Buying a home will always be a momentous chapter in your life. Here’s a few resources that we hope will help make that life choice a little bit easier.
Consulting to figure out your housing needs can be difficult and stressful. Michigan State Housing Development Authority (MSHDA) has an extensive network of HUD-certified housing counselors that assist individuals with financial literacy, housing education, or community disaster relief services. Additionally, finding a lender that compliments your housing and financial needs (such as interest rates) would be a proper step into finding a home.
A reasonable purchase price for a down payment is roughly 20 to 30%. So you have to make sure to save in order to capture your ideal home. Although government backed loans and first time buyers can find opportunities for down payment assistance for example the state of Michigan offers up to 10K in downpayment assistance.
Make sure to know the two common loan types. A fixed-rate mortgage has the same interest rate for the duration of the loan, so your monthly payment will always be the same. Loan terms range from ten to thirty years. In contrast, an Adjustable-Rate Mortgage (ARM) begins with a lower fixed interest rate that is subject to increase after a set number of years, such as five. If you plan to move within the next few years, the lower upfront fee could save you money. This may allow you to be eligible for a larger loan.
The Michigan Schools and Government Credit Union (MSGCU) truly cares about Michigan home buyers and intends to help you, every step of the way. From talking to a consultant, to learning more about the homebuying protocols, organizing free ‘Homebuyer Workshops’, and more.