
Minimum investment
Buyer must personally contribute a minimum of $1,000 to the purchase.
Income limits
80% of the Area Median Income based on household size.
Notes
- You must use a participating lender.
- Household may not have more than $10,000 in assests.
- All adults in the household must be included the income calculation.
- Home must pass a physical inspection by the city.
- This is technically a second mortgage for 5 years on the house. If the home is sold during those 5 years, the repayment is prorated to how long you lived there.
ICCF
They match the savings of a First-Time Homebuyers 3 to 1, so if a homebuyer saves $1,000, ICCF will match it with $3,000. The program requires regular savings deposits over the course of 6 months (minimum) and can be paired with any of the other downpayment programs in this guide. The homebuyer MUST work with ICCF directly for counseling to access this program. This course can also be used to meet the requirements of the other programs in this guide. We are happy to connect you directly with the Program Manager.
Guidelines
First Time Homebuyer
Either it is your first home or you haven't owned a home in over 3 years.
Take a First Time Homebuyer Course
Available online or in-person, you must complete a 6 hour course.
Minimum investment
Buyer must personally contribute a minimum of $1,000 to the purchase.
Income limits
200% of the Poverty Limit. For example, a household of 4 cannot exceed $50,200
Andy Miller
YOUR REAL ESTATE ADVOCATE FOR LIFE