Ми тут жили is also right, as well as ми жили тут. It's the same.
Yes, if not accepted please report, thank you.
Ми мали жили тут (We had lived here.)?
No, that's a different meaning.
Ми мали жити тут = we had to live here
We had lived here = ми жили тут (Ukrainian doesn't have perfect tense, neither past nor present)