Are you Ready to Buy Your First Home?

Are you Ready to Buy Your First Home?

Are you Ready to Buy Your First Home?

Homeownership is the American dream, but to make that dream come true, you must be prepared. Buying a first home isn’t like other purchases; there are preparations to make well ahead of time. Here are some things to take care of in the months leading up to your home purchase.

Is It Time to Stop Renting?

Not everyone should be a homeowner. You should consider buying only when you are certain that you’re settled in your current job and town or city. The reason is that you’ll want to stay in your home for several years to ensure that you’re there long enough to build equity.

Credit report with score on a desk

Is Your Credit Ready to Buy Your First Home?

Lenders scrutinize credit scores and credit reports before granting a mortgage. Obtain a copy of your credit report from all three bureaus and find out what your credit score is. Raising your credit score takes time, so start this process as early as possible. Pay off debt as well as any outstanding collections. Fact check everything and file disputes if you find erroneous information. The higher your score is, the better the interest rate you’ll qualify for on your mortgage.

Find Out How Much You Can Afford

Stay within your price range when searching for homes to buy. You can use affordability calculators to see how much lenders might offer you based on your outstanding debt and income. However, remember that you don’t necessarily want to buy the most expensive home that you can qualify for. In addition to the monthly mortgage payment, you must also budget for property taxes, insurance and maintenance and unexpected repairs.

Learn How to Negotiate in a Seller’s Market

When inventory is low, it’s considered to be a seller’s market. This often means that potential homebuyers face a lot of competition from other buyers in the market. You and your real estate agent will need to get creative to ensure your offer stands out. You might need to consider offering above the asking price, including a personal note, or offering to buy “as-is” without a property inspection.

Be Prepared With Extra Funds

The closing table can be an unexpected — and unpleasant — surprise for first-time homebuyers. The reason is that sometimes extra funds are needed to close the deal. In addition to your down payment, you may need extra cash for last-minute costs that only come up on the day of closing. Be sure to have liquid assets, and be sure to bring your checkbook to the closing table!

Learn How to Choose a Good Home

When looking for a home to buy, don’t let surface deficiencies distract you. Don’t worry about things like paint colors or old carpeting; these are easily changed. Instead, consider location, structure and layout. These are the things that can’t be changed once you buy your home.

You should begin preparing to buy your home well in advance. Arm yourself with a great credit score as well as knowledge about how the homebuying process works. Think you’re ready? Take our quiz to see if you’re ready to buy your first home!


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Mortgage Investors Group, based in Tennessee, offers residential financing in a number of states in the southeast, See MIG Service Areas. Terms and conditions to apply to home financing. We want to share with you the loan terms vary based on several characteristics and your financial profile. These include but are not limited to loan program, loan purpose, occupancy, credit history, credit score, assets, and other criteria per loan type. The repayment terms and interest rate may vary from time to time. The terms represented here are based on certain assumptions outlined below and/or noted on the loan outline page. Additional details concerning privacy, program disclosures, licensing specifics may be found at Legal Information.

MIG Loan Officers will help gather the information needed for an individual assessment to provide home financing which matches the loan characteristics with your home financing needs based on your financial profile, when you are ready to begin a full loan application. For estimates and general information before that step, the basis for which the mortgage financing information are as follows:

  • Rates are subject to change at any time.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Payments will vary based on program selection, current rates, property location, etc.
  • Not all programs are available in all states.
  • Some loan programs may not be available to first time home buyers.
  • Terms and conditions apply, which may include restrictions or limits per loan program.
  • Information is generally based on primary residence occupancy with no cash out when refinancing.
  • Unless otherwise stated, terms shown are estimates based in part on credit score of 700 or higher; owner occupancy, escrow account is established for taxes and insurance(s); debt-to-income ratio no higher than 43.0%; PMI applies to conventional loan programs over 80.0% LTV; VA,FHA & RD require insuring fees included in loan and/or payment; fixed rate, 30 year term.

An MIG Loan Officer is available to help with your financial details to determine which characteristics apply to your situation for a personalized look into which loan program best fits your home financing needs. Please use the Find a Loan Officer link or reach out to Mortgage Investors Group at 800-489-8910. Equal Housing Lender 1.2020