Here to help
Answers to the most common questions about buying, selling, and financing a home in Southeast Michigan. If yours isn't here, an agent is a phone call away.
The first step is to get pre-approved for a mortgage. This tells you how much you can afford and shows sellers you are a serious buyer. From there, a REALTEAM agent will help you identify your needs, search for homes that match your criteria, schedule showings, and guide you through making an offer, negotiations, inspections, and closing.
Most conventional loans require a minimum credit score of 620, while FHA loans may accept scores as low as 580 with a 3.5% down payment. However, a higher credit score typically qualifies you for better interest rates and loan terms. If your score needs improvement, our lending partners can help you create a plan to boost it before applying.
While 20% down is ideal because it eliminates Private Mortgage Insurance (PMI), many loan programs allow significantly less. FHA loans require as little as 3.5%, conventional loans can start at 3%, and VA and USDA loans offer zero-down options for eligible buyers. Michigan also offers the MSHDA down payment assistance program, which can help cover up to $10,000 toward your down payment.
Earnest money is a good-faith deposit you make when submitting an offer on a home, typically 1-2% of the purchase price. It shows the seller you are serious about buying. The money is held in escrow and applied toward your down payment or closing costs at closing. If the deal falls through due to a contingency in your contract (such as a failed inspection), you typically get the earnest money back.
The average closing timeline is 30 to 45 days from the time your offer is accepted. Cash purchases can close in as little as two weeks. The timeline depends on factors like financing, inspections, appraisals, title work, and any negotiations. Your REALTEAM agent will keep you informed at every step and work to ensure a smooth, timely closing.
Absolutely. A home inspection is one of the most important steps in the buying process. A licensed inspector will evaluate the condition of the roof, foundation, plumbing, electrical, HVAC, and more. The inspection report gives you leverage to negotiate repairs or credits with the seller, and it helps you avoid costly surprises after you move in. REALTEAM strongly recommends an inspection on every purchase.
The best way to determine your home's value is through a Comparative Market Analysis (CMA) prepared by a REALTEAM agent. A CMA examines recent sales of similar homes in your area, current market conditions, and your home's unique features. You can also request a free home valuation through our website. While online estimates provide a starting point, a professional CMA is far more accurate.
In Southeast Michigan, spring and early summer (April through June) are traditionally the strongest selling seasons, with more buyers actively searching and homes typically selling faster and for higher prices. However, the best time to sell depends on your personal circumstances and local market conditions. REALTEAM agents monitor the market year-round and can advise you on optimal timing.
Strategic repairs and updates can significantly impact your sale price and how quickly your home sells. Focus on high-impact, cost-effective improvements like fresh paint, updated fixtures, landscaping, and fixing any obvious maintenance issues. Major renovations may not always yield a positive return. Your REALTEAM agent will walk through your home and recommend specific improvements that will maximize your return.
Seller closing costs in Michigan typically range from 6-10% of the sale price. This includes the real estate agent commission, title insurance, transfer taxes, prorated property taxes, and any negotiated buyer credits or repair costs. Your REALTEAM agent will provide a detailed net sheet so you know exactly what to expect before listing your home.
REALTEAM provides a comprehensive marketing strategy for every listing. This includes professional photography and virtual tours, listing on the MLS and all major real estate portals (Zillow, REALTOR.com®, Redfin, etc.), targeted social media advertising, email campaigns to our buyer database, open houses, print materials, and our in-house media company, Lake State Media. Our goal is maximum exposure to attract qualified buyers quickly.
Pre-qualification is an informal estimate of how much you might be able to borrow based on self-reported financial information. Pre-approval is a more rigorous process where a lender verifies your income, assets, credit, and employment to issue a conditional commitment for a specific loan amount. Pre-approval carries much more weight with sellers and is essentially required in today's competitive market. REALTEAM recommends getting pre-approved before you start your home search.
There are several loan programs to fit different buyer situations. Conventional loans are the most common and typically require 3-20% down. FHA loans are government-backed with lower credit and down payment requirements. VA loans offer zero-down financing for veterans and active military. USDA loans provide zero-down options for eligible rural areas. Jumbo loans cover amounts exceeding conventional limits. Our preferred lending partner, Union Home Mortgage, can help you determine which program is the best fit.
Private Mortgage Insurance (PMI) is required on conventional loans when your down payment is less than 20% of the home's purchase price. PMI typically costs between 0.5-1% of the loan amount annually, added to your monthly payment. You can avoid PMI by putting 20% or more down, choosing a VA or USDA loan (which do not require PMI), or using a lender-paid PMI option with a slightly higher interest rate. PMI is automatically removed once your loan balance reaches 78% of the original home value.
The Michigan State Housing Development Authority (MSHDA) offers down payment assistance programs to help first-time and repeat homebuyers. The program provides up to $10,000 in down payment assistance as a zero-interest, non-amortizing loan that is forgiven after a set period if you remain in the home. Eligibility is based on income limits and purchase price limits that vary by county. REALTEAM agents are experienced with MSHDA and can connect you with participating lenders to help you take advantage of this program.
REALTEAM Real Estate is the #1 real estate team in Southeast Michigan with over 6,900 homes sold and 2,000+ five-star reviews. Our team of 80+ experienced agents provides unmatched expertise, negotiation skills, and local market knowledge. We offer a full-service experience including our in-house media company for professional marketing, preferred lending and title partnerships, and a commitment to exceptional communication throughout the process. Whether buying or selling, REALTEAM gives you a competitive advantage.
You can reach REALTEAM in several ways. Call or text us at 586-580-8092, email info@mirealteam.com, or fill out the contact form on our website. You can also visit one of our office locations in Utica or Chesterfield. A team member will respond promptly to connect you with an agent who specializes in your area and needs.
REALTEAM serves all of Southeast Michigan, including Macomb County, Oakland County, Wayne County, St. Clair County, and Lapeer County. Our agents specialize in communities like Sterling Heights, Troy, Rochester Hills, Shelby Township, Macomb, Clinton Township, Warren, Chesterfield, Utica, Royal Oak, Birmingham, Grosse Pointe, St. Clair Shores, and many more. No matter where you are looking to buy or sell in the Metro Detroit area, we have an agent who knows the neighborhood.
Still curious?
Our team is ready to help. Reach out to a REALTEAM agent and get personalized answers to anything we missed.