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Your Guide to Buying a Home in Mississippi

The Buying Process: A Summary

  • In the state of Mississippi, real estate purchases are usually closed by an attorney. 
  • After reaching a purchase agreement, the buyer and seller will need to negotiate details such as repairs and upgrades.
  • Buyers and sellers can negotiate who pays the title-insurance premiums and closing costs for the Mississippi purchase.
  • You’ll need to work with the lender and send a variety of documents to finalize the mortgage.
  • Real estate purchases are often closed at the same table, with both the buyer and seller present at the same time.
  • All of Mississippi is under the base conforming limits, which is currently $647,200.*

Buying a Home, Phase 1: Negotiating for Your Mississippi Purchase

Once you come to an agreement on a price, the buying process is just getting started. In Phase 1, you’ll need to negotiate the details of the purchase.

  1. When you come to an agreement on price, you and the seller will sign a contract. 
  2. At the same time, you will deposit your “earnest money.” 
  3. The contract will be sent to an attorney or title company to begin preparing documents for transferring ownership. 
  4. You will review disclosures from the seller. These are simply statements of known issues or needed repairs for the property. 
  5. You can choose to perform inspections on the Mississippi home, including a general inspection. Many Mississippi buyers will also choose termite inspections and mold inspections. 
  6. If the home was built before 1978, a lead-paint disclosure may be required and an inspection for lead paint could be needed. 
  7. Based on the inspection results, you will deliver a report to the seller. The seller can then adjust the sale price or complete repairs to fix any issues found during the inspections. 
  8. You and the seller will negotiate back and forth until a final agreement is reached. 

Phase 2: The Mississippi Mortgage Process

You may have been pre-qualified for a loan, but you’ll still need to complete a variety of steps to finalize the mortgage. This phase takes the most time, so you’ll want to gather documents and start the process as soon as possible. 

  1. You will start the official mortgage process by completing a mortgage application. You can do this on your own, although many seek the help of a qualified mortgage professional. 
  2. Although they have not approved the loan, they will send a “good faith estimate,” which is an estimate of the expected costs to complete the mortgage. 
  3. To finalize the loan, the lender will need a variety of documents, including: 
  • Tax returns for the past two years. The lender may request further data under special circumstances. 
  • Pay stubs from your employer. Most loans only require a couple of pay stubs from the past two pay cycles. 
  • Current statements on all accounts you own. 
  • Information on any debts you currently have, including loan totals and monthly payments. This should include car loans, student loans, and any other financial obligations that impact your finances.
  • Information on anything that impacts your finances, such as child support, alimony, legal judgements, and divorce decrees. This should be included whether it enhances or reduces your income.
  • Explanation on any recent credit inquiries.
  • Information on any large deposits outside of your regular income.
  • If a large cash gift will be used for your downpayment or other expenses, you may need to supply the lender with a “gift letter” that explains the nature of the gift. 
  • Repeat or updated information on any of the above documents.

4. At some point, you will also need to order homeowners insurance and provide proof of this insurance to the lender.

5. The lending office will eventually render a decision. If you are approved, you’ll receive a loan commitment letter. You should send a copy of this letter to the home seller or seller’s agent. 

6. The lender (in most cases) will require an appraisal to confirm the market value of the property. If the appraisal is low, they may request changes to the loan or the purchase price. However, if the appraisal is strong, the purchase can likely move forward. 

Remember that this is one of the most extensive phases of the entire process. Outside of searching for a home and making offers, this is often the longest phase. Therefore, it’s best to start as early as possible and prepare all documents as soon as you can. 

Phase 3: The Final Closing in Mississippi

In Mississippi, the loan is usually closed with both parties together at the same table. The process is generally fast and simple, and will be overseen by an attorney or title-company representative. 

  1. Before the loan is finalized, the attorney or title company will perform a title search to make sure the property is free and clear of ownership issues.
  2. A final cash figure for closing the purchase will be calculated. This is the amount you will need to bring in the form of a cashier’s check. 
  3. A final walkthrough will be performed on the property. 
  4. At the closing table, you and the seller will meet together to complete the transaction and finalize the purchase.
  5. You will now pay the remaining funds for your downpayment. This should be paid to the attorney or the title-company representative. 
  6. The transaction will be recorded with the appropriate municipality, such as the city or county where the home is located. 
  7. You’ll now receive the keys to your Mississippi property and can move into your new home!

Mississippi Conforming Loan Limits*

Conforming loans limits are determined by the Federal Housing Finance Agency, which sets the limits on a county-by-county basis for the entire country. Most of the nation is under the base limits, but high-priced areas can have higher limits.

The entire state of Mississippi, however, is under the base limits. Although there are certainly high-cost cities in Mississippi, all counties are under the base limit, which is currently $647,200*.

From the Mississippi River on the western edge to the border with Alabama, from Mississippi’s Gulf shore to the northern border with Tennessee, these are the limits for the entire state. 

Conforming loans can also be used to purchase multiunit properties in Mississippi. The limit for a two-unit property is $.828,700. If you want a three-unit property, the limit is $1,001,650, while the limit for a four-unit is $1,244,850.

These limits are for conforming loans only. If you need a loan for a single-family home above $647,200, or if you want to purchase a multiunit property with a mortgage above the allowed conforming amount, there are options. Contact our team for information on jumbo loan in Mississippi. 

* Note: Loan limits are adjusted every year, and these numbers may not reflect current limits. For up-to-date loan information, contact our team today. 

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Chad Baker, CrossCountry Mortgage   
NMLS# 329451 | CCM NMLS# 3029