Preparing Your Finances for Home Buying

Family with New Home

If you’ve been looking for a new house or are a first-time homebuyer, you may have experienced some challenges during your search. A recent article from TheMReport.com, a mortgage banking publication, states some homebuyers are facing a limited housing inventory, which can make it difficult to find the ideal property. Low inventory levels can also lead to potential bidding wars, which can prolong the process or force buyers to search for a different home.

Another issue is affordability, and some buyers might be having trouble finding the right home at a price point within their budget. While inventory levels and home prices are not something you can control, you can review your finances to ensure you’re ready to act quickly when you find the perfect home. Here are some tips:

  • Get pre-qualified before you start house hunting – This means you’ll know how much home you can afford and which mortgage program(s) best fits your needs.
  • Know your personal finances – Reviewing finances prior to talking with a lender can help speed up the process when you seek financing to buy a home.
  • Understand all the costs involved with a new mortgage – While your monthly payment is a vital part of your mortgage, you’ll also be responsible for insurance, property taxes and lender fees, which your lender will help you understand.

If you’re thinking of buying a home, or looking to refinance your mortgage, Michigan First Mortgage is here to help. Call us at 877.312.9033 or email us.

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