What Is Private Mortgage Insurance (PMI) and How Does It Work?
For a first-time homebuyer financing a new home build can be intimidating. You probably have loads of questions, and before you scour the Internet and decipher which “financial pro” has all the answers, we’ve created a simple guide from our internal financing team.
Why listen to their advice? Because they really care.
Our M/I Financial, LLC (MIF) Team ensures that all your important financial questions are answered and you are put at ease during the process.
What You Need to Know About Financing a New Construction Home
So how do you finance a new construction home? To make your first home buying process a little easier, we have put together the essential financial steps to buying your first home so you know exactly what to look at before purchasing.
Committing to these will not only alleviate your financial burden in the future, but will also make the whole process seamless and stress-free, getting you into your new home before you know it!
- Stick to your budget: Determine your debt to income ratio and cash flow to understand your true monthly comfort level.
- Have a savings plan: Start saving early for your down payment, earnest money deposit, and moving expenses.
- Pay debt on time: Make sure you have a consistent payment history (yes, that means tightening your belt and paying off your credit cards or car payments!).
- Keep credit cards open: Thinking of closing a credit card before you go purchase a home? STOP! Canceling your credit cards will bring your credit score down, so simply make your payments on time.
- Manage student loans: Consider paying down those lingering student loans to improve your financial profile.
- Work with an experienced Mortgage Associate: Find a professional who acts as an advocate and works closely with you to save on your mortgage rate.
- Create your home wish list: Build a wish list focusing on your needs. How many beds and baths do you need? Where do you want to live? What are nice-to-haves versus must-haves?
- Save important financial documents: Keep your W-2s, pay stubs, and any documents tracking your down payment sources organized and ready.
Understanding Your Mortgage Credit Score vs. Consumer Credit Scores
Viewing your credit score from a third-party company is great! However, when it comes to viewing your credit score on a mortgage level, it can be very different. Mortgage level credit scores tend to be below what a third-party company shows.
With our M/I Financial Team, you will have the option for various payment methods that fit your comfort level, whether it be regarding a higher mortgage rate or what type of down payment you can afford.
Our team will also be here to help you learn how to get pre-approved for a new build during the early steps to buying a home for the first time.
Why Choose Our New Build Lender Team?
So, why choose MIF for your financing experience for your new build home? Here are a few of the many builder financing incentives and benefits you’ll find with us.
- You can stretch your buying power with various incentives and options
- With a 96% Customer Satisfaction rate, you’re sure to love working with each member of the M/I Financial team
- Enjoy peace of mind while building your dream home with a Protected rate program
- M/I Financial works closely with the builders to get in your home on time
- Expert staff with decades of experience makes sure your experience is effortless
- Because M/I Financial works closely with M/I Homes, we can lessen your stress by shortening the time between approval and construction
- M/I Financial puts all their focus on the buyer to make sure your experience is as tailored to you as possible
Take a breath of relief! Your new home is in good hands. We’ll be here for everything you need, and we’ll always treat you right. Learn how to apply for pre-qualification today.
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