GRAND RAPIDS, Mich. -- It's no secret that the price of houses has shot up dramatically in recent years, making it harder and harder for first time homebuyers.
Dale Hamill, a mortgage loan originator with Lake Michigan Credit Union, talked about the housing crunch on West Michigan's Morning News. He said it is a seller's market, to be sure. He pointed out that the average sale price for a home in Grand Rapids a few years ago was about $243,000, and now it's about $354,000. He also said a myth that you need to put 20 percent of the sale price down before buying a house.
"Most of the loans we do don't have 20 percent down. In fact, we have a lot of programs that are zero-down. We have a lot that are 3- and 5-percent down. So, no, you truly do not have to have 20 percent down to get into a house. There are a lot of great low-down programs for buyers that don't have the downpayment," Hamill said.
Hamill recommends that you pay bills on time and not have too many credit-card accounts open. He says having several credit balances can negatively impact your credit score.
Hamill said it is a good idea to balance your budget.
"In the lending world, we don't want to see your total debt - including your house - to be over 45 percent of your gross income. So, figure out what your other debts are: car, credit cards, student loans. And then, figure out your budget - what you have left over," Hamill said.
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