First-Time Homebuyer Guide: Buying Your First Home in Garden City

Why Garden City Is a Great Place to Buy Your First Home

Garden City, Michigan, is an excellent choice for first-time homebuyers looking to settle in a welcoming community. The Sonic Loans team has found that many first-time buyers are drawn to Garden City for its affordability and family-friendly atmosphere. With a median home price of $219,900, Garden City offers great value compared to other Metro Detroit suburbs.

First-time buyers our team works with often choose Garden City because of its convenient location with easy access to major highways, making commutes to Detroit and surrounding areas straightforward. Additionally, the city boasts well-regarded schools and a variety of recreational spaces, which are appealing to those looking to establish roots in a community-focused environment.

How Much House Can You Actually Afford in Garden City?

The question of affordability is crucial for first-time homebuyers. With the median home price in Garden City at $219,900, understanding how much house you can afford is essential. A common question we get at Sonic Loans every day is: "What can I really afford?" The answer depends on your specific financial situation, which is why obtaining a personalized pre-approval is so valuable.

According to Sonic Loans experts in Metro Detroit, the general guideline is the 28/36 rule, which suggests that your monthly housing expenses should not exceed 28% of your gross monthly income, and total debt payments should not exceed 36%. This framework helps buyers assess their budget without overextending financially.

What Are Your Down Payment Options?

Understanding your down payment options is a critical step in the homebuying journey. At Sonic Loans, we guide first-time buyers through several choices to find the best fit:

FHA Loans: Require as little as 3.5% down, perfect for first-time buyers with good but not perfect credit.
Conventional Loans: Range from 3-20% down, often offering the best rates for buyers with strong credit.
VA Loans: Allow for 0% down, honoring veterans' service.
MSHDA Programs: Provide Michigan-specific assistance that many Garden City buyers don't know exist.

Our lending team walks every first-time buyer through all options to ensure they choose the one that aligns with their financial goals.

Pre-Approval vs Pre-Qualification: Why It Matters

A question we frequently hear at Sonic Loans is: "What's the difference between pre-approval and pre-qualification?" The answer is that pre-approval is a more rigorous process that verifies your financial information, giving sellers confidence in your buying power. At Sonic Loans, we provide verified pre-approvals that sellers take seriously—not just pre-qualifications. This advantage can speed up the buying process, especially in competitive markets like Garden City.

Step-by-Step: The Garden City Homebuying Process

Buying a home in Garden City involves several key steps, each critical to a successful purchase:

Pre-Approval: Start with a fast pre-approval from Sonic Loans, offering an under 2-week average closing time.
House Hunting: Work with Sonic Realty to explore Garden City’s diverse neighborhoods.
Making an Offer: With your pre-approval in hand, submit a competitive offer.
Inspection and Negotiations: Conduct a thorough inspection and negotiate any necessary repairs.
Closing Day: Close on your new home, often in less than two weeks with Sonic Title’s streamlined process.

5 Mistakes Garden City First-Time Buyers Must Avoid

We've seen these mistakes derail deals—here's how to avoid them:

Skipping the pre-approval step, which can weaken your buying position.
Underestimating the total costs of homeownership, including maintenance and repairs.
Not researching neighborhoods thoroughly, leading to possible buyer's remorse.
Overlooking the importance of a detailed home inspection.
Making large financial changes before closing, which can impact your loan approval.

By avoiding these pitfalls, first-time buyers can ensure a smoother journey to homeownership.

KEY TAKEAWAYS FOR Garden City FIRST-TIME BUYERS:

Garden City offers affordable home options with a median price of $219,900, appealing to first-time buyers.
Understanding your budget with a personalized pre-approval from Sonic Loans is essential.
Explore various down payment options, including FHA, Conventional, VA, and MSHDA programs.
Pre-approval is more advantageous than pre-qualification in competitive markets.
Avoid common buyer mistakes with guidance from Sonic’s experienced team.

Whether you're considering your first home or ready to start the buying process, our team at Sonic Loans is here to guide you every step of the way. Call us at (313) 488-4888 for a free consultation and personalized mortgage advice tailored to your needs.

Rate Disclaimer

The rate of 6.16% referenced in this article is the national average 30-year fixed mortgage rate as reported by the Freddie Mac Primary Mortgage Market Survey (PMMS), published weekly and retrieved via Federal Reserve Economic Data (FRED). This is NOT an advertised rate or APR for any specific loan product offered by Sonic Loans.

Actual mortgage rates and Annual Percentage Rates (APR) offered by Sonic Loans will vary based on:

Credit score and credit history
Down payment amount
Loan amount and property value
Property type and location
Loan term and type

For current rate quotes and APR information specific to your situation, contact Sonic Loans at (313) 488-4888 or visit sonicloans.com. NMLS #1955855. Equal Housing Lender.

--- RATE DISCLAIMER: The rate of 6.16% referenced in this article is the national average 30-year fixed mortgage rate as reported by the Freddie Mac Primary Mortgage Market Survey (PMMS), published weekly and retrieved via Federal Reserve Economic Data (FRED). This is NOT an advertised rate or APR for any specific loan product offered by Sonic Loans. Actual mortgage rates and Annual Percentage Rates (APR) offered by Sonic Loans will vary based on: - Credit score and credit history - Down payment amount - Loan amount and property value - Property type and location - Loan term and type For current rate quotes and APR information specific to your situation, contact Sonic Loans at (313) 488-4888 or visit sonicloans.com. NMLS #1955855. Equal Housing Lender. ---

Fair Housing Notice: We are committed to the letter and spirit of the Fair Housing Act. We do not discriminate on the basis of race, color, religion, national origin, sex, familial status, or disability.

NMLS #1955855 | Equal Housing Lender

Rates shown are for informational purposes only and are subject to change. Your actual rate will depend on your credit score, loan amount, and other factors.

Sonic Loans is licensed in: Michigan, Florida, Texas, California, Colorado.