Tuesday, June 6, 2023
HomeBusinessBenefits of getting a mortgage loan for your first house

Benefits of getting a mortgage loan for your first house

Buying your first home is a big step, but it’s also exciting. You can finally settle down, make a family and start building equity. That said, buying your first house comes with many risks—you might not be able to afford the mortgage payments, or you could end up with a vast renovation bill if the place needs repairs. However, there are benefits to getting a mortgage loan from a mortgage lender in Michigan for your first house as well that can help ease these concerns and make the process more manageable:

The mortgage lending industry in Michigan has grown exponentially in the last decade. As per the Federal Reserve Bank of St. Louis, the total amount of mortgage loans originated by banks increased by nearly $72 billion between 2014 and 2015, an increase of over 22%. This growth is likely due to a combination of factors:

  • The rising number of young people who are non-disabled and have stable employment prospects has caused a rise in homeownership among this demographic.
  • More people are moving to Michigan from other states, many needing mortgage loans to purchase homes as they relocate.
  • The housing market in Michigan has been steadily improving since 2014, which has increased housing demand and boosted the need for mortgage loans.

You get the actual house you want

As an established homeowner, you have more flexibility in choosing a home. You can afford the house with all the desired features and amenities, whether a more oversized yard or an open floor plan. You may even choose to live in a neighbourhood where homes are more significant and newer than your current area.

With this increased freedom comes some additional responsibility as well. If you buy a home within your budget but still keep your eye on other options because they’re just too many houses for what you need, chances are good that one day soon, when interest rates rise, or housing prices fall—or both—you might regret passing up such a great opportunity.

Build your credit

If you are interested in buying a home but have limited or no credit history (for example, your only credit experience is with student loans), you may find that getting a mortgage loan is more complicated than expected. However, this does not mean that it’s impossible.

The mortgage lender in Michigan can use other factors to evaluate your application and determine whether you are a good candidate for the loan. For example, keeping your bills up-to-date and paying them on time for several years will build your credit score.

There is no landlord to answer to

You can stay in your house as long as you want and have the freedom to modify your needs. If the kitchen needs to be more significant for the number of people eating there, or if the bathroom needs more space for those who will be using it, then it’s up to you to make changes and add what is required. You don’t have to worry about asking permission from a landlord or explaining why something needs changing.

Have the freedom to make modifications

When you’re not renting, you’ll have the opportunity to modify your house, which isn’t permanent. You could paint the walls, replace the flooring or even build an extension if you wanted to. While a landlord might be reluctant to allow these changes in their property when it’s your own home, there are no such complications.

Conclusion

The benefits of getting your first mortgage loan are many. You get to settle down and begin a family, build credit, have freedom over how you want your home to look and feel, and invest in an asset that you will appreciate if you’re unsure if now is the right time to buy a house—or if you’re still weighing all of your options.

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