Welcome to Homeownership
Buying your first home is exciting and can feel overwhelming. This guide breaks down everything you need to know, from programs designed for first-time buyers to what to expect at every step.
The Home Buying Journey
Here's what to expect from start to finish, typically 6-10 weeks total
Get Pre-Approved
Know your budget before you start looking. This strengthens your position with sellers.
Find Your Agent
Partner with a buyer's agent who will represent your interests throughout the process.
Search for Homes
Work with your agent to find properties that match your needs and budget.
Make an Offer
Submit a competitive offer with appropriate terms and contingencies.
Due Diligence
Complete inspections, appraisal, and finalize your loan.
Close & Move In
Sign final paperwork, get your keys, and celebrate your new home!
Common Misconceptions, Debunked
Don't let these myths hold you back from homeownership
Myth:
I need 20% down to buy a home
Reality:
Many loan programs require as little as 0-3.5% down. First-time buyer programs often have even more flexible terms.
Myth:
I should wait for the "perfect" time to buy
Reality:
There's rarely a perfect time. If you're financially ready and plan to stay a few years, buying usually makes sense.
Myth:
Renting is always cheaper than buying
Reality:
While renting has lower upfront costs, buying builds equity. Over time, homeownership often becomes more affordable.
Myth:
I can't afford to buy with student loans
Reality:
Many buyers have student loans. Lenders look at your debt-to-income ratio, not just total debt.
Michigan First-Time Buyer Programs
Take advantage of programs designed to make homeownership more accessible
MI Home Loan
Low-interest mortgages for first-time buyers with down payment assistance options
MSHDA DPA
Michigan State Housing Development Authority down payment assistance
Rural Development (USDA)
Zero down payment loans for eligible rural areas (much of Marquette County qualifies!)
FHA Loans
Federal Housing Administration loans with lower credit requirements
Pro Tip
Program requirements and availability change frequently. I stay up-to-date on current offerings and can connect you with lenders who specialize in first-time buyer programs. Let's discuss which options might work for your situation.
Emotional Preparation
Buying your first home is an emotional journey. There will be excitement, anxiety, and maybe some disappointment along the way. Here's what to expect:
- You might not get the first house you fall in love with
- The "perfect" home doesn't exist, but the right one does
- Buyer's remorse is normal and usually temporary
- Trust the process and your support team
Think Long-Term
Your first home is just that, your first. It doesn't need to be your forever home. Focus on building equity and gaining experience as a homeowner. Most people stay in their first home 5-7 years before moving up.
Your Pre-Purchase Checklist
Get these items in order before you start house hunting
First-Time Buyer FAQs
How much should I save for a down payment?
While 20% down avoids PMI, many first-time buyer programs require as little as 3-3.5% down. USDA and VA loans offer 0% down options. Save what you can, but don't wait for 20% if you're otherwise ready.
What credit score do I need to buy a home?
FHA loans accept scores as low as 580 with 3.5% down (500 with 10% down). Conventional loans typically require 620+. The higher your score, the better your interest rate.
How long do I need to be employed to qualify?
Most lenders want to see 2 years of steady employment history. Job changes are okay if you're in the same field or advancing your career.
Should I rent or buy?
If buyers plan to stay 2+ years, can afford payments, and have stable income, buying often makes sense. Two years is the capital gains threshold, and the Marquette market typically supports enough equity gain to justify and profit a seller in that timeframe.
What's included in my monthly mortgage payment?
PITI: Principal (loan balance), Interest, Taxes (property tax), and Insurance (homeowner's and possibly PMI). Your lender can provide accurate monthly estimates.