First Time Home Buying

Are you buying your first home?  Let Miller Mortgage, LLC help you. 

Miller Mortgage, LLC provides great service and low rates. We will be help you every step along the way, from the first step of the loan process to owning your first home.  Here's a first time homebuyer guide to help you learn about the process.  

Let us help you better understand each stage of the process through a series of Q&A.

Q: What are the benefits of homeownership for first-time buyers?

  • A: Homeownership brings many benefits. When you buy your first home, you'll become part of a community and experience the security of owning the roof over your head. As a homeowner, you will:
  • Take control: Avoid rent increases and cancelled leases while creating a home that meets your needs and tastes.
  • Build home equity: Grow your assets with the principal portion of your mortgage payments as your property value increases.
  • Get tax benefits: Deduct mortgage interest and real estate property taxes on your income tax returns. (Consult a tax advisor regarding the deductibility of interest.)
  • Build your credit: Create a strong credit history by making on-time mortgage payments.

Q: What should I consider before buying a home?

  • A: 1) Know your Budget; 2) Prioritize your Preferences; 3) Target your Territory; and 4) Calculate New Property Responsibilities

Q: What resources do you have for first-time buyers?

  • A: The best resource is a good team on your side, and we can help you build that team.  An expert mortgage broker and knowledgeable realtor and attorney will help tremendously. On your own, do some research: Ask your realtor questions regarding the property's history, school system, crime rate, and transportation.  Get a home inspection!

Q: What basics should I understand about home mortgage loans?

  • A: Since you are likely to be financing a loan for hundreds of thousands of dollars, it is crucial that you make a smart decision. A bad mortgage can significantly affect your finances over time. The good news is that there is a type of mortgage available for almost every situation. The bad news is that choosing the wrong one can cost you tens of thousands of dollars in interest over the term of the loan. We can help you make good financial decisions based on your situation.
  • The most common loans come in two styles: fixed and adjustable interest rate loans. A fixed interest loan will provide stability for you. The interest rate won't change for the life of the loan, so your payments remain stable. One benefit with a fixed rate loan is that if interest rates go up, you continue to pay your same lower rate. On the other hand, if rates go down, you may be paying more than the current rate, although it may be possible to refinance for a lower rate. With an adjustable rate loan, you sacrifice some of the stability in payments for the ability of the mortgage to adjust with prevailing interest rates. When interest rates are going down, this is can be to your benefit. But when rates are increasing, you can find yourself with a higher monthly payment.

Q: How will you evaluate my mortgage application?

  • A: We will go over the mortgage application process with you. First, we will look at your Income, Current Debts and Credit History. What Assets and Funds are available. Finally, the property will be evaluated.

Q: How can I get started as a first-time homebuyer?

  • A: Contact Miller Mortgage, LLC for a free consultation and prequalification.  We will help define a budget and time frame. Click on the Apply Now button below, call us at 877-538-7967, or email us at info@millerhomelending.com.

Q: How can I estimate what I might be able to borrow?

  • A: If you have decided that buying a home is right for you, the first step is to determine what you can afford. One of the common guidelines to use is the debt-to-income ratio. Most lenders suggest that your total debt-to-income ratio should not exceed 45%, and your mortgage debt alone should be less than 36% of your monthly income. To calculate your personal debt-to-income ratio, first add up your total monthly gross income. Once you have that figure, multiply it by 45%, or 0.45. This number is the maximum amount of monthly debt payments you should have, including your mortgage. Next, add up all of your current monthly non-mortgage debt payments and subtract it from the previous total you just calculated. This number will give you an approximate maximum mortgage payment you can afford. Ideally, this amount should be 36% or less of your monthly income. Even with these guidelines, it is important to remember that your personal situation will ultimately dictate what you can truly afford, so take all aspects of your situation into consideration.

Q: How can I find a home that meets my needs?

  • A: Make a list of what's important to you and your family, whether it is location, condition, price or certain amenities, and be prepared to make sacrifices. You're not going to find the absolutely most perfect house. If you get eight of 10 things you've prioritized, you've done very well.

Q: Should I use a realtor?

  • A: If you're looking to buy a new home, you should make sure you have a professional real estate agent on your side. A real estate agent has seen and dealt with every type of home buying situation there is and is a great asset to have. Having a buyer's agent can take additional stress off during the home buying process. Not only do they have thorough knowledge of your new neighborhood, but they also will research and schedule home showings for you, so you have one less thing to worry about!

Q: What can I expect during the homebuying process?

  • A: Please see the following steps
    1) Have a prequalification for maximum leverage

     

    A prequalification tells real estate agents and home sellers that you have been prequalified for a specific mortgage amount. Real estate agents and sellers increasingly rely on prequalifications to identify serious offers.

    2) Make an offer

    Working with your realtor, determine the appropriate amount for your initial offer based on comparable home sales, market value, condition of the home, and your closing date.

    3) Put your offer in writing

    Handle all negotiations in writing to make sure both parties understand the terms of the agreement. If you do negotiate verbally, follow up in writing.

    4) Submit a deposit

    This "good faith" deposit demonstrates commitment to the transaction.

    5) Finalize your purchase contract

    The contract is a legally binding contract between the buyer and seller describing all the terms of the transaction. The attorney, real estate agent, or title company may help negotiate and draft the contract.

     

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