Getting the Best Mortgage as a First Time Home Buyer in Mississippi
Mississippi home values are steadily increasing, a trend which is predicted to continue throughout the next year.
According to Zillow, the median home value in the state is currently $114,300, marking a slight increase of 3.1 percent within the past year.
For first time home buyers in Mississippi, the best time to purchase a home may be now, as home values are predicted to increase by nearly 4 percent within the next year.
As home values and listing prices continue to rise, the best way to ensure that homeownership remains affordable over the long-term is by finding the best loans for Mississippi first time home buyers.
How Much House Can a First Time Home Buyer in MS Afford?
For first time home buyers in Mississippi, affordability is much more complicated than simply finding out how large of a mortgage you can get approved for.
Mississippi first time home buyers will also have to take into consideration additional affordability factors, like the closing costs of purchasing a home, monthly budget, and debt-to-income ratio.
Visit any of the Mississippi first time home buyer calculators below to analyze factors like location, household income, down payment, and monthly debt.
Hidden Costs for Mississippi First Time Home Buyers
Most mortgage lenders in Mississippi will disclose additional closing costs in Mississippi that come within the first stages of homeownership.
To ensure that the first few months of homeownership are as manageable as possible, first time home buyers in Mississippi should be prepared for these costs before signing off on a mortgage.
While researching your options for Mississippi first time home buyers, it’s helpful to consider the following “hidden costs” of mortgage rates:
- Mortgage application fees (typically 1-2 percent of the total purchase price)
- “Good faith deposit” (helps the seller know that you intend to buy)
- Down payment (20 percent of the total mortgage)
There are also closing costs in Mississippi to consider, which can include a wide range of expenses from:
- Mortgage points
- Attorney’s fees
- Inspections or surveys
- Title insurance
- Escrow deposit
- City recording fees
Although all Mississippi mortgages are subject to differences depending on loan amount, location, appraisal, etc., Investopedia estimates that the average closing costs for a Mississippi mortgage range between 0.9-1.0 percent of the total price.
First Time Home Buyer Grants in Mississippi
Aside from the mountains of paperwork and lists of financial jargon, many first time home buyers in Mississippi find that coming up with enough money for a down payment is the biggest challenge when obtaining a mortgage.
Thankfully, there are plenty of first time home buyer grants in Mississippi that are meant to help ease the stress of saving up for a down payment.
Below, you can find a list of the MS agencies offering first time home buyer grants in Mississippi that a first time home buyer may be able to benefit from.
- Mississippi Home Corporation—Provides down payment and closing costs assistance for eligible first time home buyers in Mississippi
- USDA Rural Development Office—Supports Mississippi first time home buyers purchasing a home in rural communities
- Mississippi State Community Action Agencies—Provides county-specific information on first time home buyer grants in Mississippi
- Home Ownership Vouchers—Allows Section 8 tenants to apply their rental vouchers towards a mortgage as a first time home buyer in Mississippi
Conclusion – Finding the Best Mortgage as a First Time Home Buyer in MS
As a first time home buyer in Mississippi, you have plenty of options for mortgage products, rates, and programs.
The key to finding the best mortgage as a first time home buyer in MS is doing your own research to ensure that you are finding the products for Mississippi first time home buyers that align with your personal financial needs and goals.
For many first time home buyers in Mississippi, this means evaluating multiple lenders to find the best rates and terms for Mississippi first time home buyers.
After all, affordable and manageable mortgages are determined not just by monthly payments, but also by interest rates and terms for Mississippi first time home buyers.
As such, don’t be afraid to shop around until you find the best mortgage rates and products for a first time home buyer in Mississippi.
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