Michigan First Time Home Buyer
As a first time home buyer in Michigan, it’s incredibly important for you to understand how the home buying process works. On top of understanding the process, you’ll also need to become familiar with your financing options to determine which home buying program is best for you. A good mortgage lender will be able to thoroughly explain your financing options and help you choose the program that best suits your specific home buying needs.
Buying your first home can be very exciting but it can also turn into a nightmare scenario within an instant. The main catalyst for this nightmare scenario is not getting an accurate estimate on the costs associated with the mortgage financing. Most loan programs will require some form of down payment but even if a down payment isn’t required, you will still have costs associated with the mortgage. Depending on the property being purchased, these costs can total thousands of dollars.
Unfortunately, a lot of lenders use estimates for common costs like property taxes, homeowners insurance, and tax prorations. These estimates can be off by thousands and can cause two potential problem scenarios. The first being if the lender estimates the costs too high and you don’t have enough verified funds to close. This will get you a denial letter and prevent you from buying the home you want for no good reason other then the lender being lazy and using estimates to do bad math.
The second scenario is if the lender estimates too low causing you to bring more money to close than you anticipated. This scenario is more common and can really make things hard on a first time buyer. The worst part about this second scenario is that you don’t really find out if your lender used estimates until maybe a week before closing. Imagine finding out four days prior to buying your home that you need an additional $1,000 or $2,000 dollars to close. This causes a lot of unnecessary stress about where you’re going to get the extra money needed to buy your home.
Both of these scenarios can be avoided by working with, and getting pre-approved by, a good reputable mortgage lender. Fortunately, if you’re reading this, you’ve found one in Michigan Mortgage Solutions as we’ve been providing help for first time home buyers in Michigan since 1998. If you’d like to get pre-approved the right way and avoid the two scenarios above, call (248) 674-6450 right now or simply click here. Also, for more information on first time home buyer programs in Michigan, see below.
Michigan First Time Home Buyer Programs
There are several great mortgage programs for the first time home buyer and each one has it’s own unique features. I’ve laid out the fundamentals of each program below as well as informational links to each program’s specific guidelines.