Tips for First-Time St. Louis Homebuyers
As the job market and the economy continue to strengthen, more first-time St. Louis homebuyers find themselves in a position to purchase a new home. For many, this will be the most expensive purchase that they will ever make; as a result, this can be overwhelming. Below are four tips to help make this buying process easier for first-time St. Louis homebuyers.
Saving Up For Your Down Payment
You will need to be prepared to put some money down, but depending on your situation you may not need to save 20%. Many lenders now are allowing you to get a loan without the 20%, with some willing to go as low as 3%. This comes with a downside, though. If you don’t do the 20% you will be required to get private mortgage insurance (PMI). When you need to get PMI your mortgage cost can go up by $100 to $200 a month.
The Cost of Having a Home
If you are not adequately prepared and end up purchasing a home out of your price range you may find that owning a home will be very overwhelming. It is important that when looking for a home you factor in more than just the mortgage into your budget. Your budget also needs to include things like water, electricity, maintenance, and any improvements that you want to do to the home.
Start the Process Off on the Right Foot
Your first step should be researching, interviewing and finding the right lender. This will be the person who can help guide you into the right mortgage for you. He or she will also be able to help you identify what you can afford in a home and what price range to start looking in.
Get the Right Information
You need to know that you are getting the right information from the start. Since this is the first time you will be buying a home and, thus, your first time going through this process, consider taking the first-time homebuyer classes which are offered by the government and some banks. These classes can help you identify if you are ready to buy a home, go over the process of getting a loan, the paperwork needed and what your loan entails. By being prepared from the beginning you can alleviate much of the stress associated with purchasing a home.
Purchasing a home can be very overwhelming if it is not done right. By connecting with the right people and making sure you are completely prepared you can make purchasing a home an enjoyable experience, worthy of the first-time St. Louis homebuyers excitement.