The Complete Guide for First-Time Home Buyers in Purvis, MS 

 August 28, 2022

By  Beth Scharwath

As a marketer, you know that buying a home is one of the most significant investments a person can make. And for first-time home buyers, the process can seem daunting. But with the correct information and tools, it doesn't have to be complicated. 

The process of buying a home for the first time can be both exciting and overwhelming. There are a lot of important decisions to make, and it is essential to be well-informed before making any commitments. Thankfully, there are plenty of resources available to help first-time home buyers in Purvis, MS navigate the process.

This post will give first-time buyers tips and cover the home buying process. Stay tuned if you're exploring homeownership—it'll be informative. 

First-Time Homebuyer Qualifications

A first-time homebuyer is someone who has not owned a home in the past three years. First-time homebuyers must meet specific requirements to get a mortgage.

1. Income

Lenders will want to see that the borrower has a steady income that can cover the cost of the mortgage payments. When qualifying for a mortgage, income is one of the most critical factors.

Lenders will want to see that you have a steady source of income and can afford the monthly payments on the loan. They may also analyze your debt-to-income ratio and monthly debt payments vs. income. 

High debt-to-income ratios make loan approval difficult. Mortgage lenders also check credit scores and work history.

A low credit score or questionable employment history can make loan approval difficult. There are initiatives to help people with poor credit get a mortgage. Talk to your lender about your options.

2. Credit Score

Lenders will pull the borrower's credit history to assess their ability to repay the loan. Higher credit scores increase loan eligibility.

A credit score is a number that lenders use to help them decide whether to lend you money. It is based on information in your credit report, showing how likely you are to repay a loan.

The higher your credit score, the more likely you will be approved for a loan with a low-interest rate. A low-interest rate means saving money on your loan payments. You can also get credit scores from some credit card companies and websites.

3. Down Payment

Most lenders need borrowers to have a down payment of at least 3-5% of the home's buy price. First-time homebuyers who meet these requirements will likely be accepted for a mortgage.

A bank requires certain conditions before approving a home buyer loan. One of the most important qualifications is the down payment. The down payment is part of the sale price the buyer pays upfront, 20% of the total cost. For example, the down payment on a $200,000 home would be $40,000. 

The down payment serves as a show of good faith by the buyer and helps offset the risk for the lender. Prospective purchasers should save early for a down payment. Doing so can boost their prospects of loan approval and homeownership.

Real Estate Agent in Purvis, MS  - First-time homebuyer mistakes and ways to avoid them

Types of First-Time Home Buyer Programs in Purvis, Mississippi

Here are a few first-time home buyer programs available in Purvis, Mississippi:

1. USDA Rural Development Loan. Available for buyers looking to buy a home in a rural area. This 100% financing package is perfect for those without a down payment.

2. Mississippi Home Corp Program. This program provides down payment help and closing cost assistance to eligible buyers. Mississippi Home Corp provides homebuyers with education and help.

3. Mississippi Housing Finance Agency. Offers low down payment and bad credit loans for first-time homebuyers. A real estate agent or lender can help first-time homebuyers.

Home Buying Process Guide

What to Do Before You Start Looking for a Home

Before you start looking for your dream home, there are a few things you should do to prepare.

  • First, determine how much you can spend on a new home. You don't want to become house-poor and struggle to pay bills.
  • Once you have a budget, you may start looking for a reliable real estate agent.
  • Before house hunting, be pre-approved for a mortgage. This will give you a clear idea of your price range and help streamline the homebuying process.

By taking these steps, you can set yourself up for success as you begin searching for your new home.

How to Find the Right Home for You

The process of finding a new home can be both exciting and daunting. With so many options on the market, it can be tough to know where to start. You can reduce your search by considering your needs and priorities.

One of the first things to think about is your budget. How much can you afford to spend? This will help you rule out either too expensive or too small homes. 

Next, think about your must-haves. What kind of features are you looking for in a home? Do you need a big backyard or a private pool? Once you have a clear idea of what you want, you can search for homes that meet your criteria. 

The best way to find a new home is by working with a top real estate agent. A smart agent will study your needs and wants and use their market knowledge to find the perfect home. Also, a good agent can negotiate on your behalf to get you the best possible price. The bottom line is that if you're serious about finding a new home, working with a real estate agent is the best way to do it.

By taking the time to do your research, you can find the perfect home for you and your family.

Home in Purvis MS

First-Time Home Buyer Mistakes and How to Avoid Them

1.   Don't overspend on your home - stick to a budget and be realistic about what you can afford. It's no secret that the cost of housing has been on the rise in recent years. 

As a result, many people find themselves priced out of the market for a new home. Yet, there are still ways to find affordable housing if you know where to look. 

One way to save money is to buy a fixer-upper. These homes often need work, but they can be great if you're willing to put in the effort. Another option is to look for homes in more rural areas. These areas have lower property values, so you may be able to find a more affordable home. 

Whatever route you choose, don't overspend on your new home. It's essential to stay within your budget to avoid financial problems down the road.

2.   Don't forget taxes, insurance, and repairs. Buying a home may seem like the only expense, but there are others.

To secure your home, you must pay property taxes and insurance. You'll also need to set aside money for repairs and renovations. All these hidden costs can add up, so it's essential to be aware of them before purchasing a home. You can avoid financial difficulty down the road by budgeting for these expenses.

3.   Don't rush into buying a home - take the time to find the right one that meets your needs. There's no denying that purchasing a home can be both exciting and stressful. But it's important to remember that rushing into a purchase can lead to regrets down the road. That's why it's always best to take your time and find the right property that meets your needs.

Of course, there are several factors to consider when purchasing a home. You'll need to consider location, size, price, and amenities. You'll find the right one by completing research and seeing many properties.

There's no right or wrong way to go about buying a home. But if you take your time and find the right property, you'll be glad you did. So don't hesitate to start your search today - it could be your best decision.

4.   Make sure you have enough money after your mortgage payment for living. One of the most significant financial decisions you make is purchasing a home. Before signing, make sure you can afford the mortgage payments. If you're not careful, you could end up in a situation where you are struggling to make ends meet. There are a few things you can do to avoid this.

  • Keep your monthly housing expenses below 30% of your monthly income. This will help ensure you have enough money left over for other expenses. 
  • Make sure you have a good credit score. A higher credit score will mean lower interest rates and easier loan approval. 
  • Save up as much money as possible for a down payment. A larger down payment reduces the amount borrowed, making monthly payments easier.

By following these simple tips, you can help ensure that you don't sign up for a mortgage you can't afford.

5.   Don't neglect your credit score - work on improving it before you start looking for a home. When it comes to financial health, your credit score is essential. Lenders use this three-digit number to assess your loan eligibility and interest rate. High credit scores show little risk, which means better loan terms, while low credit score means high-risk borrower and less favorable loan terms.

Credit scores are based on credit history, payment history, debt, and credit use. To maintain a high score, make all payments on time, keep debt low, and use little credit. Track your credit report for inaccuracies, then challenge them. These techniques can improve financial health and loan terms.

6. Research neighborhoods to find a good fit. Don't forget to research neighborhoods - make sure the one you choose is right for you. Don't focus on the apartment or house when looking for a new place to live. The neighborhood is as significant as the house.

Talk to residents, stroll around, and check crime stats to get a feel for a community. Residents can offer you a flavor of the neighborhood and daily life. Walking lets you assess the neighborhood's safety and problems (like loud construction). Crime statistics can tell you if a region is safe.

Neighborhood research is as crucial as apartment research.

The Mortgage Process

For many people, taking out a mortgage can be daunting. There are many moving parts to the process, and it can be challenging to know where to start. Understanding mortgages can make the process less frightening.

Mortgages are used to buy homes. If you default on the loan, the lender can seize the property. Most consumers pay monthly principal and interest on 15- or 30-year loans.

Loan type, credit score, and market conditions affect the interest rate. To get a mortgage, you will need to provide a down payment of 10-20% of the sale price. Once you have found a property you want to buy, your next step is finding a lender and applying for a mortgage.

The lender will then assess your application and decide whether to approve the loan. If approved, you will need to go through an appraisal process to ensure that the property is worth at least as much.

Purvis, MS Real Estate Properties

Tips for Moving Into Your New Home

So, you've finally signed the lease on your new place. Congrats! Now comes the fun part: moving in. If you're feeling overwhelmed about moving, don't worry. We've got you covered with our top tips for a successful move.

  • First, start by purging your possessions. Chances are, you've accumulated a lot of stuff over the years that you don't need. So take this opportunity to get rid of anything that's broken, out of style, or you don't use anymore. It will also help you unload and organize your new home.
  • Next, create a packing plan. This may seem like an unnecessary step, but trust us, it will save you a lot of time and headaches in the long run. Make a list of everything you need to pack, and then start grouping items together by room. This makes packing and unpacking easy.
Home Buying Process in Purvis MS - Few first-time home buyer programs available in Purvis, MS.

Questions to Consider Before You Buy

1.   What are your needs and wants in a home?

There are many things to consider when purchasing a home. First, you need to determine your needs. 

Such as, how many bedrooms and bathrooms do you need? Do you need a home office or a laundry room? 

Once you understand your needs well, you can start considering your wants. You want a large yard for entertaining guests or a private pool. You want to be close to good schools or have a short commute to work. 

You can reduce your search by considering your needs and wants.

2.   How much can you afford to spend on a home mortgage or down payment?

Before you start buying a new home, it's essential to figure out how much you can afford to spend. Mortgage, taxes, insurance, and maintenance shouldn't exceed 28% of income.

You may also need to make a down payment of 20% or more. Start by looking at your budget and debts to determine how much you can afford. Then, please consult with a mortgage lender to determine how much they're willing to lend you. With this knowledge, you can shop for a new home without overspending.

3. What is the current market like in your area - is it a buyer's or seller's market? 

Keeping up with the ever-changing real estate market trends can be difficult.

When more properties are for sale than buyers, it's a buyer's market. People are hesitant to invest when the economy is struggling.

A seller's market has more buyers than properties. During economic prosperity, people are inclined to buy.

4. Are you ready for homeownership responsibilities like repairs and maintenance?

Homeownership is a major commitment. You're responsible for the mortgage, repairs, and maintenance. This can be costly if the heater or AC breaks.

Painting and mowing the lawn are also required. You're responsible for fixing problems like a leaky roof.

Before buying a home, make sure you can handle the responsibilities. It's not easy, but it's worth it.

How will home ownership change your lifestyle, family, and retirement plans?

Consider your lifestyle and plans before buying a home. If you want to start a family, make sure the house can accommodate them.

If you're retiring, you may want to downsize. When budgeting for a new house, always include upkeep and repair costs. You'll also need to pay property taxes and insurance.

Considering these variables will help you buy a home.

6. Have you visited a real estate agent about homes in your price range and desired location?

If you want to buy a home, call a real estate agent. Agents can recommend properties in your price range and location.

Real estate agents help buyers deal with sellers and through paperwork.

Working with a real estate agent can make the process smoother and help you avoid problems.

You can also check out my blog post here for some moving tips.

Bottom Line

This article should help you fill in any home buying knowledge gaps. Knowing the procedure saves stress and boosts the chances of finding an inexpensive home. After a significant change, you'll feel confident.

If you're looking for a great place to live as a first-time homeowner, Purvis, MS, should be at the top of your list! 

Keller Williams Realty can assist you in purchasing your desired new home. Contact Beth Scharwath at 601-606-3001 / 601-819-0399 or email at bscharwath@gmail.com.

In case you can not view this video here, please click the link below to view The Complete Guide for First-Time Home Buyers in Purvis, Mississippi | RE/MAX Real Estate Partners on my YouTube channel: https://www.youtube.com/watch?v=GHeabmF5w_E

Beth Scharwath

I've been a full time real estate agent in the Hattiesburg area since 1996.

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