I'm planning a weekend getaway to Traverse City the first weekend in July. I'm looking for the BEST place to stay. We would definitely like a view of the lake.

That's an easy one-
http://www.grandtraverseresort.com

I would definintely agree - we stayed at the Grand Traverse Resort a couple of years ago in a condominium right on the beach. (As I recall the condos weren't much more than the hotel).

We just went thru the exercise of trying
to find lodging in the TC area for the
same period. Good luck! It's their busiest period due to the Cherry Festival. Even the "best" places are
booked up, especially anything on the water. We decided to stay on the Lealenau peninusula to get away from the crowds. Try the TC tourist
bureau @ 800-travers, they serve as a central reservation service.

Good Luck! If you can't find anything in TC. Try "The Homestead". I don't remember the city but it is near the Sleeping Bear Sand Dunes. They have a nice resort with condos and villas.
Also alternative cities include Charlevoix and Petoskey and a little further away Mackinac City.

Just be aware that if you start looking towards Mackinaw City it's at least an hour and a half from TC. Petoskey is about an hour away.