I don't think it is a matter of whether the first sentence is correct or incorrect. Rather, it is a matter of which sentence is more idiomatic and your second example is far more idiomatic.
Positioning of adverbs in English is very tricky. Some are very flexible and some aren't without hard-and-fast rule.
Usually, adverbs are placed before a main verb and after an auxiliary or modal verb. However, this rule doesn't apply to every sentence. It will mainly depend on which word you want to emphasize or stress and whether their position will change the meaning of a sentence or not. For example, if you contrast
I will be waiting here. vs I will be here waiting.
Basically two sentences have the same meaning, however, the adverb here is positioned differently. The former places emphasis on "waiting" and the latter on "here". Usually, "waiting" in the former is stressed while "here" in the latter is.
As @JavaLatte explained, an adverb of place is usually, most of the time placed at the end or beginning of a sentence. However, it is not always the case as the second example sentence above shows.
Your second example will be far more broadly used than the first example. However, I don't see any reason why you can't use the first example if you want to emphasize "here".