If you are buying your first home, it is important to let go of any misconceptions you might have about the process. In Myths About Buying Your First Home, Part 1, we corrected several common myths regarding credit scores, down payments and student debt. Let’s dispel a few more.
There is Only One Type of Home Loan
While first time homebuyers often think “a mortgage is a mortgage,” the truth is that there are many kinds of home loans in existence. Not only that, but there are many types you as a first time home buyer may qualify for. When buying your first home, you can apply for a conforming loan, a jumbo loan, an FHA loan, a VA loan or a USDA loan. Each type of loan has pros and cons and is suitable for different scenarios. During your consultation, we can go over those with you and help you identify the right type of mortgage to buy your first home given your individual situation.
Jumbo Loans are Not Available for First Time Homebuyers.
First time homebuyers can successfully apply for jumbo mortgages. You will need strong qualifications to take out a jumbo loan, but this being your first home purchase will not hold you back.
You Cannot Apply for a Mortgage Until you Have Found the Right Home
Actually, you may want to start the mortgage application process before you have found the home you want. This gives you the chance to become pre-approved for a home loan. This will provide you with a letter that can help you negotiate successfully with sellers.
Buy Your First Home in Michigan or Beyond
MMS Mortgage Services is based in Farmington Hills, Michigan, and works with first time homebuyers in Michigan and 15 other states. To learn more about applying for your first mortgage or to buy your first home now, please call us today at (248) 788-0800 to schedule your consultation.