There are many benefits to owning your own home, and MidCountry Mortgage has the professional, supportive way to get you there.
There's No Place Like (Your Own) Home
Owning your home is more than just a dream for many people; it's a reality that they have attained. Here are several great reasons why they decided to buy a home:
Historically, real estate generally appreciates (increases in value) over time. This is primarily due to its gaining economic value over time with housing market increases. There are many personal reasons, too, for which your own home is an "appreciated" asset!
Mortgage Interest Deductions
Mortgage interest (the largest component of your monthly mortgage payment) maybe fully deductible on your tax return, if the borrower itemizes their deductions. This means that you might be able to subtract the amount of your interest payment from your gross income to reduce the amount of taxable income.
Equity is the difference between your loan amount and the value of your home. For instance, for every dollar you spend toward paying off your home, a percentage goes toward building equity. Also, you may find the amount of money you spend monthly on a mortgage payment is less than monthly rent payments!
MidCountry Mortgage Has Your Home Loan Experts
MidCountry Mortgage is your first-time home buying consultant. We realize the importance of the big step you're taking, and we are here to support you every step of the way. Our mortgage team is here for you with up-to-date information, helpful tips, and useful planning tools for your exciting journey.
You're ready to purchase your own home, where do you start?
Choosing the right mortgage lender is a critical part of your home buying plans; a professional lender with a proven record of excellence and customer care is the right way to go. MidCountry Mortgage can offer such attributes, and much more.
Pre-qualification is where your journey begins.
When you first contact your MidCountry Mortgage consultant, he or she will look into financial information that includes your income level, savings, time on the job, and what kind of debt you have. With this information, your consultant will know what loan options are most beneficial for you.
Provided as a complementary service by MidCountry Mortgage, pre-qualification can educate, favorably, homebuyers who believe they can't qualify for a mortgage because they "simply can't afford it." The good news is that pre-qualifying for a mortgage, with the help of your consultant, will open your eyes to the fact that there are many types of mortgage loans that offer opportunities that you can live with comfortably. There are many instances, in fact, where the price differential between rental payments and monthly mortgage payments is minimal—a very pleasant surprise for "first-timers" and "return buyers" alike!
Lenders Look at the Big Picture
MidCountry Mortgage will work with you to discover the "big picture" of your mortgage plan. The underwriter of your loan will review your overall financial history (including savings and credit history) and your job stability. (This also applies if there is a co-signer on the loan.) The simple question the underwriter wants to answer through this process is whether you are a reasonable risk—if you'll be able to pay off your mortgage by the end of its term.
Should it happen that you do not qualify for a mortgage currently, MidCountry Mortgage wants to keep working on a professional relationship with you; we will stay in contact with you and offer guidance on when you should try again, depending on your situation.
Working with You to Bring You Home
MidCountry Mortgage consultants know that in today's complex world, sweeping life changes are a common phenomenon. Divorce, child support payments, bankruptcy, and unexpected shifts in the economy add to this scenario. Our consultants want to work with you through these challenges by offering mortgage products with little down and manageable monthly payments.
Getting Your Mortgage Right: The Bigger Plan
Here's a quick list of mortgage types available to you at MidCountry Mortgage:
- Fixed Rate-A mortgage with a typically common term (payment period) of 15 to 30 years; where your payment is fixed for the term you choose, until you decide to refinance.
- Adjustable Rate (ARM)-A mortgage with a changeable interest rate, according to a pre-agreement schedule.
- FHA, VA and RD (USDA Rural Development)- Government-backed loans with low-to-no down payment requirements and less restrictive debt-to-income ratios (DTI). FHA (Federal Housing Administration) mortgages require a down payment of 3.5%; VA (Veterans Administration) mortgage loans offer veterans and active military personal great interest rates with zero down payments; and the RD, or Rural Development mortgage loan, offers up to 100% of the appraised value of the home, which means there is no initial down payment required.
- 203k-An FHA 203k Rehabilitation program is extremely popular, as it allows the borrower to have professional contractual improvements completed on the property, using the mortgage to pay for it, which means no out-of-pocket expenses for the homebuyer. 203k Rehabilitation Loans allow for improvements that range from relatively simple modifications, to the near-complete tear-down of an existing structure, while preserving some portion of the original foundation. The 203k offers up to 96.5% of the appraised value of the property. Please see our MidCountry Bank Product Guide for more details.
Lining up your budget, wish-list, real estate agent, etc. are good preparation measures for a smooth house hunting experience.
The following are key "to-do's" to consider before buying your new home.
Your mortgage will likely be the largest payment you make each month. Before jumping into a new home, you'll want to do your homework to see what you can afford without significantly changing your style of living. First, sit down and track all of your expenses. You will want to base your budget off of this number. A good rule of thumb is that your home and home-related expenses, such as utilities, shouldn't exceed 30% of your total income.
Make a Wish List
Once you know what you can afford, it's time to determine what you want. Make a list of everything that you'd like in a new home.
Finding Your Realtor
During your first home search, a good realtor can make all the difference. He or she can help you to find the home you're looking for, tell you what it's worth compared to other homes in the area, and be an educated advocate for you during negotiation. Your MidCountry Mortgage expert will be glad to refer you to a reputable realtor.
Buying your first home can be a little bit easier if you take the time to think about how ready you are to commit. Job and credit stability, what you can comfortably afford, and what kind of community and maintenance level you prefer will confirm your priorities.
Asking the right questions when buying a home will help make your experience flow more smoothly.
The following are some key questions to ask yourself (and others) prior to buying a new home.
What Type of Community Do You Want?
Consider where you want to live: parks, crime rate, schools, and taxes. Is it important to live in a community with people who reflect your own age, income and stage of life?
What Are My Priorities?
In addition to your community, what else is important to you in your first home? Should it be move-in ready or are you ready to fix it up? How many cars do you want in the garage? Do you want a garage? Do you want a yard to maintain, or would you prefer to buy a townhouse that offers maintenance-free living ?
What First-time Homebuyer Programs Are Available?
There are many programs available for first-time homebuyers that can affect your required down payment, terms, and rates. Your MidCountry Mortgage consultant will help you find the program that best fits your needs and personal situation.