The Power of Two
Working2 for You
Since 1986
http://StLouisHome4U.com
Call Us - (636) 861-3790 or Toll Free (888) 434-SOLD
[ Toll Free (888) 434-7653 ]
Linda and Bob Reeder
Purchasing a
Home in St. Louis
Hassle Free
Buying a home can seem
like a frightening prospect. Whether it's your first home or your fifth, so
much is at stake; your savings, your credit rating, and your financial
freedom. It's difficult to find the courage to sign on the dotted line even
if you want that home very, very badly.
How do you determine whether the purchase of a home makes sense?
What's the easiest way to examine the whole picture from emotions to
economics?
We suggest that you read this entire report before you go house hunting.
You'll learn how to separate whims from true needs. You'll discover how to
prepare a game plan for your real estate venture, how to research
effectively, choose wisely, finance appropriately, and survive the whole
procedure with your smile in place.
SEVEN STEPS FOR SUCCESS
1. Get pre-qualified or pre-approved by a lender.
2. Establish your needs and your wants.
3. Determine how much you can afford.
4. Find a good real estate agent to help you.
5. Find a home that meets your needs.
6. Make an offer to buy a home.
7. Save as much as you can on your initial investment.
STEP ONE: GET PRE-QUALIFIED OR PRE-APPROVED BY A LENDERYou can save yourself time and heartache by meeting with a lender before you
start your search for a home. A lender can let you know what specific loan
programs would be best for you. He can also help you understand what it
takes to qualify for the loan that you want. By taking a look at your
financial situation and looking at your credit history, a lender can usually
give you a good idea if you can qualify for the loan amount that you want.
Many lenders call this ‘Pre-Qualifying A Buyer.’
To be absolutely certain that you can be approved for a loan, you may want
to ask to be “pre-approved.” In the approval process, all of your
documentation is completed and submitted to an underwriter. The pre-approval
that you will receive is an actual loan commitment from a lender - your
guarantee of loan approval.
It is important that you are 99.9% sure you will get the financing needed
and your lender will be able to perform according to the time limits in a
purchase contract. If not, you could end up in the middle of a purchase and
find out otherwise. If this happens, you could lose your deposit, which
could be as much as 1%-5% of the purchase price. Ask for current references and
check them. Ask references if there were any problems during the loan
approval period, was loan approval on time, and did
they close on time?
A good agent will not show
properties to anyone who has not been pre-approved
STEP TWO: ESTABLISH YOUR NEEDS AND WANTS
Begin your search for a perfect home by making a careful assessment of the
kind of home you need and want. We recommend that you write it down. Take
time, right now, to be as specific as you can about your particular
requirements. First, make a list of “necessities” in your home. Next, list
the features that you “desire.”
STEP THREE: DETERMINE HOW MUCH YOU CAN AFFORD
Set up a budget for yourself. Decide how much you can really afford to
invest and be comfortable with, for your monthly house payment. Be
realistic. Most lenders suggest that your payments be no more than 28
percent of your total monthly income. Don’t forget to include taxes and
insurance if you plan to escrow. Just because you are pr-approved for a loan
of a certain amount does not mean you have to spend that much. You can use
our
mortgage calculators to help you figure this out.
STEP FOUR: FIND A GOOD REAL ESTATE AGENT TO HELP YOU
You can learn a lot about an agent by just letting him/her talk to you about
how he/she helps his/her buyers. Within a few minutes, you will probably be
able to determine if this agent’s style is in line with yours.
In making your determination, we suggest you review our tips on
Selecting a Real Estate
Agent.
Ask as many questions as you can up front. Finding a good agent will save
you huge amounts of time, effort, and frustration. Remember, a “Buyer’s
Agent” is working for YOU! (We hope you decide that Linda and Bob Reeder are
an excellent choice to be YOUR Buyer's Agent.)
STEP FIVE: FIND A HOME THAT MEETS YOUR NEEDS
Five tips for successful house hunting:
1. Keep an organized record of all your research data. Write down comments
about the homes that you see. Keep track of your likes and dislikes.
2. Make sure that your agent is aware of your time schedule and your
expectations. Do you like to look at one or two homes in a session? Four?
Eight? Discuss all of this with your agent.
3. Tell your agent about any homes that perk your interest and those you'd
like to know more about. Include those homes you discover as you explore the
area yourself or those you see advertised in the newspaper.
4. If you want to spend time driving around looking at homes for yourself,
ask your agent for a list of drive-by homes which you can consider first
from the outside. Your agent can then make appointments to show you the
interior of those that appeal to you.
5. Express your likes and dislikes to your agent after you see a home.
Honest communication is essential. Some buyers are shy and hesitant to tell
an agent what they really think of a house. They think the agent may take it
personally. Remember, the homes don't belong to the agent! You must be
straight forward about your likes and dislikes to enable the agent to do the
best job for you.
6. Be smart in how you use your time. Let us set up an email service for you
directly from MARIS (the actual St. Louis area's MLS system). You will
receive email updates within minutes of properties being entered into the
system that meet your criteria, or a listed property being changed so that
it now meets your criteria (e.g. price reduction). You will have it within 2 hours. Since most
of the other searches offered on the internet (at least the good ones)
download their information from this site, you will be hours or days ahead
of your competition in learning about the new properties and price changes
and have a better opportunity of getting to buy that dream home.
Request Updates
STEP SIX: MAKE AN OFFER TO BUY A HOME
Your real estate agent can help you make an offer to buy the home that you
select. It is important that you decide prior to viewing homes whether your
agent will represent you or the seller. Some agents work only for the
seller. In this case the agent may not be able to advise you in making a
fair offer. By looking at homes selling in the area and the length of time
it takes to sell, you should be able to get a good idea of value. Only a
“Buyer’s Agent” can give you all the information necessary to make an
intelligent offer in your best interests.
STEP SEVEN: SAVE AS MUCH AS YOU CAN ON YOUR INITIAL INVESTMENT
There are only two major investments to consider when buying a home. These
are the initial investment (including down payment and closing costs) and
the monthly payment (including principle, interest, taxes, and insurance).
Here are some ways to save on your initial investment:
1. Choose a low down payment loan. You do not necessarily have to put 20
percent, or even 10%, down. You can put 5% or even 0%,
down on some loans. Ask whether or nor your loan includes “private mortgage
insurance” or PMI.
2. As part of your offer, ask the seller to pay some of your closing costs.
Sellers are usually allowed to contribute to a buyer's closing costs. In
many cases this is a negotiable item. (Remember, the seller wants as much as
possible for their home and this will reduce their proceeds.)
3. Shop around for your home insurance. A little shopping can save you a
significant amount of money.
4. You can deduct money paid for discount points from your gross income
before computing your tax, which would effectively reduce the cost to you.
Always check with your CPA to find out specifics regarding your specific
financial situation.
5. Don't forget that you will have initial costs for inspections, surveys,
and title insurance.
Keep your monthly payments low
1. Get a loan with no monthly mortgage insurance premiums. You may be able
to reduce or eliminate them by paying a little more at closing. By putting
20 percent or more down, you may be able to eliminate them entirely. Also,
some lenders may be able to do this with even smaller down payments.
2. Choose an Adjustable Rate Mortgage. ARMs can be up to 3 percent lower
than fixed rates. This can be a great savings if you do not plan on keeping
the property for a long period
Remember that interest payments on a primary residential mortgage are fully
deductible in most circumstances. Your property taxes may also be
deductible. Tax rates definitely favor homeowners.
Be sure to also look at the articles on
Being a Competent Buyer and Eight
Sins to Avoid When Buying a Home
Free MLS Email Updates Free Relocation Kit
More Information? Have Questions?
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Linda and Bob Reeder provide St. Louis Missouri real estate information and resources in order to assist home owners and home buyers with the process of buying and/or selling their St. Louis home or other residential real estate (house, condo or other property in St. Louis MO). Linda and Bob Reeder are top St. Louis real estate agents and will assist you in getting the best value for your purchase or sale of a St. Louis MO home. Their on-line services include free search of the St. Louis area (includes St. Louis MO homes - St. Louis houses and St. Louis condos) Multiple Listing Service (MLS) with NO REGISTRATION, Email updates on new listings as they become available, and more. They provide you the information to help you learn more about St. Louis condominiums, St. Louis houses, and other St. Louis MO real estate. Bob Reeder is a Graduate, REALTOR Institute (GRI). Linda Reeder is also a GRI and is designated a Certified Residential Specialist (CRS) and Coldwell Banker University Graduate (CBU). Additionally, Linda Reeder is also an Accredited Buyer's Representative (ABR). When you want a top St. Louis REALTOR, Linda and Bob are your best choice. Linda and Bob can help you obtain financial services, professional building inspections, assist you in maximizing your relocation benefits, advise you on how to prepare your home for sale to maximize your selling price, and make your St. Louis home buying or St. Louis home selling process go smoothly and successfully. When you need a Realtor in St. Louis MO, call us. Linda & Bob
Reeder |
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Copyright © 2005 Linda & Bob Reeder
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