Getting the Best Mortgage as a First Time Home Buyer in Wisconsin
First time home buyers in Wisconsin are crucial to ensuring that the real estate market continues to thrive.
In fact, according to the National Association of Realtors, first time home buyers account for 40 percent of all real estate sales.
No matter where you’re at in the house hunting process, understanding your options for WI first time home buyers can help you find the best loan for you.
Finding the Right Home as a Wisconsin First Time Home Buyer
As a first time home buyer in Wisconsin, house hunting can be an exciting process. You get the opportunity to look for the home qualities that you have always dreamt of.
When it comes to choosing the right home for Wisconsin first time home buyers, however, there are plenty of factors to consider.
While looking for their ideal home, WI first time home buyers should think about the following features:
For Wisconsin first time home buyers, the location of a home is incredibly important, since it will determine whether you live in a neighborhood that is quiet, busy, young, old, family-oriented, or business-oriented.
As a Wisconsin first time home buyer, you’ll want to make sure that you thoroughly research the neighborhood before committing to a Wisconsin first time home buyer mortgage.
Depending on the neighborhood or county, the location of a home could also impact the type of mortgage rate that first time home buyers in Wisconsin receive, which is also something that Wisconsin first time home buyers should strongly consider.
Age of the Home
There’s no denying that older homes have character, but as a first time home buyer in Wisconsin, you’ll want to make sure that you are prepared for the upkeep and repairs on an older home.
If you prefer to buy an older home, make sure that you have the right expectations—and budget—to make the necessary repairs or renovations.
Space Inside the Home
This might sound like an obvious consideration to take, but many WI first time home buyers forget to consider how the space inside the home will fit into their plans.
If you like entertaining or having guests for the weekend, you’ll want to make sure that your home is spacious enough to accommodate them.
First time home buyers in Wisconsin that plan on having children will want to choose a house that has enough space, rather than having to go through the listing and selling process a few years after purchasing a home.
Additionally, WI first time home buyers will also want to consider factors like their daily commute to work, the local school district, and whether the property values in the neighborhood are projected to change.
Hidden Costs for Wisconsin First Time Home Buyers
Most mortgage lenders in Wisconsin will disclose additional closing costs in Wisconsin 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 Wisconsin should be prepared for these costs before signing off on a mortgage.
While researching your options for Wisconsin 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 Wisconsin 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 mortgages are subject to differences depending on loan amount, location, appraisal, etc., Investopedia estimates that the average closing costs in Wisconsin can include:
- $80 for document preparation
- $1,095 for origination fees
- $76 for tax services
- $423 for an appraisal
- $388 for settlement costs
- $500 for a survey
Conclusion – Getting the Best Mortgage for Wisconsin First Time Home Buyers
Buying a first home is not a quick shopping experience for first time home buyers in Wisconsin. The average processing time for a mortgage takes between 30-45 days, including the start of application to the closing.
Given this, first time home buyers in Wisconsin should be prepared for a longer processing time and create a plan to avoid unnecessary delays or extra expenses when getting a Wisconsin first time home buyer mortgage.
Additionally, Wisconsin first time home buyers could gain a significant advantage from providing a down payment that is 20 percent or more of the total home price.
Not only does this lessen the burden of a mortgage over time, but it can also make home ownership more affordable for first time home buyers in Wisconsin, since many lenders will remove the cost of mortgage insurance.
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