Home Buying 101 in St. Louis, MO
By: Denise Grab.png)
Once you have gone through the process of purchasing a home you either feel like an expert, or you feel like the last 30 days was a whirlwind of crazy and you are just happy to be in your beautiful new home. At First Integrity Mortgage Services in St. Louis, Missouri we do our best to educate our buyers throughout the process with what to do as well as what not to do throughout the process. It is essential because sometimes you might think you are doing something to improve your financial situation such as consolidating credit cards, closing out old trade lines on your credit report or trading in your car, and reducing your car payment. One might think that these steps are great ideas, but when you are in the process of buying a home could be detrimental to the process. Always, ask your loan officer before you make changes to your credit while you are in the loan process.
As a consumer, when I am looking at switching insurance companies or picking out sunscreen, I like to have options. I want to be able to choose if I want a lower deductible but a higher premium or to have Coppertone with oil and 15 SPF, or the Target brand because it’s the same quality but cheaper. The point is, at First Integrity Mortgage Services, we provide you options we think are best for your financial situation based on conversations, but we leave it up to you to decide what is best for your needs. Sometimes the 20% down payment conventional 30 year fixed cookie cutter loan that you have been saving for might not be the best product for your situation. I know that doesn’t sound right, but we take pride in educating buyers and being mortgage experts so that our customers are confident that after closing they made the best financial decision for one of the most significant purchases they will have to make. There are so many products that if you Google mortgage programs, there would be page after page of different options. I would not suggest doing that because you will overwhelm yourself very quickly. Some of the primary loan programs that you hear of on the streets are conventional, FHA, VA, USDA, Fixed Vs. ARM terms, jumbo, construction, HELOC, Portfolio, Homepath, Homepossible, PowerPlus, 203K Renovation, DesignPlus…the list could continue for days. This is just the point. Don’t overwhelm yourself and talk to your loan expert at First Integrity Mortgage Services to find the best program for you!
The purchase market is very competitive right now, so it is essential that buyers are prepared with a “valid” pre-approval and are confident with their loan program before hitting the streets looking for a new home. It is important to run through your budget and what you are comfortable with in regards to your monthly payment because more than likely the house you put an offer on will have multiple offers on it and you will have to have your best offer presented right off the bat. This is not something that we are used to, but the market has shifted in our area. This is why it is critical to work with a real estate expert that can educate you on comparables in the area and make sure that you are not overpaying. This brings up a very important part of your loan, the appraisal! A third-party appraiser will go out and assess the property and provide a report with what their opinion of the value is based on facts or comparables of like homes that have sold in the neighborhood. Right now, buyers in some cases, are bidding over the list price so it is important to note that there is a chance the value could come in less and you could possibly have to pay the difference in purchase price and appraised value if you really want the home. We base our loan off the lower of the two, purchase price or appraised value.
Not only are your First Integrity Mortgage Services loan officers always available for you to answer questions you also might have something in your home that can answer questions about the loan process and First Integrity that you didn’t know was available to you for that reason. For those of you that want to do a little more research online before you talk to a live First Integrity team member, tell Alexa, “Start First Integrity Mortgage.” Alexa will prompt you to hear about different programs, customer reviews, Do’s and Don’ts, the difference between a Pre-Approval and Pre-Qualification and many other items that can be very useful throughout the process.
We Think. We Care. We Deliver! AND, we will be with you every step of the way to guide and educate you through the home buying process. Call or email me today with any questions about your mortgage or if you are ready to get pre-approved for the next home!
Denise Grab, NMLS# 738524, 314.220.9620, or dgrab@firstintegrity.com.