Tony Grech

Saan
This was off a quick search on http://www.city-data.com of the zip code you gave
Rent paid by renters in 2007 in zip code 48208:

Less than $100: 15
$100 to $149: 78
$150 to $199: 304
$200 to $249: 121
$250 to $299: 127
$300 to $349: 110
$350 to $399: 115
$400 to $449: 206
$450 to $499: 279
$500 to $549: 147
$550 to $599: 174
$600 to $649: 194
$650 to $699: 91
$700 to $749: 278
$750 to $799: 65
$800 to $899: 80 - Yesterday, 13:11

Hi Nao,
My grandma lived in the Warrendale area for 50 years and I still have friends with family there. So I know a little bit about the area. A quick search of the 48228 area code on city-data.com yielded the following info on rent in the area. Seems like most of the concentration is between $400 and $700 per month. See below.

Rent paid by renters in 2007 in zip code 48228:

Less than $100: 57
$100 to $149: 58
$150 to $199: 132
$200 to $249: 66
$250 to $299: 59
$300 to $349: 153
$350 to $399: 281
$400 to $449: 1,020
$450 to $499: 940
$500 to $549: 1,387
$550 to $599: 868
$600 to $649: 1,198
$650 to $699: 936
$700 to $749: 328
$750 to $799: 56
$800 to $899: 234
$900 to $999: 132
$1,250 to $1,499: 16

Now as far as "how easy" I guess that depends on a lot of things: where within Warrendale is the home located, is it in good move in condition, what is the crime like in the neighborhood.

Last time I drove through there about a month ago I was saddened that the area didnt much resemble the area I remember visiting grandma in as a kid. There were a ton of foreclosed homes, businesses closed down, etc.

I'm sure there is a market there for renters. It just depends at what price. Follow Gary's advice and also try to do some additional research on your own and maybe speak to an agent who specializes in the area

Best of luck,
Tony - Yesterday, 13:09

Hi Christina,

Here in MI taxes are based on 2 factors - the assessed value of the home and the tax rate of the city the home is located in.

In Michigan there are two separate "tax brackets" for real estate taxes - called HOMESTEAD and NON-HOMESTEAD. If the owner of a home actually resides there then he or she is eligible for the homesteaded tax rate, which is discounted. If the home is not owner occupied then the owner is taxed at the non-homesteaded rate.

Since a lot of the homes out there right now are bank owned (foreclosures) and thus not owner-occupied my guess is that this particular home is being taxed at the higher rate. Also, with respect to the assessed value that is being applied to the home, it is likely that the home is being taxed based on an assessment of what the home was worth a year or two back.

Upon purchasing this home, if you decide to live there, you would be eligible to apply for the homestead tax rate and would likely enjoy a reduction in taxes.

I would definitely look to get hooked up with a good buyer's agent to help you navigate these waters. If you are doing research on your own then you can find info about different cities' taxes at https://treas-secure.state.mi.us/ptestimator/PTEstimator.asp and if you want info on schools, crime rates, etc you can look at http://www.city-data.com.

If you need some local assistance on the mortgage end, my office is actually located right on Washtenaw Ave near the Ypsi-Ann Arbor border. Feel free to email me or call the office at 734-528-5511

Tony - Yesterday, 12:50

Stephanie,
The only thing I can think of is if your new lender updates your credit report prior to closing and it shows a short sale or if your scores are affected by the short sale it may hamper your chances. I do believe that most underwriters consider a short sale almost as bad as a foreclosure, however if you have a good explanation such as a job transfer you'll probably be OK. If it's a short sale just because you overbought (financial mismanagement) then you may have problems. You'll probably just have to wait and see - Thu Nov 13 2008, 09:46

Nancy,
The answer to your question depends on a lot of things, such as how much income you make, how much your other expenses are per month, how much money you have left over in savings per month, and what other expenses you might incur after purchasing a home.

I generally wouldnt recommend a mortgage payment over 1/3 of your income UNLESS you have a very healthy income (at least $100,000 per year) and also unless you've shown the ability to save money regularly. The reason for this is that "other" expenses, such as gasoline, car payments, groceries etc are usually not that much different for a family of 4 making $100,000 than for a family of 4 making $60,000. In other words those other expenses are a lower proportion of your income

If you earn the median family income in Los Angeles County (about $60,000) then I'd try to keep your payment no higher than about $1,500-$1,600 per month, which translates to about $180,000 mortgage.
If you're living paycheck to paycheck then don't think you can absorb a couple hundred dollars extra per month if you just "cut back and live on ramen noodles for awhile". Even if you have no debts on your credit report, it's funny how debts accumulate when you stretch yourself like that.

With that being said, if you're responsible with your money and have shown the ability to budget within your means, then it's a great time to become a homeowner. If not, then I'd recommend educating yourself and getting your finances in order before you take the plunge.

Best of luck,
Tony - Mon Nov 10 2008, 08:28