Buying a home in Troy can look very different from buying in many other parts of Michigan.

Home prices can vary significantly depending on the neighborhood, property type and condition of the home. Buyers may be looking at everything from starter homes and condos to established subdivisions, larger move-up homes and higher-priced properties.

That makes choosing the right financing just as important as finding the right house.

At BrightSide Lending, we help Troy homebuyers compare mortgage options based on the actual property, their financial situation and their long-term plans. That may mean a Conventional loan, FHA financing, VA financing, down payment assistance, a bridge loan or another mortgage strategy.

The goal isn’t simply to get approved.

It’s to structure the financing correctly before you make the offer so you know what you can comfortably afford and can compete confidently when the right home comes along.

This guide covers what Troy homebuyers should know about mortgage financing in 2026, including loan programs, down payments, credit, income, pre-approval, closing costs and some of the issues that can come up during the mortgage process.

Why Work With a Mortgage Broker in Troy, Michigan?

When you’re getting a mortgage, you generally have several places you can go for financing.

You could work with a bank, credit union, online lender or mortgage broker.

A mortgage broker isn’t limited to one lender or one set of mortgage products. We can evaluate different loan programs and lending options to find a structure that fits the borrower and property.

That flexibility can become especially valuable when a transaction isn’t perfectly straightforward.

Maybe you’re:

• Buying before selling your current home
• Self-employed
• Using bonus, overtime or commission income
• Purchasing a condo
• Trying to minimize your down payment
• Considering FHA versus Conventional financing
• A veteran eligible for VA financing
• Using gift funds
• Recovering from a previous credit event
• Looking for down payment assistance
• Purchasing a home that needs renovations

Those situations don’t necessarily make obtaining a mortgage difficult.

They simply make choosing the right lender and loan program more important.

Getting Pre-Approved Before Shopping for a Home in Troy

One of the first things I recommend doing before seriously shopping for a home is obtaining a mortgage pre-approval.

A good pre-approval should be more than someone pulling your credit and generating a letter.

Before you make an offer, we want to understand:

• Your income
• Employment history
• Credit
• Available assets
• Down payment
• Monthly debts
• Estimated property taxes
• Homeowners insurance
• HOA dues, when applicable
• The mortgage program you’re likely to use

We also want to understand your goals.

There’s a big difference between asking:

“What’s the maximum mortgage I can qualify for?”

and:

“What monthly payment am I actually comfortable with?”

Those numbers aren’t always the same.

Your debt-to-income ratio is an important part of mortgage qualification, but just because mortgage guidelines allow a certain payment doesn’t mean you should automatically spend that much.

Before you start touring homes, we can run several purchase prices and down-payment scenarios so you understand approximately what each one does to your monthly payment and cash needed at closing.

Why the Strength of Your Pre-Approval Matters

Not every pre-approval letter carries the same weight.

A seller and their real estate agent may look beyond the dollar amount printed on the letter.

They may want to know whether the lender has actually reviewed the buyer’s documentation, whether there are potential qualification issues and whether the lender has a reputation for getting transactions closed.

This can become especially important if you’re competing against another offer.

Price obviously matters, but sellers also care about certainty.

A strong pre-approval can help demonstrate that you’ve already taken the financing side of the purchase seriously.

If something unusual exists in your financial profile, I’d much rather identify it before you make an offer than discover it during mortgage underwriting.

How Much House Can You Afford in Troy?

Your maximum purchase price depends on more than your income.

The complete housing payment may include:

Principal + Interest + Property Taxes + Homeowners Insurance + Mortgage Insurance + HOA Dues

That means two homes with the same purchase price can have noticeably different monthly payments.

Property taxes are particularly important to evaluate carefully.

The taxes shown on a listing aren’t always the best estimate of what a new owner will eventually pay. Michigan property taxes can change following a transfer of ownership, so buyers should be careful about basing affordability entirely on the seller’s current tax bill.

This is something we can account for when estimating the payment during your pre-approval.

If you’re looking at a condo, HOA dues also need to be included in the calculation.

A $400,000 house with no association dues can qualify differently than a $400,000 condo with a $450 monthly HOA payment.

The purchase price is only one piece of the affordability calculation.

Mortgage Options for Troy Homebuyers

There isn’t one mortgage program that’s best for every buyer.

Your down payment, credit profile, income, military eligibility, property and long-term plans can all influence which option makes the most sense.

Here are several of the most common programs we evaluate.

Conventional Loans

A Conventional loan is one of the most common mortgage options for Troy homebuyers.

Depending on the transaction and borrower qualifications, Conventional financing can offer:

• Low down payment options
• Fixed-rate mortgage options
• Adjustable-rate options
• Mortgage insurance that may eventually be removable when requirements are met
• Financing for primary residences, second homes and investment properties
• Competitive terms for borrowers with strong credit profiles

You don’t necessarily need 20% down to use Conventional financing.

That’s one of the mortgage myths I still hear regularly.

Depending on the program and borrower, a Conventional purchase may require considerably less.

Putting 20% down can eliminate private mortgage insurance in many situations, but that doesn’t automatically mean 20% down is the smartest strategy.

Sometimes keeping additional cash available for reserves, improvements, furniture or other expenses after closing makes more sense.

We can compare the options.

FHA Loans

An FHA loan can be another excellent option, particularly for buyers who need more flexibility with credit or overall qualification.

FHA financing allows down payments as low as 3.5% for borrowers who meet the applicable requirements.

FHA can sometimes be useful when:

• Credit scores are lower
• The buyer has limited funds available for the down payment
• Debt-to-income ratios are more challenging
• Gift funds are being used
• The borrower’s profile doesn’t fit conventional financing as well

But FHA isn’t just a mortgage for people with bad credit.

There are situations where someone who could qualify for both FHA and Conventional financing may still find FHA competitive.

That’s why our FHA vs. Conventional loan comparison should be based on the actual numbers rather than assumptions about which program is supposed to be better.

We want to compare the rate, mortgage insurance, cash required, monthly payment and long-term cost.

VA Loans

For eligible veterans, active-duty service members and certain surviving spouses, a VA loan can be one of the strongest mortgage programs available.

VA financing may provide:

• No down payment in eligible situations
• No monthly private mortgage insurance
• Competitive mortgage rates
• Flexible qualification guidelines
• Options for both purchasing and refinancing

If you’re eligible for VA financing, it’s worth comparing it with your other options even if you have enough money to make a substantial down payment.

Having $50,000 available doesn’t necessarily mean you need to put $50,000 down.

We can compare what happens when you keep some of that money in reserves versus putting more into the property.

First-Time Homebuyers in Troy

Being a first-time homebuyer doesn’t mean you need a special mortgage.

You may qualify for Conventional, FHA, VA or other financing depending on your circumstances.

However, first-time buyers may also have access to down payment assistance programs or other financing options designed to reduce the amount of money needed upfront.

One of the first things we should determine is whether using assistance actually improves the transaction.

Sometimes it does.

Other times, a buyer may be better served by using their own funds and choosing a mortgage with different pricing or fewer restrictions.

Again, we run the numbers.

How Much Money Do You Need to Buy a Home?

Your down payment isn’t the only money you’ll need to consider.

Homebuyers should generally plan for:

Down payment

Closing costs

Prepaid property taxes and homeowners insurance

Initial escrow funding

Home inspection

Appraisal, when required

Moving expenses and post-closing reserves

This is where understanding your expected closing costs before making an offer becomes important.

There may also be situations where the seller can contribute toward allowable closing costs, depending on the loan program and transaction.

Seller concessions can potentially reduce the amount of cash you need at closing, but the offer needs to be structured correctly.

And the lowest possible cash-to-close isn’t always the goal.

I generally want buyers to have money left after purchasing the home.

Draining every dollar from your checking and savings accounts just to get the keys can leave you vulnerable when the furnace quits, the refrigerator dies or you discover that owning a home comes with a never-ending list of things you suddenly want to buy.

What Credit Score Do You Need to Buy a Home in Troy?

There isn’t one universal minimum credit score that applies to every mortgage.

Credit requirements vary by loan program and lender.

Your credit score can also affect more than whether you’re approved.

It may influence:

• Mortgage rate
• Mortgage insurance
• Loan pricing
• Available programs
• Required down payment

If your credit needs improvement, that doesn’t necessarily mean you need to wait years before buying.

Sometimes relatively small changes can make a meaningful difference.

The important thing is to review your credit early enough that we have time to address potential issues before you’re under contract.

And don’t start closing credit cards, opening new accounts or making major changes simply because you’re preparing to buy a house.

Talk to your loan officer first.

Self-Employed Homebuyers in Troy

Being self-employed does not prevent you from getting a mortgage, but the way your income is evaluated can be different from someone receiving a regular W-2 paycheck.

One of the biggest mistakes self-employed buyers make is assuming the income shown on their profit-and-loss statement or the amount deposited into their bank account is automatically the income a mortgage lender will use.

It may not be.

Depending on the loan program and your circumstances, we may need to review items such as:

• Personal and business tax returns
• Length of time in business
• Business ownership percentage
• Year-to-date profit and loss
• Balance sheet
• Business bank statements
• Certain business expenses that may be added back to qualifying income
• Whether income is stable or increasing

Tax deductions can be great at tax time, but they can sometimes reduce the income available for mortgage qualification.

That’s why I recommend that self-employed homebuyers start the mortgage conversation early.

If we review everything before you start shopping, we can determine how much income can actually be used and avoid surprises after you’ve found a house.

Using Overtime, Bonus or Commission Income to Qualify

Troy is home to and surrounded by a large employment base, and not everyone’s compensation consists of a simple salary.

You may receive overtime, bonuses, commissions or a combination of different types of income.

In many cases, overtime, bonus or commission income can be used to qualify for a mortgage when the income meets the applicable history and stability requirements.

The important part is determining how much of that income can be counted.

For example, earning a $20,000 bonus last year doesn’t necessarily mean we’ll automatically add $20,000 to your qualifying income this year.

We may need to look at the history, frequency and likelihood of continuance.

The same applies to overtime and commissions.

This is another reason a thorough pre-approval matters. We want to calculate the income correctly before determining your purchasing power.

Can You Get a Mortgage After Starting a New Job?

Starting a new job doesn’t automatically mean you need to wait two years before buying a home.

That’s another common mortgage misconception.

Depending on the situation, you may be able to qualify shortly after beginning a new position. In some circumstances, buyers may even be able to move forward using qualifying employment that is scheduled to begin after closing, subject to the requirements of the applicable mortgage program.

The details matter.

Your employment history, type of income, start date, occupation and loan program can all affect how the income is treated.

If you’re considering changing employers while shopping for a home, talk with us before making the change.

A new job and mortgage approval can absolutely work together, but it’s much easier when we know about the change ahead of time.

Buying a Troy Home Before Selling Your Current Home

This is a situation we see frequently with move-up buyers.

You already own a home, you’ve built equity, and you’ve found the next house you want to buy.

The problem is that much of the money you intend to use for the new home is still tied up in your current property.

You may also be concerned about qualifying while temporarily carrying two housing payments.

There are several potential ways to structure this depending on your financial situation.

One option may be making the purchase contingent on selling your existing home.

That can reduce risk for the buyer, but it may make the offer less attractive to a seller, particularly when competing against offers without a home-sale contingency.

Another possibility is qualifying to purchase the new home before the existing property sells.

And in the right situation, a bridge loan may allow you to access equity from your current home to help purchase the next one.

How a Bridge Loan Can Help Move-Up Buyers

A bridge loan is designed to solve a fairly specific problem:

You have equity, but you don’t have access to it yet.

Suppose your current home is worth $450,000 and you owe $175,000.

On paper, you have substantial equity.

But if that home hasn’t sold, the equity isn’t sitting in your checking account where you can use it toward the next purchase.

A bridge loan may provide temporary financing that allows you to access some of that equity before the sale is completed.

That can potentially help with:

• Down payment on the new home
• Closing costs
• Making an offer without a home-sale contingency
• Purchasing before your current home closes

Bridge financing isn’t appropriate for everyone.

We need to look at the equity in your existing home, your ability to qualify, the expected sale of the property and the cost of carrying the financing.

But for the right move-up buyer, it can solve one of the biggest logistical problems involved in buying and selling at the same time.

Buying a Condo in Troy

Troy has condominium communities that can provide another option for buyers who want homeownership with less exterior maintenance or simply prefer condo living.

Financing a condo, however, involves something that doesn’t exist with a traditional single-family home.

We’re not only evaluating the borrower.

The condominium project itself may also need to meet requirements for the mortgage program being used.

Depending on the situation, lenders may review items involving the condominium association, insurance, project characteristics and other eligibility requirements.

This is why I like to know that you’re considering a condo during the pre-approval stage.

You may personally be extremely well qualified for the mortgage and still encounter an issue if the condominium project doesn’t meet the requirements of the loan program.

That doesn’t necessarily mean the condo can’t be financed. It means we need to identify the issue and determine what options are available.

Home Appraisal vs. Home Inspection

These two are frequently confused, especially by first-time buyers.

A home inspection is primarily for you.

The inspector evaluates the physical condition of the property and may identify concerns involving the roof, electrical system, plumbing, foundation, HVAC equipment, appliances and other components of the home.

A mortgage appraisal serves a different purpose.

The appraisal helps establish the property’s value for the mortgage transaction and may also address certain property requirements depending on the loan program.

An appraisal is not a substitute for a home inspection.

A house can appraise at the purchase price and still have issues you would want to know about before buying it.

That’s why understanding the difference between a mortgage appraisal and home inspection is important before you’re under contract.

What Happens if the Home Appraises Low?

Let’s say you agree to purchase a Troy home for $500,000.

The appraisal comes back at $480,000.

The lender generally isn’t going to simply pretend the additional $20,000 of value exists.

What happens next depends on the purchase agreement and circumstances.

Potential outcomes might include:

• The seller reduces the price
• The buyer brings additional money
• Buyer and seller negotiate somewhere in the middle
• The appraisal is reviewed if there is legitimate information that may support reconsideration
• The transaction is restructured
• The parties exercise rights available under the purchase agreement

A low appraisal doesn’t automatically kill a transaction.

It does mean we need to understand the numbers and work with the buyer and real estate agents to determine the available options.

Can You Buy a Troy Home That Needs Renovations?

Absolutely.

Sometimes the best opportunity isn’t the house with the brand-new kitchen and perfectly updated bathrooms.

It may be the home that has good bones, a great location and a kitchen that hasn’t changed since everyone thought avocado-green appliances were a good idea.

There are renovation loan options that may allow qualified buyers to finance both the purchase of the property and eligible improvements.

Depending on the transaction, options may include FHA 203(k) financing or Conventional renovation financing.

This can potentially allow you to purchase a property that needs work without having to pay for the entire renovation out of pocket immediately after closing.

Renovation financing is more involved than a standard mortgage, so the property and planned improvements need to be reviewed carefully.

But it can open up homes that other buyers may overlook.

Making a Stronger Offer Without Automatically Offering More Money

When buyers hear “strong offer,” they often assume it means offering the highest price.

Not necessarily.

Price is obviously important, but sellers may consider the entire offer.

Depending on the transaction, that can include:

• Strength of the buyer’s pre-approval
• Down payment
• Type of financing
• Requested seller concessions
• Appraisal terms
• Inspection terms
• Closing date
• Occupancy needs
• Home-sale contingency
• Overall certainty that the transaction will close

This is where communication between the buyer, real estate agent and lender becomes important.

If you’re competing for a home, your agent handles the negotiation strategy. On the financing side, our job is to make sure the mortgage is structured correctly and that we’re available when the listing agent has legitimate questions about your financing.

Sometimes that additional certainty can matter.

Seller Concessions and Closing Costs

Not every buyer needs the seller to pay closing costs.

But when it makes sense, seller concessions can be a valuable negotiating tool.

Instead of simply negotiating the purchase price lower, a buyer may sometimes benefit more from having the seller contribute toward allowable closing costs or other eligible expenses.

For example, imagine you’re deciding between a price reduction and a seller credit.

A relatively small price reduction may only change your monthly mortgage payment modestly.

A seller credit, when permitted and structured correctly, could potentially reduce the amount of money you need to bring to closing or be used toward an eligible interest-rate buydown.

Which option is more valuable depends on the transaction.

We can calculate the numbers so you and your real estate agent can decide how you want to structure the offer.

Should You Buy Down Your Mortgage Rate?

When mortgage rates are higher than buyers would like, the immediate reaction is often:

“How much does it cost to get a lower rate?”

That’s a good question.

But there’s another question that matters just as much:

“How long will it take to recover the upfront cost?”

Paying discount points may lower the mortgage rate, but you’re spending additional money upfront to obtain that rate.

If paying $5,000 saves $100 per month, the simple break-even period would be approximately 50 months.

If you sell or refinance before reaching that point, you may not fully recover the upfront expense.

A mortgage rate buydown should therefore be evaluated based on the cost, monthly savings and how long you reasonably expect to keep that particular mortgage.

Sometimes paying points makes sense.

Sometimes keeping the cash makes more sense.

And sometimes a seller-funded temporary buydown or seller concession can create another option worth evaluating.

When Should You Lock Your Mortgage Rate?

Once you’re under contract, at some point you’ll need to decide when to lock your mortgage rate.

A mortgage rate lock protects the agreed-upon rate for a specified period, subject to the terms of the lock.

Mortgage rates can change as financial markets move, which means waiting to lock creates both potential upside and potential downside.

Nobody can guarantee where mortgage rates will be tomorrow, next week or next month.

Rather than trying to perfectly predict the market, we can discuss the available rate, closing timeline, lock period and your tolerance for the risk of rates changing.

The objective isn’t to brag later that we picked the absolute lowest hour of the month.

It’s to make a financing decision that works for your purchase.

What Happens After Your Offer Is Accepted?

Getting the offer accepted feels like a huge milestone, and it is.

But that’s when the mortgage process really gets moving.

The next stages typically include:

1. Finalizing the mortgage application for the property
2. Providing any updated financial documentation
3. Reviewing and signing loan disclosures
4. Ordering applicable third-party services
5. Completing the appraisal when required
6. Submitting the file through mortgage underwriting
7. Satisfying any underwriting conditions
8. Reviewing final loan and closing figures
9. Receiving the Closing Disclosure
10. Obtaining final approval and eventually becoming clear to close

That last phrase is the one every buyer wants to hear.

But there are still a few important things you need to know between mortgage approval and getting the keys.

Mortgage Underwriting: What Troy Homebuyers Should Expect

Once your mortgage application is complete and the necessary documentation has been collected, the loan moves through mortgage underwriting.

The underwriter’s job is to determine whether the borrower, property and loan meet the requirements of the mortgage program.

That can include reviewing:

• Income and employment
• Credit history
• Monthly debts
• Bank and investment accounts
• Down payment and closing funds
• Large or unusual deposits
• Property appraisal
• Homeowners insurance
• Title information
• Loan program requirements
• Other documentation specific to the transaction

It’s completely normal for an underwriter to request additional documentation.

That doesn’t necessarily mean there’s a problem with your loan.

You may receive a conditional approval, which simply means the loan is approved subject to satisfying certain remaining conditions.

Once those conditions are completed and everything has received final approval, you’re getting much closer to closing.

What NOT to Do While Getting a Mortgage

This section might save you some unnecessary stress.

Getting pre-approved doesn’t mean your finances are frozen forever, but significant changes during the mortgage process can create problems.

Until your purchase has closed, avoid making major financial moves without talking with your loan officer first.

Don’t Open New Credit

That new furniture store may be offering 0% financing for your entire living room.

The couch can wait.

Opening a new credit account could affect your credit score and add a new monthly obligation that needs to be considered for mortgage qualification.

Don’t Buy or Lease a Car

A new $700 monthly car payment can change your debt-to-income ratio considerably.

Even if you’ve already received a mortgage approval, your financial information may be reviewed again before closing.

If you absolutely need to replace a vehicle during the mortgage process, call us before doing it.

Don’t Run Up Your Credit Cards

The same rule applies to large credit card purchases.

Buying appliances, furniture and everything else for the new house before you actually own it can increase your balances and potentially affect your qualification.

Don’t Change Jobs Without Talking to Us

Changing jobs doesn’t automatically destroy a mortgage approval.

But changing your employer, compensation structure, hours or type of employment can affect the income we’re using to qualify you.

Let us review the change before you make it whenever possible.

Don’t Move Large Amounts of Money Around Without Asking

Transferring money between your own accounts may seem harmless, but mortgage underwriting sometimes requires us to document where funds originated.

Moving money through several accounts can create unnecessary paperwork.

If you’re consolidating funds for closing, receiving a gift or making a large deposit, ask us how it should be handled first.

What Does Clear to Close Mean?

After you’ve worked through underwriting and satisfied the remaining conditions, you’ll eventually hear three of the best words in the mortgage process:

Clear to close.

Being clear to close generally means the mortgage has received the approvals necessary to move toward the scheduled closing, assuming nothing materially changes before the transaction is completed.

At that point, you’re almost there.

But “almost” is important.

Don’t celebrate by financing a new truck and buying $15,000 worth of furniture the night before closing.

Wait until the transaction is complete.

Understanding Your Closing Disclosure

Before closing, you’ll receive a Closing Disclosure showing the final details of your mortgage transaction.

It includes information such as:

• Loan amount
• Interest rate
• Monthly principal and interest
• Estimated taxes and insurance
• Mortgage insurance, when applicable
• Closing costs
• Credits
• Cash needed to close

Review it.

Don’t simply scroll to the bottom, find the cash-to-close number and ignore everything else.

We want you to understand the mortgage you’re getting.

If something looks different from what you expected, ask about it before closing day.

What Happens on Closing Day?

This is the part you’ve been working toward.

At closing, you’ll sign the final documents necessary to complete the purchase and mortgage.

Those documents can include the promissory note, mortgage or security instrument, settlement documents and other disclosures associated with the transaction.

You’ll also provide any required funds for closing according to the title company’s instructions.

One extremely important warning:

Mortgage and real estate transactions are targets for wire fraud.

Never rely solely on wiring instructions received unexpectedly by email.

Verify wiring instructions directly with the title company using a trusted phone number before sending money.

Once the required documents are signed, funds are handled and the transaction is completed, ownership can transfer according to the terms of the purchase agreement.

Then comes the part you’ve actually been waiting for:

The keys.

How Long Does It Take to Get a Mortgage?

There isn’t one exact timeline that applies to every transaction.

A straightforward mortgage with responsive borrowers and no unusual property issues can move relatively quickly.

Other transactions take longer because of:

• Appraisal issues
• Condo documentation
• Title problems
• Complicated income
• Self-employment
• Documentation delays
• Repairs
• Renovation financing
• Changes to the transaction
• Underwriting conditions

Speed matters, but accuracy matters too.

Our goal at BrightSide Lending is to identify potential problems early and keep the transaction moving instead of discovering an avoidable issue three days before closing.

What If You’ve Had Credit Problems in the Past?

Perfect credit isn’t required to become a homeowner.

Late payments, collections, high credit card balances and other previous credit problems don’t necessarily eliminate your mortgage options.

Even significant events such as a previous bankruptcy may not prevent you from buying again.

There are specific requirements and waiting periods that can apply when buying a home after bankruptcy, depending on the type of bankruptcy, mortgage program and circumstances.

If you’ve had credit problems, don’t assume you can’t qualify.

Let us look at the situation first.

Sometimes you’re closer to being mortgage-ready than you think.

Should You Choose a 15-Year or 30-Year Mortgage?

Most buyers immediately think of a 30-year mortgage, but that’s not the only option.

With a fixed-rate mortgage, your principal and interest payment is based on a fixed interest rate for the selected loan term.

A shorter term, such as 15 years, generally results in a higher monthly principal-and-interest payment but allows the loan to be paid off considerably faster.

A 30-year mortgage generally provides a lower required monthly principal-and-interest payment and more monthly flexibility.

The right choice depends on your goals.

And choosing a 30-year mortgage doesn’t mean you’re prohibited from paying additional principal when your loan terms permit it.

For many buyers, having the lower required payment while retaining the ability to pay extra can provide useful flexibility.

We can compare both options before you decide.

Should You Choose a Fixed or Adjustable-Rate Mortgage?

A fixed-rate mortgage provides predictability because the interest rate does not change during the fixed loan term.

An adjustable-rate mortgage, or ARM, works differently.

An ARM may provide a fixed rate for an initial period and then adjust according to the terms of the mortgage.

That doesn’t automatically make an ARM good or bad.

It makes it a different financial tool.

An ARM may be worth evaluating for certain buyers depending on the initial rate, adjustment structure, how long they expect to own the home and their tolerance for future payment changes.

For someone planning to stay in the home for decades, predictability may be especially important.

For someone with a different timeline, comparing both structures can be worthwhile.

What About Refinancing Later?

You’ll sometimes hear:

“Buy the house now and refinance when rates come down.”

A future refinance can absolutely be valuable if market conditions and your financial circumstances make it beneficial.

But I don’t recommend buying a house today based on the assumption that refinancing later will rescue an unaffordable payment.

Nobody can promise where mortgage rates will be in the future.

Your home should make financial sense based on the mortgage and payment you’re accepting today.

If rates eventually improve enough to make a mortgage refinance worthwhile, great. We can evaluate it when that opportunity actually exists.

Until then, your current payment needs to fit your budget.

Can You Use Your Home Equity Later?

As you make mortgage payments and your home’s value changes over time, you may build additional equity.

That equity can potentially become a financial resource later.

Depending on your circumstances, homeowners may eventually consider:

• A cash out refinance
• A HELOC
• A home equity loan

These options work differently.

A cash out refinance generally replaces your existing first mortgage with a new, larger mortgage.

A HELOC or home equity loan may allow you to access equity while leaving your existing first mortgage in place.

That distinction can become extremely important if you purchased or refinanced when mortgage rates were considerably lower than current rates.

The right option depends on how much money you need, your existing mortgage, available rates, repayment plans and overall goals.

Frequently Asked Questions About Buying a Home in Troy

How much do I need for a down payment in Troy?

It depends on the mortgage program and your qualifications. Some eligible buyers may purchase with little or no down payment, while others may choose to put substantially more down. You don’t automatically need 20%.

Do I need perfect credit to buy a house?

No. Mortgage programs have different credit requirements, and your overall financial profile matters. Credit can affect your rate, pricing and available options, so reviewing it early is helpful.

Is FHA or Conventional better?

Neither is automatically better. Your credit, down payment, mortgage insurance, rate, monthly payment and long-term plans should be compared before choosing between FHA and Conventional financing.

Can I buy a home if I’m self-employed?

Yes. Self-employed borrowers can qualify for mortgages, although documenting and calculating income can be more involved.

Can I use bonus, overtime or commission income?

Potentially. The income generally needs to meet applicable mortgage guidelines regarding history, stability and likelihood of continuance.

Can I buy another house before selling mine?

Potentially. Some buyers qualify while carrying both properties, while others may use proceeds from the sale of their existing home or consider a bridge loan.

Do I need a home inspection if the lender orders an appraisal?

A mortgage appraisal and home inspection serve different purposes. An appraisal should not be treated as a replacement for an independent home inspection.

How much are closing costs?

Closing costs vary based on the mortgage, property, taxes, insurance, title charges and other transaction details. We can estimate them before you make an offer so you understand your expected cash needed to close.

Can the seller pay my closing costs?

Seller concessions may be permitted depending on the mortgage program and transaction. The amount and permitted uses are subject to applicable guidelines.

When should I lock my mortgage rate?

There isn’t one answer for every borrower. We can evaluate current pricing, your closing date, available lock periods and your tolerance for market movement before you decide.

Can I refinance after buying?

Potentially. Whether refinancing makes sense later will depend on mortgage rates, your loan balance, equity, credit, closing costs and how long you expect to keep the mortgage.

Your Troy Mortgage Should Fit More Than the House

Buying a home is a big financial decision.

The mortgage shouldn’t be an afterthought.

At BrightSide Lending, we want to understand more than the purchase price of the house you’re considering.

We want to know what you’re trying to accomplish.

Maybe you’re buying your first home.

Maybe you’re selling a starter home and moving into something larger.

Maybe you’re relocating for work, buying a condo, purchasing before selling, self-employed or trying to decide how much money you should actually put down.

Those situations can require very different mortgage strategies.

We’ll compare the available options, explain the numbers and help you understand the tradeoffs so you can make an informed decision.

Talk With a Troy, Michigan Mortgage Broker

If you’re thinking about buying a home in Troy, you don’t have to wait until you’ve found the house to start working on the financing.

In fact, I’d rather talk with you first.

We can review your income, credit, assets, monthly debts and goals, compare mortgage programs, estimate your payment and closing costs, and get your financing positioned before you’re ready to make an offer.

BrightSide Lending
586-270-5070

Serving homebuyers throughout Troy, Oakland County and communities across Michigan.

More Than a Mortgage. A Brighter Tomorrow.