MUD Taxes: Understanding the Charges (and benefits!) When Buying in a MUD
Are you searching for the home of your dreams? Is this the first time you’ve purchased a home? Are you ready to take the leap into homeownership but don’t know where to start?
Don’t worry: we have you covered! We know that purchasing a home, especially for the very first time, can be a daunting task.
You probably have a ton of questions, and we’re here to tell you that you are not alone! At M/I Homes, we strive to make sure all of our customers are comfortable, informed, and armed with the tools they need to make their big decision.
We created a Home Buying 101 Virtual Seminar* that gives you:
- A background knowledge of who we are as a company
- Our home buying and building process
- How, when, and where to apply for a loan through M/I Financial (MIF)
- Additional resources such as Welcome Home Club (WHC) credit repair and other tools you may be interested in!
Keep reading below to see what questions other buyers just like you asked during this seminar.
If I can’t qualify for the sales price that I apply for, will the loan officer tell me what I do qualify for?
Yes, if you apply for $300K but we can only qualify you for $270K, for instance, we will go through that process with you and find options in the range that you qualify for.
Do you work with first-time homebuyer programs?
Yes, we have a number of different programs to help first-time homebuyers, from both the builder side and the financial side of the process.
What should my credit score be?
It depends on which program you are applying for. Once we pull your credit we’ll tell you which programs you qualify for and if we think you should be enrolled in Welcome Home Club.
How often does WHC contact their clients?
As often as needed. Long term plans are about once a month, but it depends on urgency of the plan, length of the plan, etc.
How long does it take to hear back from a loan officer once I complete the application?
If you fill it out in the morning, you should hear back within 1-2 hours. If you fill it out in the evening, we will work on it first thing the following morning.
Can we still enroll in the Welcome Home Club to improve our scores even though we have already qualified through MIF?
Yes, if you have qualified and you’ve gotten your rate, etc., but we have time to increase your scores, we will definitely create a plan for that.
Will M/I Homes extend closing dates for the buyer if they have not met WHC plan on time, but the buyer did everything he or she was told to do within WHC plan?
Yes, we are able to extend the closing date. This is one of the biggest benefits of working with M/I Homes and M/I Financial.
How does changing your job in the middle of the home buying process affect your ability to buy/build a home?
If you are doing the same job, (teacher going from one district to another) we would need your offer letter and first pay stub. It depends on which job you are leaving and which job you are going to. If you are making a W2 income and change to a 1099 income, that can create issues because it is a different type of calculation.
What is the best way to apply with MIF?
Online application: they alert the loan officers right away once completed. You can also call us, and we can take your info over the phone.
Does using a first-time homebuyer program tend to increase the initial interest rate?
Not typically. There are some bond programs where the rates are just as low as other programs, so it does not mean you will have a higher rate.
Have any rules/regulations changed since COVID-19 started with buying a home?
Not necessarily rules, per se, but we do have procedures in place to ensure the safety of our guests. We do require masks when meeting onsite, we have sanitizing stations onsite, we do a screening beforehand, etc. We do have virtual tours, zoom meetings, and other virtual tours if you would rather not meet in person.
If we have already qualified but we have a change in income (higher income), how do we report and how will it affect our qualification?
If you are already qualified and you are making MORE income, it wouldn’t affect you or your program unless you are wanting to qualify for a new program that you couldn’t previously qualify for.
How do we enroll in WHC?
Your loan officer will forward your file to WHC, then WHC will review it and create a program for you, then you will be enrolled.
If you decide to use WHC but then decide to back out of buying an M/I Home, what will those fees be, and are you obligated to buy from M/I while you are enrolled in WHC?
No, you are not obligated to buy with M/I, but if you cancel your contract, we would withdraw you from WHC. Once you have the plan, you get to keep it. The goal is to purchase an M/I Home and benefit from MIF, and for our buyers to be happy.
How do 2 people apply for a loan—does each person have to apply separately?
The first person will fill it out and put a co-buyer’s email. Once the first person is done a link will be sent to the second person to fill out their section. Once the application is completed it automatically alerts the loan officer at MIF.
How do I find out what my mortgage payment will be?
MIF will give you that information when you get pre-approved.
If a buyer is already qualified but still wants to take part in the WHC, does he or she just ask the loan officer to forward to WHC?
Yes, when WHC has time to raise your scores, they will absolutely enroll you.
When working with WHC but not under contract with M/I Homes, how much engagement will the buyer have with WHC?
WHC will still connect with you once a month, but they are always available if you have questions at any time.
If I am prequalified with a different lender but want to switch to MIF, how will that effect my credit score?
If you don’t have a lot of inquires it won’t affect your score much. If it is within 2-3 weeks, it won’t affect your score at all. If you are buying a to-be-built home, you have time to recover from the dock in points anyway.
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We hope that any questions you may have had before this guide were answered and that you are now a home buying expert!
If you have additional questions or didn’t find the answers you were looking for, we are here to help! Reach out to our team today for more information.
We are always working to improve our communication and the resources we have to offer, so be on the lookout for additional questions and answers as they come our way—we’ll add them to this post to ensure that all questions are kept in the same place!
*This information is specific to the San Antonio region and is subject to change. Offers, incentives, programs, and other information mentioned in the above may not be available in other areas.
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