10 Tips for First-Time St. Louis Homebuyers (Part 2)
Following up on the first half of our tips for first-time St. Louis homebuyers, here are the rest of the our tips to be aware of.
Save as Much as You Can
You should not only count on the down payment, but the closing costs, taxes, moving day costs and unexpected costs as well. Experts say you should save at least three to six months of expenses in an emergency fund for any unexpected costs that may come up.
Get Pre-Approval
Ask your lender to look over your financials and assets, and to write you a pre-approval letter. This will show the sellers that you are not only serious about buying their home but capable of getting the loan to pay for it.
Know About PMI
PMI is the private mortgage insurance that you may need to pay if you plan to put down less than 20% up front. If you are going to be paying for PMI then you need to make sure to let your lender know when you have paid down your mortgage to just 80% of the home’s value. This will allow them to cancel your PMI when you owe 78% so that you don’t have to pay a month more of PMI than you have to.
Research Homeowner’s Insurance
You should look at many different homeowners’ insurance rates and know their restrictions so as to be sure that you can afford the home that you want. If the home you want is near the water, a fault line or has a pool you should know how each factor impacts the rates and costs that you will be responsible for.
Learn your Credit Score
Know your credit score before you start the process, as your interest rate will depend on it. Check your credit score at least three months before you begin house hunting in order to allow time to catch and correct any errors.
Don’t Skip the Inspections
All homes need inspections, even if they are brand new from the ground up. You cannot skip the home inspection, otherwise you will miss any issues that you could have fixed by the seller or get a lower price because of. As first-time St. Louis homebuyers you should not be shy about asking for either; typically if you ask for more, you will get more – so speak up.
There will be a lot of decisions to make during the home buying process so it’s your job to know which ones are good and which ones may leave you with regret. As first-time St. Louis homebuyers, you will experience that this is a drawn out process with a lot of moving parts. Regardless, you should know what’s ahead and not be afraid to ask questions along the way. While this list is in no way a complete list of mistakes made by first-time St. Louis homebuyers, it will help you to avoid making the wrong decisions.