The Ultimate 90 Day Plan for Buying a Home in Metro Detroit

Embarking on the journey to purchase a home can be both an exhilarating and daunting endeavor. Many prospective homebuyers are plagued by anxiety and frustration due to a lack of clarity on the necessary steps involved. A common mistake made by many is the reliance solely on internet based home-search applications. These platforms often lead to endless scrolling, witnessing ideal homes being swiftly taken off the market, and the painful experience of missed opportunities. The key to success in home buying lies in preparedness. Being well-prepared ensures that when you do find that perfect property, you are ready to swiftly make an offer and proceed to closing. For those planning to secure a home in the near future, understanding the correct sequence of steps is crucial. This guide serves as an essential resource for anyone looking to navigate the complexities of buying a home with confidence and ease.

Whether already living in Metro Detroit, or planning on moving to Metro Detroit, a typical timeline for purchasing a home spans approximately three months. It's rare for individuals to decide to purchase a home and execute the transaction immediately; instead, a three-month window allows for a meticulously structured plan. This timeframe is divided into distinct phases to ensure a smooth progression towards homeownership.

The first phase is dedicated to meticulous planning. Establishing a robust plan at the outset is crucial as it sets the foundation for all subsequent actions. The next phase focuses on the home shopping itself. This period should be maximized to enhance the likelihood of finding the perfect home, without the pressure of rushed decisions. Extensive planning initially allows for a broader window to explore various housing options.

Finally, ample time must be allocated for the closing process. Completing a home purchase isn’t instantaneous; the time from making an offer to actually moving in involves several steps, including legal and financial procedures. Therefore, understanding and planning for these phases are essential for a prospective homebuyer, ensuring they are well-prepared and positioned to move forward effectively once the right home is found.

In a well-structured 90-day plan for purchasing a home, the initial 10 days are allocated to planning. This timeframe, while brief, is designed to be sufficient enough to prevent the process from feeling overly rushed. Following the planning phase, 80 days are dedicated to the crucial activity of home shopping. This extensive period allows prospective buyers to meticulously search for a home that perfectly aligns with both their needs and desires.

For those under a tighter schedule, reducing the home shopping window to 50 days can compress the overall timeline to fit within 90 days, though it's important to recognize that a longer shopping period generally increases the likelihood of finding an ideal home. The final 30 days of the plan are reserved for closing, which is the time needed to complete all legal and financial processes involved in finalizing the home purchase.

One of the primary goals of this structured timeline is to eliminate what might be termed as "Zillow doom scrolling"—a common pitfall where potential buyers endlessly browse listings without the readiness to act. This often leads to frustration, as desirable properties slip away. To combat this, the plan emphasizes the importance of being fully prepared before engaging in the home search. Preparation includes obtaining pre-approval for financing, establishing a clear budget with a realtor, and understanding the exact housing requirements. This proactive approach ensures that when the right home appears, the buyer is ready to proceed confidently and efficiently, avoiding the pitfalls of passive online browsing and the associated emotional strain.

The initial step in the 90-day home buying process emphasizes a strategic sprint to complete all necessary planning before diving into the actual home shopping. This phase is crucial; while browsing for homes online can be engaging and exciting, it is vital to pause and establish a solid plan. This groundwork helps prevent rushed or ill-informed decisions that could complicate later stages of the buying process.

The structured planning phase is designed to prepare buyers thoroughly, equipping them with the necessary tools and information to act decisively when the right opportunity presents itself. The real estate market waits for no one, hence the importance of being ready to move swiftly and effectively.

After the planning is firmly in place, buyers can then shift their focus to monitoring the market for homes that meet their predefined criteria. Once a suitable property is identified, they can confidently proceed to take action, knowing their preparation allows them to navigate the purchasing process with agility and informed precision.

It is important to clarify that the urgency in planning and preparation is not about instilling fear or rushing into a purchase. Rather, it’s about being strategically positioned to act when the time is right. For those who may not be ready to buy within a three-month window, adjusting the timeline is perfectly acceptable. The key is to create a plan tailored to one’s timeline and be prepared to execute it effectively when the decision to buy is made.

Day One: Assessing Your Financial Health

The journey to home ownership begins with a critical assessment of your financial landscape. This initial step involves an in-depth analysis of your budget to determine what you can comfortably afford without compromising your lifestyle. It's essential to take the time to thoroughly review your income and expenses. Whether you prefer using budgeting apps, a simple pen and paper, or a spreadsheet, the goal is to gain a clear understanding of where your money is going.

Scrutinizing bank statements and tracking where every dollar is spent can reveal much about your financial health and readiness for buying a home. This isn't just about knowing your current rent or recognizing how much discretionary income you have; it's about aligning your financial capabilities with the lifestyle you aspire to maintain. While conventional wisdom may offer various rules of thumb, such as allocating 30% of your gross income to housing, the most important factor is how your spending reflects your personal and lifestyle choices. Whether you prefer a larger home and are willing to allocate a higher percentage of your income towards housing, or you value having funds for travel and other experiences, understanding your budgetary limits is crucial.

Day Two: Choosing the Right Realtor

Once you have a firm grasp on your finances, the next step is to connect with a real estate professional. The choice of a realtor should not be left to chance or convenience, such as opting for a friend who recently acquired their license or the first agent you meet at an open house. Instead, selecting a realtor should be a deliberate decision based on their experience and track record. Key factors to consider include the number of years in the business, the volume of homes they handle annually, and the quality of their client reviews.

An experienced agent with a proven ability to navigate complex negotiations will likely secure a better deal in terms of price and terms compared to a novice. Furthermore, an adept agent is distinguished by a low rate of transactions falling through—a critical consideration given that currently, a significant percentage of accepted offers fail to reach closing. A seasoned agent, with a high success rate of over 90% in closing deals, can significantly mitigate the risks involved in the purchasing process.

In essence, a realtor is not just a facilitator of transactions; they are a vital resource in understanding and managing the legal complexities of real estate agreements. Their expertise ensures that you are adequately protected throughout the transaction, particularly when negotiating and finalizing contracts with sellers.

Day Three: Securing Pre-Approval for a Mortgage

The next pivotal step in the home-buying process is obtaining a mortgage pre-approval. This critical measure not only confirms your ability to secure financing but also clarifies which type of loan best suits your financial circumstances. When you engage with a lender, they will evaluate your financial background to determine your eligibility for various mortgage options. This might include conventional loans, FHA loans, or specialized options like USDA or VA loans, which potentially offer zero down payment.

Pre-approval provides a comprehensive overview of what you can afford in terms of a home's purchase price, along with expected monthly payments, interest rates, closing costs, and the necessary down payment. This information is crucial as it defines your budget and guides your search for the perfect home within your financial reach.

When choosing a lender, it is advisable to start with recommendations from your real estate agent. Experienced agents typically have established relationships with reputable lenders who have a proven track record of reliability and excellent service—this not only ensures smooth transactions but also reflects well on the agent. Additionally, consulting with your own bank can provide a familiar and potentially advantageous option, as existing relationships may offer benefits.

To make an informed decision, it is recommended to obtain a Good Faith Estimate from both suggested lenders. This document will detail the terms and costs associated with each loan, allowing you to compare and choose the best offer that meets your needs. By carefully selecting your lender and understanding the specifics of your pre-approved loan, you can navigate the home buying journey with confidence, fully aware of your financial parameters.

Defining Your Financial Comfort Zone

In the context of seeking mortgage pre-approval, it's essential to communicate clearly with your lender about your financial comfort zone. For example, if you're currently spending $1,200 per month on rent, you need to assess whether this expenditure is comfortably within your budget or if it's at the upper limit of what you can afford. This evaluation is crucial as it sets the baseline for what you would be comfortable paying monthly for a new home.

When discussing options with your lender, it might be practical to aim for a monthly mortgage payment around a specific figure, such as $1,600, if that aligns better with your financial goals and lifestyle needs. By setting this target early in the pre-approval process, you ensure that the mortgage options presented to you fit within your comfortable spending range, avoiding the risk of stretching your budget too thin.

After establishing a realistic price range with your lender, the next step is to focus on what you want in a home, balancing your desires with your financial capabilities. This approach not only streamlines the home shopping process but also ensures that you are looking at properties that genuinely fit your budget and lifestyle requirements. By the end of Day Three, you should have a clear understanding of both your financial limits and your housing preferences, setting a solid foundation for the next steps in your home-buying journey.

Day Four: Establishing Your Needs vs. Wants List

The next crucial step in the home-buying process involves distinguishing between your essential needs and your desired wants. This exercise is fundamental in creating a clear roadmap for what you are looking for in a home, helping to streamline the search and avoid potential conflicts.

Begin by taking a plain sheet of paper and drawing a line down the middle to create two columns. Label the left column "Needs" and the right column "Wants." This setup will help you and anyone else involved in the home purchase—be it a family member, partner, or spouse—to methodically define what is absolutely necessary versus what would be nice to have in your new home.

In the "Needs" column, list the indispensable items. For instance, if you have two children, an adequate number of bedrooms would be a non-negotiable need. This section should focus on the must-haves that accommodate your current lifestyle and any foreseeable changes. These are the features you cannot compromise on without significantly impacting your quality of life.

Shift to the "Wants" column to explore additional features that would enhance your living experience but are not strictly necessary. These could include a large garden, a home office, or high-end appliances—elements that you desire but could potentially forego if needed. It's also useful to discuss and decide what compromises you are willing to make regarding these wants.

Furthermore, integrate your budget into both columns. In the "Needs" side, specify the maximum monthly payment you are comfortable with, ensuring it aligns with the financial parameters set during the pre-approval process. On the "Wants" side, you might note preferences related to the home's condition, like seeking a fixer-upper or preferring a move-in ready home.

This list not only aids in maintaining focus during your home search but also serves as a critical tool for managing expectations and preventing disagreements when making decisions. By agreeing on these elements in advance, you can approach house viewings with a united front, making the process smoother and more enjoyable. This structured approach takes into account that while you might not find a home that ticks every box, identifying what you can live without is as important as knowing what you can’t.

Days Four to Six: Planning Your Transition from Your Current Residence

During days four through six, focus shifts towards the logistics of transitioning from your current living situation, which is a pivotal part of the home-buying timeline. This stage requires careful planning, particularly for those who are currently renting, own a home, or live with family or friends.

For Renters:

Assess the alignment of your lease's expiration with your intended home purchase timeline. If there's a mismatch, you'll need to consider your options. One possibility is continuing to pay rent in addition to your new mortgage, which would necessitate adjusting your budget to accommodate both expenses. Alternatively, you could negotiate an early lease termination with your landlord. Some landlords may agree to a buyout, where you might pay a few months' rent upfront to exit the lease early. Each option has its financial implications and should be carefully weighed against your overall budget and moving timeline.

For Homeowners:

If you currently own your home and plan to move, you'll need to strategize the sale of your existing property. This involves several steps, starting with consulting a real estate agent who can provide insights into the current market and advice on the optimal time to list your home. You'll also need to consider what to do with the proceeds from the sale. Options might include using the funds as a down payment on your new home, investing a portion, or even paying off debts. Decisions regarding these funds should align with your long-term financial goals and the needs identified in your home-buying plan.

For Those Living with Family or Friends:

If you are currently in a non-binding living situation, such as with parents or friends, you might have more flexibility regarding your move-out date. However, it's still important to communicate your plans clearly and early to ensure a smooth transition for all parties involved.

Planning your exit strategy is critical to ensure a seamless transition to your new home without unnecessary financial strain or logistical challenges. By addressing these issues early in the home-buying process, you can avoid last-minute hurdles and ensure that your move aligns with your broader financial and personal timelines.

Day Seven: Assembling Your Real Estate Team

As you proceed with your home-buying plan, Day Seven is dedicated to putting together a strong, supportive team that will guide you through the complexities of the real estate process. This team is essential for navigating the various stages of buying a home with expertise and ease.

Your real estate agent is a central figure in this team. Choosing an agent who understands your needs, the local market, and has a proven track record of successful transactions is crucial. Ideally, this would be someone from a team known for its service and results, ensuring you have the best possible guidance. Additionally, you should already be in contact with a loan officer, having started the pre-approval process earlier. This professional will handle the financial aspects of your home purchase, ensuring you have the financing in place when you find the right home.

Day Eight: Securing a Home Inspector

On the eighth day, the focus shifts to selecting a home inspector. While many buyers wait until they are under contract to find an inspector, proactive research into potential inspectors can save time and ensure quality. You can start by asking your real estate agent or loan officer for recommendations. These professionals typically have networks of trusted inspectors whose work they know and value.

Alternatively, online reviews and referrals from friends who recently purchased homes can also lead to reputable inspectors. This step is vital as a thorough home inspection can reveal critical information about the condition of a property, helping you avoid costly surprises after purchase. By securing a competent home inspector early on, you ensure that you’re prepared to move quickly once you find a home you want to buy.

Building a well-rounded team early in the home-buying process sets a solid foundation for a smooth transaction. Each team member plays a specific role, from securing the financing to ensuring the property’s condition meets your expectations, collectively guiding you toward making a well-informed purchase decision.

Days 11 and Beyond: Strategic Home Shopping

After a comprehensive ten-day planning phase, you are now well-prepared to shift focus to the more exciting phase of your home-buying journey: actively shopping for homes. This period is less about the intensive groundwork and more about applying your well-laid plans in the search for your ideal home.

Consulting with Your Real Estate Agent

Your first step in the home shopping phase should be a detailed discussion with your real estate agent. This conversation is crucial—it's an opportunity to review your budget, needs versus wants list, pre-approval details, and target neighborhoods. A competent real estate agent will not only assess the realism of your expectations based on current market conditions but also offer valuable insights that could refine your search criteria.

This discussion can take place in a setting that suits both parties, whether it's a virtual meeting via Zoom, a casual coffee meet-up, or even a more formal office appointment. The key is to ensure that all your prepared criteria are communicated clearly to your agent, who in turn should be able to address any concerns and provide feedback on the viability of your plans within the local market.

Leveraging MLS Access for Home Shopping

Once your criteria are fully discussed and vetted by your agent, the next step involves leveraging the Multiple Listing Service (MLS) to supercharge your home search. The MLS provides more immediate and detailed property information than is available to the general public through third-party websites like Zillow or Realtor.com, which typically experience delays and may not have the most up-to-date listings.

Request that your agent sets you up for MLS updates that match your specific criteria—this includes your budget, desired locations, and your detailed needs and wants. The MLS system allows agents to filter properties that meet your exact preferences, ensuring you receive prompt and relevant property alerts. This can significantly enhance your ability to respond quickly to new listings that fit your criteria, giving you a competitive edge in the market.

Additionally, most real estate agents provide access to an app or a client portal where you can track these listings and receive updates. This setup not only helps in keeping your home search organized but also ensures you have constant access to the latest available homes that meet your needs.

Focused and Realistic Viewing

After setting up the groundwork and gaining access to the most reliable and timely information through the MLS, the next step involves deepening your home search with a focused and realistic approach. It's essential to channel your energies toward homes that not only spark interest but also realistically align with your predefined criteria, including budget, location, and needs.

Strategic Review with Your Real Estate Agent

One effective method to enhance your home search is to schedule dedicated sessions with your real estate agent to review potential homes together. This can be conducted via Zoom or in person, ideally in a setting like an office conference room where distractions are minimized. During these sessions, which might last anywhere from 30 minutes to an hour, you and your agent can collaboratively sift through listings on the MLS.

Analyzing Market Realities and Setting Expectations

A valuable aspect of these reviews involves examining not just active listings but also recently sold properties. This helps establish a more accurate understanding of the local market dynamics, such as whether homes are selling above, below, or right at their asking prices. Understanding these trends is crucial as they vary significantly from one city or neighborhood to another, even within regions as diverse as Metro Detroit.

Visual Assessments and Fit Checks

During the review sessions, focus on the visual aspects of the listings. Look at the photos and virtual tours critically, assessing each property against your needs and wants list. Your agent can provide insights, drawing on their experience and knowledge of the market, to discuss how each home meets your requirements or falls short. They can also guide you in understanding potential hidden values or drawbacks of properties based on visual cues and historical data from similar listings.

Efficiency and Emotional Energy

By concentrating on a realistic and analytical approach to viewing homes online, you conserve both emotional energy and time. It prevents the fatigue that comes from physically touring numerous houses and the emotional rollercoaster of falling in love with properties that might not be a practical choice. This method not only streamlines the search process but also prepares you for making informed and swift decisions when the right opportunity arises.

This strategic, focused viewing process with your agent ensures that each property you consider is a viable candidate, maximizing your chances of finding the ideal home that fulfills both your needs and dreams within the realistic constraints of the market and your personal budget.

Potential Homes and Neighborhoods: In-Person Insights

After meticulously preparing and conducting online searches, the next step in your home-buying journey involves interacting directly with potential homes and their surrounding neighborhoods.

Visiting a Property

Arrange with your real estate agent to visit at least one property that aligns closely with your criteria, even if it's not a perfect match. The importance of physically stepping into a home cannot be overstated—it provides a tangible sense of space, layout, and the condition of the property that photos alone cannot convey. This visit can offer valuable insights into practical issues you might face, such as maintenance needs, the quality of finishes, and the overall feel of the home. Even if the house isn't exactly what you're looking for, each visit refines your understanding of what you do and do not want in your future home.

Exploring Neighborhoods

Equally crucial is spending time in the neighborhoods where you might purchase a home. While online research can provide data on demographics, amenities, and market trends, there is no substitute for the firsthand experience of walking through a community. This helps gauge the vibe and suitability of the area for your lifestyle. Whether you prefer the quiet of secluded streets or the energy of a vibrant area with young families, physically being in the neighborhood allows you to assess nuances like noise levels, traffic patterns, and the condition of public spaces and amenities.

Start by parking in a central location and taking a walk around. Observe the condition of other homes, the friendliness of neighbors, the proximity to parks, schools, and shops, and any other factors that are important to you. Such explorations can significantly impact your decision, as they allow you to feel more connected to the area and better visualize your life in that community.

Community Engagement and Research

Furthermore, delve into local community activities and developments. This can include visiting local community centers, parks, and attending local events if possible. Look for community bulletin boards, local newspapers, and online forums that can provide insights into what’s happening in the area. This research might reveal upcoming developments or community issues that could influence your desire to live there, as well as affect long-term property values.

By combining in-person property visits with thorough neighborhood exploration, you're not just buying a house; you're choosing a community and a lifestyle. These steps ensure that your decision is well-informed and aligned with your long-term happiness and financial goals.

Making an Offer & Going Under Contract

Once you've identified the right home—the one that checks all the boxes on your list—it's time to make a formal offer. This critical step transitions you from a potential buyer to one in active pursuit of purchasing a property.

Making the Initial Offer

Discuss with your real estate agent about how to proceed with the offer. If you've only seen the home online but are confident it meets your needs, you might choose to make an offer immediately to secure your position, especially in a competitive market. Alternatively, if you need more assurance, your agent can arrange a personal showing so you can experience the home firsthand before deciding.

Determining Offer Details

Your offer will include several important components that go beyond the price you're willing to pay. With your agent’s guidance, you’ll decide not only on the offer amount but also on various terms and conditions that need to be included in the purchase agreement. These terms can include:

Offer Price - Whether you match the asking price, decide to offer more to outbid other potential buyers, or offer less if you believe the asking price is above market value.
Inspection Period - The time allowed for you to conduct a home inspection, which can reveal necessary repairs or potential deal breakers.
Appraisal Contingency - This ensures that the home must be appraised at the offer price or higher, which is crucial for securing financing.
Title Company - Designating which company will handle the verification of the home’s title to ensure it's free of liens or disputes.
Closing Timeline - How long the entire process should take, often influenced by the needs of both buyer and seller.

Negotiating the Offer

After submitting your offer, the negotiation phase begins. The seller may accept your offer as presented, reject it, or most commonly, issue a counteroffer. A counteroffer might include adjustments to the price, closing timeline, or other terms you’ve proposed. It’s at this stage you can accept their counteroffer, reject it, or counter back if you think further adjustments are necessary.

Going Under Contract

Once both parties agree on the terms and sign the offer, you are officially under contract. This agreement signifies both parties' commitment to proceed with the transaction under the agreed terms, leading next to the fulfillment of contingencies, finalizing financing, and moving towards closing.

Navigating this process with a knowledgeable real estate agent is crucial as they can provide insights and advice on crafting an offer that not only aligns with market conditions but also protects your interests. This guidance is invaluable in making informed decisions and moving confidently toward acquiring your new home.

Closing on Your Home: Final Steps in the Home Buying Process

Once you're under contract, the closing process begins, marking the final stages before you officially become a homeowner. This period involves a series of important steps, primarily handled by your real estate agent and lender, to ensure all legal and financial obligations are met before you take possession of the property.

1. Document Gathering and Initial Closing Documents

After your offer is accepted by the seller, your lender will request additional documents to update your file. This typically includes recent pay stubs, bank statements, and W2s. You'll also receive your initial closing documents, such as the loan estimate and various disclosures. These documents provide detailed information about your loan terms, responsibilities, and rights as a borrower.

2. Home Inspection

Conducting a home inspection is crucial. It allows you to assess the condition of the property and identify any potential repairs or issues that could affect your decision to proceed with the purchase or renegotiate the terms. Depending on the findings, you might be looking at substantial repairs, which can influence your budget and initial offer.

3. Title Search

A title search is performed by the title company to ensure the property is free of any encumbrances or liens that could affect your ownership. This step is vital as it verifies that the seller has the legal right to sell the home and that there are no undisclosed heirs or legal disputes tied to the property.

4. Conditional Approval from Lender

During this phase, your lender sends all pertinent documents to an underwriter who reviews everything to ensure compliance and risk mitigation. The underwriter might issue a conditional approval, pending items like the title work, the appraisal, and proof of homeowner's insurance, among others.

5. Home Appraisal

An appraisal is mandated by the lender to confirm the value of the property. This step is crucial as it ensures the loan amount does not exceed the home's worth, protecting both your interests and the lender's investment.

6. Reviewing the Closing Disclosure

Before the final signing, you will receive a closing disclosure, which outlines the final loan terms, closing costs, and other financial details. This document must be reviewed carefully to ensure all figures are correct and agreed upon, as it represents the final terms under which you are purchasing the home.

7. Signing Final Documents

The actual closing involves signing all final legal documents that transfer ownership of the home from the seller to you. This might be conducted electronically or in person, depending on the practices of the title company and preferences of the parties involved.

8. Receiving the Keys

Once all documents are signed and the deal is closed, you will receive the keys to your new home. The agreed-upon date of possession is usually immediate, but this can vary based on the terms negotiated during the contract phase.

This comprehensive closing process, while complex, is streamlined by the collaborative efforts of your real estate team, ensuring you transition smoothly into your new home with clarity and confidence.

As you navigate the journey of buying a home, whether you're already living in Metro Detroit or are considering moving to Metro Detroit, the outlined 90-day plan provides a robust framework to ensure a seamless transition. This guide not only prepares you for the financial and logistical aspects of the home-buying process but also equips you with the tools to make informed decisions, from selecting the right real estate agent and securing financing to conducting home inspections and closing effectively. Embrace the excitement of finding your ideal home in this vibrant region, knowing you are well-prepared to make one of the most significant investments of your life. With this comprehensive approach, you'll find that moving to Metro Detroit can be a smooth and rewarding experience, letting you enjoy all the unique benefits of living in this dynamic area.