Buying a home in Michigan as a first time home buyer can be quite stressful. This stress can be dramatically reduced by understanding the home buying process as well as the costs involved. Discover what’s needed to avoid a home buying horror story.
West Bloomfield, United States – July 24, 2014
/PressCable/ — Michigan Mortgage Solutions published their new blog post today: Michigan First Time Home Buyer Programs 2014. This blog post reveals tips to buying a home in Michigan as well as the home buying programs avaialble to first time buyers.
Click here to view the blog post: http://michiganmortgagesolutions.com/michigan-first-time-home-buyer-programs-2014/
“Many borrowers struggle with really understanding the buying process in Michigan especially as a first time home buyer. This blog post gives solid information that’s not rarely mentioned in the Real Estate industry” says Jason Nolan, Predident of Michigan Mortgage Solutions.
If a buyer can’t afford to purchase a home with cash a mortgage will be required. Not every first time home buyer in Michighan will qualify for a mortgage. This why it’s so important to get pre-approved from a mortgage lender prior to shopping for a home.
To get pre-approved for a mortgage, a borrower will need three main things;
1. Credit – A borrower will need a qualifying credit score typically over 600 for an FHA loan
2. Capacity to Repay – A borrower will need to show proof of income to demonstrate the ability to make payments on the mortgage loan
3. Collateral – The home being purchased must appraise for the purchase price
However, while getting pre-approved is the first step, the first time buyer will also need to understand the costs of purchasing a home. These costs include but are not limited to the down payment, third party fees, closing costs, and home inspections including an appraisal.
In certain circumstances, closing costs can actually be more than the down payment and can often be overlooked by first time buyers. This can put a huge strain on the buyers budget and may make a desirable home unaffordable.
“Having a solid understanding of the cash required to close will allow a first time home buyer the ability to craft a good offer. In fact, if you know the numbers ahead of time you may even be able to get the seller to cover some, if not all of the buyers closing costs” says Jason Nolan, Predident of Michigan Mortgage Solutions.
Making the mistake of underestimating the closing costs can turn what’s supposed to be a happy moment into a nightmare really quick. Any good mortgage profressional should be able to provide an accurate estimate of these costs. However, it’s imperative that the correct data is used in place of estimates on items like property taxes and hazard insurance.
About Michigan Mortgage Solutions
Michigan Mortgage Solutions was founded in 1998 and serves the Michigan Real Estate industry. Known best for working with first time home buyers in Michigan and using unique mortgage programs that require little to no money down.