Monthly Archives: August 2011

Ten Commandments for St Louis Home Buyers

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10 Commandments for St Louis home buyersIn our world, characterized by instant gratification, many home buyers have difficulty understanding that there are several processes involved in home buying.

Looking is an exception. It doesn’t take a rocket scientist to figure out that the selection process sometimes takes time. I will admit though, I’ve had buyer’s apologize to me for what they perceive as taking “too long” to find the right home. It takes what it takes.

The process of making sure the title is clear can cause confusion, but the biggest surprise to many home buyers is the fact that there’s a process to getting a home loan. Often times buyer’s think that giving a lender a few bits of information and a quick credit check (pre-approval) is all that’s required.

The process isn’t excruciating for most people, but it does take some time for the bank to review the buyer and the property and to do everything feasible to minimize the chance of loaning to a buyer that will default. Big changes in your “profile” during the review process can mean the difference between being able to buy or not.

The list below is a great list of the “do’s” and “do not’s” for buyer’s as they go through the process. This is really the domain of a good lender, but most REALTORS have experiences where something went awry as the deal was supposed to close due to actions taken by the buyer between pre-approval and closing. Its good information for any buyer getting ready to take the plunge.

1. Thou shall postpone any career moves until after your closing.
If at all possible, try not to make a career move during the time between your mortgage application and the closing on the home you
are purchasing. One of the factors mortgage companies consider is the length of the present employment; they are partial to stability.
2. Thou shalt not apply for new credit.
Why not? Because applying for new credit changes what is called “debt-to-income ratios” (the relationship of your income to your
debt). This could impact your ability to qualify for your mortgage loan and may initiate a new round of paperwork.
3. Thou shalt not incur new debt such as purchasing or leasing a new vehicle.
This should go under the general heading of “no new debt.” As with any debt, this will change your “debt-to-income ratios” and may
cause you not to qualify for your mortgage.
4. Tholl shalt not charge up your credit card balances.
5. Thou shalt not make a venJ large deposit or withdrawal from your bank account.
6. Thou shalt not change your mind after locking a rate.
7. Thou shalt not co-sign for someone else’s loan.
8. Thou shalt not spend your down payment money.
9. Keep holy thy closing date and paperwork.
Please try to schedule vacations for AFTER your closing date. If you’ve started packing for a move, remember to keep out any bank
statements, tax returns, or other important paperwork.
10. Thou shalt not file for divorce prior to closing.
Filing for divorce affects your marital status in a court of law; this change of status may sometimes complicate the process when
paperwork is being finalized.

St Louis real estate is our specialty! If you’re looking for real estate anywhere in the St Louis, MO area, including St Louis City, St Louis County, St Charles, Ballwin, Chesterfield, Kirkwood, Webster Groves, or one of the other areas we serve, simply click the “Search St Louis Real Estate” link at the top or bottom of this page to begin your home search now.

Word to the Wise: PRIORITIZE!

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St Louis home buyingIn working with St Louis home buyers, there are lots of variations. Some buyers know exactly what they want, what they can pay, and where to look; they just need a REALTOR to make the connection. Other buyers in St Louis are really clueless. They have no idea what they want or where to look. They want a REALTOR to tell them where to go and what to do throughout the entire home buying process.

Question: which is better off?

Answer: Neither

Some would say that home buyer #1 is in better shape. They’ve done their homework, they are confident, they have a plan.

The problem with this type of buyer in many cases is that they make their plan BEFORE they have the benefit of working with a professional. Sometimes this type of buyer has begun the process of narrowing down their search and has ruled out homes or areas based on the direction of misinformation or the opinions or wishes of others.

Home buyer #2, some would argue, shouldn’t even buy a home. They need to know what they want before they start working with a REALTOR. This may be true in some cases. Often times this type of buyer allows a professional to get involved to assist them through the ENTIRE process, not just the final act. Often times a REALTOR can help a home buyer do a better job of considering all possibilities then methodically narrowing down the search based on realistic factors.

In ALL cases, there’s no “1 right way” to buy a home. Factors vary for everyone. The point is, that either too much preparation, or too little preparation can put a home buyer in a position where they aren’t allowing their real estate professional to help them or putting too much in their hands.

Buyer’s best bet is to take the time to make out a list of priorities about what they want in a residence. Proximity to work, proximity to family or friends, price range, type of community, type of home, and realistic idea of the duration of the residency should all be considered. Nothing is more disappointing to buyer’s agents as a call from a home buyer shortly after a purchase when they are disappointed in where or what they’ve purchased. Also a drag is when a buyer finds themselves wanting or needing to move because certain factors weren’t considered prior to the purchase.

Home buying is a PERSONAL decision, so allowing anyone to have too much influence in the factors that are personal can lead to frustration. That’s why taking a few minutes to list priorities BEFORE friends, family and strangers start the process of unsolicited counseling.

Once home buyers have that list, a REALTOR should be consulted. Often times a good buyer’s agent might think of possibilities that a home buyer may not consider just based on information on the list.

St Louis home buying is exciting! Finding a place can be exhilarating and a fantastic investment. Something to really be proud of! The right amount of preparation in advance can make a wonderful impact on the whole process.

St Louis real estate is our specialty! If you’re looking for real estate anywhere in the St Louis, MO area, including St Louis City, St Louis County, St Charles, Ballwin, Chesterfield, Kirkwood, Webster Groves, or one of the other areas we serve, simply click the “Search St Louis Real Estate” link at the top or bottom of this page to begin your home search now.