Get All Of The Facts!
The most important thing you can do for yourself in any transaction is to get all of the facts. This doesn't matter if this is your first home, second home, investment property, etc. The biggest complaint I hear from clients that have worked with other agents, mortgage reps, and title companies is that they weren't given a clear picture of their closing costs or future payments.
When you sit down with your mortgage rep. for the first time - MAKE SURE you get a good faith estimate with a clear picture of what that institution's closing fees will be. You should also ask if they hold an escrow for you to pay your future property taxes, and how many months they hold at a time. You should also know 'UP FRONT' if there are any points associated with your mortgage, or if there is a pre-payment penalty (among other questions). Armed with the above information - you can have your agent help you assemble an rough 'Buyer's Net Sheet' to give you a fairly clear idea of just how much money you will need to bring to close. Often times it isn't the amount of money that someone has to bring to close that is alarming, it's the surprise of finding out at the last minute.
This is especially true if you are selling a home. Absolutely have your agent draw up a few possible selling prices and show you what you would net at the different prices.
When buying a home, many people don't factor in the costs of services that typically are incurred before the closing. Examples include a home inspection, the appraisal, and homeowner's insurance. If you're buying a home (not a condo where the exterior insurance is covered by an association fee) you may need to purchase a 1 year policy and bring a paid receipt for this policy to your closing. Depending upon the size of your home - this can range from several hundred to several thousand dollars. Don't forget though - you should DEFINITELY shop around for your homeowner's insurance to get the best deal possible. Sometimes you get the best deal from the provider you get Automotive Insurance from as you'll get a multiple policy discount, but that's not always the case. A useful tool on the michigan.gov site is the following link:
When you sit down with your mortgage rep. for the first time - MAKE SURE you get a good faith estimate with a clear picture of what that institution's closing fees will be. You should also ask if they hold an escrow for you to pay your future property taxes, and how many months they hold at a time. You should also know 'UP FRONT' if there are any points associated with your mortgage, or if there is a pre-payment penalty (among other questions). Armed with the above information - you can have your agent help you assemble an rough 'Buyer's Net Sheet' to give you a fairly clear idea of just how much money you will need to bring to close. Often times it isn't the amount of money that someone has to bring to close that is alarming, it's the surprise of finding out at the last minute.
This is especially true if you are selling a home. Absolutely have your agent draw up a few possible selling prices and show you what you would net at the different prices.
When buying a home, many people don't factor in the costs of services that typically are incurred before the closing. Examples include a home inspection, the appraisal, and homeowner's insurance. If you're buying a home (not a condo where the exterior insurance is covered by an association fee) you may need to purchase a 1 year policy and bring a paid receipt for this policy to your closing. Depending upon the size of your home - this can range from several hundred to several thousand dollars. Don't forget though - you should DEFINITELY shop around for your homeowner's insurance to get the best deal possible. Sometimes you get the best deal from the provider you get Automotive Insurance from as you'll get a multiple policy discount, but that's not always the case. A useful tool on the michigan.gov site is the following link:
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