Purchasing a residential property as a first-time homebuyer is always an exciting time. There’s that anticipation for a property you can finally call your own.
However, preparing for homeownership can also be overwhelming. Firstly, purchasing a home is a large transaction—it can even be the biggest one you’ll ever make in your lifetime. On top of that, there are layers of processes involved before you can finally get the keys to your property.
With all of that said, taking the plunge into homeownership is still worth it. The satisfaction you will get from living in a comfortable house as a fruit of your hard work will far outweigh all stresses.
To help you navigate this phase easier, refer to the items below for the main steps involved in a home purchase:
Prepare Your Finances
There are two main things you need to do to prepare for this transaction financially: apply for a mortgage loan and save for a down payment.
However, before you approach mortgage lenders, you must first check your credit score. Lenders look at this number to assess if you are truly capable of repaying the money they will provide. If your score falls below 640, you’ll need to improve that first. Pay off your debt as much as you can, avoid extending credits, and hold off other significant purchases.
After you’ve taken control of your credit score, it’s time to put together your own funds. While there are housing loan programs that do not require a down payment, homebuyers usually need to put down 15-20%. That said, loan programs change their guidelines now and then. It’s best to consult with a loan professional about the down payment you need to generate.
Partner With a Real Estate Agent and Mortgage Originator
To get the ball rolling, you need to find the key people who will help you realize this transaction: a real estate agent and a mortgage originator.
Real estate agents play a key role in this transaction, so you must find one who has a proven track record in the industry. They should also listen to your needs and wants when it comes to the property you are looking for. Finally, they must put you first rather than the commission they will get after the transaction.
You’ll also need great mortgage originators. These professionals assist you through the application process and guide you in finding the right type of loan and mortgage terms. Like the realtor, you need someone knowledgeable and well-versed when it comes to Detroit’s home mortgage loan programs. You’ll also need someone who actively communicates with you every step of the way.
Select A Property
Finally, it’s time for you to shop around for your soon-to-be-home. This is the most exciting part of the process because you finally get to check various properties and decide what you want to buy.
To help you find the best home for you and your family, you must consider your loan pre-approval and current funds. Aside from this, you also have to consider your family’s needs and wants—in that order. Make sure that essential features can be found in the property you are eyeing. If it helps, you may also create a checklist of your negotiables and non-negotiable points before you go on your ocular tour.
As a first-time homebuyer, all of the intricacies of purchasing a home may intimidate you. For the times that you are feeling overwhelmed, however, remember that this transaction will be truly worth it in the end. On top of that, don’t forget that you can partner with professionals who will be more than happy to guide you through the transaction so you can become a homeowner in no time.
Need help with your home loan in Detroit, MI? We have got you covered! At Mortgage City, you can rest assured that we will handle your loan with speed, integrity, and the highest standards in customer care. Get in touch with us at (248) 930-8709 to schedule an appointment.