For first-time buyers
First-Time Home Buyer Guide
If you've never bought a home before, the hardest part is that nobody tells you the order things happen in. Here's the whole thing, start to finish, in plain language.
1. Look at your credit and your savings
Pull your credit reports for free at annualcreditreport.com and fix anything wrong before a lender sees it. Then figure out what you actually have available in cash — down payment, closing costs, inspection, and a cushion for after you move in. You do not need 20% down; many Michigan buyers close with 3–5%, and VA and USDA loans can be zero down.
2. Get pre-approved, not just pre-qualified
Pre-qualification is a guess. Pre-approval means a lender checked your income, credit, and assets and put a real number in writing. Sellers here take offers with a pre-approval letter far more seriously, and it tells you your honest price range before you fall in love with something above it. Talk to two or three lenders — rates and fees genuinely differ.
3. Work out the true monthly cost
Your payment is not just the loan. It's principal, interest, property taxes, homeowners insurance, and usually mortgage insurance if you put down less than 20%. In Michigan, taxes can swing the payment by hundreds of dollars depending on the city, so check them per house, not per city average.
4. Decide what you actually need
Bedrooms, commute, garage, yard, move-in ready versus something you can fix over time. Write down the three things you won't compromise on and the three you would. It makes decisions much faster when a good house comes up and you have a weekend to act.
5. Tour homes and make an offer
We'll get you in the door early on new listings. When you find the one, I'll put together an offer — price, closing date, contingencies, and how much earnest money you're putting up — and negotiate on your behalf. In a competitive spot, terms often matter as much as price.
6. Inspection and appraisal
Once your offer is accepted, you get an inspection period. The inspector's job is to tell you what you're buying; nothing is perfect, so the question is what's serious. Your lender orders an appraisal separately to confirm the home is worth what you agreed to pay. Both can lead to renegotiation.
7. Underwriting — and don't move money around
Your lender verifies everything again before closing. Do not open new credit, finance a car, change jobs if you can help it, or make large unexplained deposits. This is where otherwise-fine loans fall apart.
8. Final walkthrough and closing
You'll walk the house right before closing to confirm it's in the agreed condition and anything promised got done. At closing you sign, funds get wired, and the deed records. Then you get the keys. File your Principal Residence Exemption with the local assessor so you're taxed at the lower primary-home rate.
What it costs along the way
- Earnest money deposit
- Typically 1–3% of the price, credited back to you at closing
- Home inspection
- Commonly $350–$600 in Oakland County, paid up front
- Appraisal
- Commonly $500–$750, usually paid to the lender
- Closing costs
- Often 2–5% of the loan amount — lender fees, title, escrow, prepaid taxes and insurance
- Agent commission (buyers)
- Set out in a written buyer agreement before we tour; it's negotiable and I'll walk you through it
Start your search
Tell me where you're looking and I'll map out the plan with you — no pressure, no rush.
Please read
General information only, not legal, tax, lending, or financial advice, and not a guarantee of any outcome. Every dollar figure here is a typical range in this market — your actual costs depend on your lender, the property, and the terms you negotiate. Confirm numbers with your lender, inspector, title company, and tax professional.
Want real numbers instead of estimates?
Send me the address or the price range you're considering and I'll get you the actual figures — the real tax bill, a lender quote, and what similar homes are selling for.