If you are a person that has not purchased a home in the past 3 years, you would be considered as a first time home buyer. St. Louis realtors and mortgage professionals are here to help guide you through the purchase process, and make it as smooth as possible.
The first step is to see if you are ready to buy a home. The more you understand the real estate market place, the more likely you are to be able to meet your purchasing goals. A few things you will want to consider before purchasing a home are the purchasing time frame and what you can afford. Currently, there are various innovative mortgage programs that require only a 5% down payment or less. Some programs allow a first time home buyer (St. Louis) to buy with nothing down and underwrite closing costs. However, in order to qualify for these programs you will need solid credit for at least a year prior to purchasing your home.
The second step is to find a realtor. You can find top realtor professionals by referrals, open houses, and advertising. As a first time home buyer (St. Louis), you will want to establish a business relationship and make sure the realtor is alerting you to the most up-to-date marketplace conditions during the process.
The third step is to get preapproved. Very few individuals are able to purchase a home by using cash. Realtors strongly suggest starting the mortgage process before bidding on a home, as the purchase form only allows 7 to 10 days to apply for financing. This will allow you to take your time to find a lender, review your credit, and find one or two mortgage programs that fit your needs.
The fourth step is finding a home that is right for you. You will want to make a list of features and benefits you want in your home. You will also want to consider your priorities and needs for the future. You will want to target your search by location and affordability.
The fifth step is to get funding. As a first time home buyer (St. Louis) you will need to complete a loan application, along with providing supporting documentation such as recent pay stubs, rental checks, tax returns, and so forth. You will need to see how much your down payment would be, and make sure you have good credit.
The sixth step is one of the most important. You will need to find a lender that fits your financial goals.
The seventh step is to make an offer to the seller. The seller will accept, reject, or give you a counter offer. There will also be multiple inspections done on the home, such as a termite inspection, survey, appraisal, and structural inspection.
The eighth step is making sure you have homeowner’s insurance and home warranty coverage at closing. The final step is closing your loan. This is when the buyer and seller transfer the title. There will also be a final walk-through of the home.
If you are a first time home buyer, it is important to do your research. If you are feeling lost and overwhelmed, one of the best places to start is to visit our website. Cornerstone provides a free homeowner’s guide to help you understand the process. Call a mortgage professional today to help you meet your purchasing goal.
The above information is for educational purposes only. All information, loan programs and interest rates are subject to change without notice. All loans subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.