Getting Started as a First-Time Homebuyer

Congratulations on considering purchasing your first home in Wisconsin! As a first-time homebuyer, it’s essential to understand the process and available resources to make your dream a reality. Here’s how to get started on the right foot:

First, check your credit score and history to determine your eligibility for a mortgage. You can request a free credit report from the three major credit bureaus—Experian, TransUnion, and Equifax—and review it for any errors or discrepancies. A good credit score can significantly impact the interest rate and terms of your loan.

Next, gather all necessary financial documents, including pay stubs, bank statements, and tax returns. This will help you understand your budget and determine how much you can afford to spend on a home. Knowing your financial standing is crucial for setting realistic expectations and avoiding potential pitfalls.

Finally, research and explore different mortgage options, such as fixed-rate and adjustable-rate loans, to find the best fit for your financial situation. Each type of loan has its pros and cons, and understanding these can help you make an informed decision. At Joonago Mortgage Services, we can guide you through this process and help you find the loan that best suits your needs.

Navigating the Home Buying Process for Prospective Homebuyers

Buying your first home can feel overwhelming, but with the right preparation, it’s an exciting journey. Here’s a roadmap to get you started:



1. Assess Your Finances: Before you begin house hunting, determine your budget. Factor in your income, savings for a down payment, and monthly expenses. A good rule of thumb is to aim for a mortgage payment that’s no more than 28-30% of your gross monthly income. At Joonago Mortgage Services, we can help you crunch the numbers and explore loan options tailored to your situation.
2. Get Pre-Approved: A mortgage pre-approval from a trusted lender is a must in a competitive market like Elm Grove. It shows sellers you’re serious and gives you a clear idea of what you can afford. We’ll work with you to review your credit, income, and assets to secure the best possible terms.
3. Explore Assistance Programs: Wisconsin offers several programs to ease the financial burden for first-time buyers. The Wisconsin Housing and Economic Development Authority (WHEDA) provides affordable mortgage options, including the WHEDA Advantage Conventional loan with a minimum 3% down payment and the WHEDA Advantage FHA loan with a 3.5% down payment. WHEDA also offers down payment assistance (DPA) programs like Easy Close DPA, which provides up to 6% of the purchase price as a second mortgage, and Capital Access DPA, offering $7,500 with no interest or monthly payments. These can be game-changers for buyers short on cash. These programs often work with participating lenders to ensure you receive the necessary funding.
4. Understand Local Market Trends: Elm Grove’s market is dynamic. Prices have risen about 7% over the past year, reflecting strong demand. Working with a local real estate agent who knows the area can help you find the right home at the right price.
5. Complete Homebuyer Education: Many programs, including WHEDA’s, require first-time buyers to complete a homebuyer education course. These courses cover the basics of the buying process, budgeting, and home maintenance, equipping you with the knowledge to succeed as a homeowner.
   

First-Time Homebuyer Programs in Wisconsin

Wisconsin offers various first-time homebuyer programs to help with down payment and closing costs. These programs can be used in conjunction with other forms of assistance, such as FHA loans or VA loans. Here are some popular options:

• WHEDA Advantage Conventional Loan: Offers a 30-year fixed-rate mortgage with reduced mortgage insurance premiums, making it an attractive option for first-time buyers.
• WHEDA Advantage FHA Loan: Provides a 30-year fixed-rate mortgage with reduced mortgage insurance premiums, ideal for those who may not qualify for conventional loans.
• WHEDA Easy Close Down Payment Assistance Program: Offers up to six percent of the home’s purchase price in a 10-year fixed-rate second mortgage, helping to cover the initial costs of homeownership.

These programs are designed to make homeownership more accessible and affordable for first-time buyers. By taking advantage of these options, you can reduce your upfront costs and make your home purchase more manageable.

Down Payment Assistance Options

Down payment assistance programs can be a game-changer for first-time homebuyers, helping to cover the upfront costs of purchasing a home. In Wisconsin, there are several options available:

• WHEDA Capital Access Down Payment Assistance Program: Provides up to three percent of the home’s purchase price in a 30-year fixed-rate second mortgage with zero percent interest and no monthly payments. This can significantly reduce the financial burden of your down payment.

These programs are designed to help prospective homebuyers overcome the financial barriers to homeownership. By exploring these options, you can find the support you need to make your dream of owning a home a reality.

Tips for Success in Elm Grove

• Act Quickly: With homes selling faster than the national average, having a pre-approval from a reputable mortgage lender will give you an edge when you find a property you love. Your pre-approval will give you an edge.
• Consider Your Down Payment: While 20% down avoids private mortgage insurance (PMI), many first-time buyers opt for lower down payments (3-5%) through programs like WHEDA or conventional loans. We can help you weigh the pros and cons.
• Look Beyond the Price: Elm Grove’s value isn’t just in the home itself but in the lifestyle it offers—great schools, community events, and a serene environment. Factor these into your decision.

Budgeting for Homeownership

As a first-time homebuyer, it’s essential to create a budget that accounts for all the costs associated with homeownership. This includes:

• Mortgage payments: Your monthly loan payments, which will be a significant part of your budget.
• Property taxes: These vary by location and can add a substantial amount to your monthly expenses.
• Insurance: Homeowners insurance is necessary to protect your investment.
• Maintenance and repairs: Regular upkeep and unexpected repairs are part of owning a home.
• Utilities: Monthly costs for electricity, water, gas, and other services.

Consider using the 28/36 rule to determine how much you can afford to spend on a home. This rule suggests that your housing costs should not exceed 28% of your gross income, and your total debt payments should not exceed 36% of your gross income. By following this guideline, you can ensure that your home purchase is financially sustainable.

Local Resources for First-Time Homebuyers

Wisconsin has a range of local resources available to support first-time homebuyers. These include:

• WHEDA: Offers a range of programs and resources for first-time homebuyers, including down payment assistance and mortgage financing options.
• Local non-profits: Organizations such as the Wisconsin Housing and Economic Development Authority (WHEDA) and the Wisconsin Realtors Association offer education and counseling services for first-time homebuyers.
• Mortgage lenders: Many mortgage lenders offer specialized programs and resources for first-time homebuyers, including low-down-payment options and competitive interest rates.

By taking advantage of these resources and programs, you can make your dream of homeownership a reality in Wisconsin. These organizations and lenders are here to help you navigate the home buying process and find the support you need to succeed.

How Joonago Mortgage Services Can Help as a Mortgage Lender

At Joonago Mortgage Services, we specialize in helping first-time buyers navigate the mortgage process with confidence. Whether you’re exploring WHEDA loans, conventional mortgages, or down payment assistance, I’m here to find the best fit for your needs. We’ll guide you from pre-approval to closing, ensuring you understand every step and secure a mortgage you can afford long-term.

Elm Grove is more than just a place to live—it’s a community to call home. If you’re ready to take the leap into homeownership, contact me at Joonago Mortgage Services today. Let’s turn your dream of owning a home in Elm Grove into a reality!