First-Time Buyer
Checklist

Your credit score is the single biggest factor in the interest rate you'll qualify for, and even a small rate difference changes your monthly payment by hundreds of dollars over the life of the loan. Pull your free annual report from AnnualCreditReport.com and review it for errors before you talk to a lender.

Score ranges to know: 760 and above is considered excellent and qualifies for the best conventional rates. 700 to 759 is good and will qualify you for competitive rates with most lenders. 620 to 699 is the minimum range for most conventional and FHA loans, though you'll pay a higher rate. Below 620, your options narrow significantly, but VA loans (if you're eligible) have no minimum credit score set by the VA itself, though most lenders overlay a 580 to 620 floor.

If your score needs work, the highest-impact moves are paying down credit card balances below 30% of your limit, disputing any errors on your report, and avoiding new credit inquiries for at least six months before applying for a mortgage.

Before you start looking at homes, know your number. Lenders use two key ratios: your front-end ratio (housing costs as a percentage of gross monthly income, typically capped at 28% for conventional loans) and your back-end ratio (all monthly debt payments, typically capped at 36% to 43% depending on the loan type).

A lender may approve you for more than you should spend. Run the numbers yourself, accounting for property taxes (which uncap on transfer in Michigan), homeowner's insurance, maintenance (budget 1% to 2% of the home's value annually), and any HOA fees. The goal is a payment that leaves room in your budget for everything else.

The 20%-down myth discourages many buyers who could qualify right now. Here are the actual minimums by loan type:

Conventional: 3% down (with PMI until you reach 20% equity). FHA: 3.5% down with a credit score of 620+. VA: 0% down for eligible veterans and active-duty service members. USDA: 0% down for properties in eligible rural areas.

Beyond the down payment, budget for closing costs (typically 2% to 5% of the purchase price in Michigan), the home inspection ($300 to $500), the appraisal ($400 to $600), and a moving reserve. Nathan can give you a realistic total based on the price range you're targeting.

A pre-qualification is an informal estimate based on self-reported income and debts. A pre-approval is a lender's verified commitment, backed by a review of your actual pay stubs, tax returns, bank statements, and credit report. In competitive West Michigan markets, listing agents treat pre-approval letters as a baseline requirement. Offers without one are routinely passed over.

The pre-approval process takes a few days and involves a hard credit pull (which has a minimal impact on your score if you complete all mortgage inquiries within a 45-day window). Once approved, the letter is typically valid for 60 to 90 days. Nathan can introduce you to lenders who are responsive, thorough, and direct about your options.

Why representation matters. A buyer's agent works exclusively in your interest, negotiating price, identifying issues with properties, managing the inspection and appraisal process, and keeping the transaction on track. In Michigan, buyer's agents are compensated through the commission structure negotiated with the seller, so their services typically cost you nothing directly.

Dual agency in Michigan. Michigan allows dual agency, where a single agent represents both the buyer and the seller in the same transaction. This creates an inherent conflict of interest: the agent cannot fully advocate for either party. Nathan does not practice dual agency. When you work with him, his obligation is to you.

What to look for. Beyond the listing photos, pay attention to the bones of a home: foundation condition, roof age, window quality, HVAC age, water heater condition, and the electrical panel. These are the expensive systems. A home with a new roof and updated mechanicals at a slightly higher price may cost less over five years than a cheaper home with deferred maintenance.

Red flags. Water stains on ceilings or basement walls, musty smells, cracks in the foundation, DIY electrical or plumbing work, and freshly painted patches (which can mask damage). None of these are automatic deal-breakers, but they signal areas where the inspector should look closely.

Don't skip the inspection. In competitive markets, some buyers waive the inspection contingency to make their offer more attractive. This is risky. A home inspection costs $300 to $500 and can uncover tens of thousands of dollars in hidden problems. Nathan will help you structure a competitive offer without gambling on the condition of the home.

Earnest money. In West Michigan, earnest money deposits typically range from 1% to 3% of the purchase price. This deposit is held in escrow and applied to your costs at closing. It demonstrates good faith to the seller.

Contingencies. The three standard protections are the financing contingency (your loan must be approved), the inspection contingency (you can negotiate repairs or walk away based on inspection findings), and the appraisal contingency (the home must appraise at or above the purchase price). Each one is negotiable, and Nathan will advise you on which to include based on the property and the competitive landscape.

Timeline. Michigan purchase agreements typically set a 30 to 45 day closing period. The inspection is usually completed within 7 to 14 days of acceptance, the appraisal within 2 to 3 weeks, and final underwriting approval a few days before closing.

The inspection report will be long, typically 30 to 50 pages is normal. Not everything in it is a negotiation item. Nathan helps you identify the material issues (structural, safety, code, and major-system concerns) and draft a response that's reasonable enough to keep the deal together while protecting your interests.

The appraisal is ordered by your lender to confirm the home's value supports the loan. If it comes in low, you can renegotiate the price, cover the gap out of pocket, or, if you have an appraisal contingency, walk away. Nathan has handled all three scenarios and will help you decide based on the specifics.

The final walkthrough happens on closing day or the day before. It's not another inspection; it's a verification that the home is in the condition specified in the contract. Check that agreed-upon repairs were completed, included appliances and fixtures are present, and nothing has been damaged since the inspection.

If something is wrong, Nathan will address it with the listing agent before you sit down at the closing table. The walkthrough is your last opportunity to confirm everything is in order.