The Home Buying Process in St. Louis, MO
David Puzniak .png)
In the 1960’s, John Lennon and Paul McCartney wrote these lines for a song, “The long and winding road, that leads to your door, will never disappear.” Contrary to popular belief, the song, “The Long and Winding Road” is not about Lennon and McCartney’s first home buying experience, but it does mirror the path all homebuyers must follow in order to go from initial decision to own a home to actually buying and closing on the home.
Ideally, the home buying process starts by visiting with a credible lender who can provide information on the various mortgages available and help make sense of all the options. A good lender will want to discuss financial goals, family goals, and more in order to offer a program that is specifically designed for the borrower’s unique needs and wants.
Once a home to purchase decision has been made, it’s in the interest of the borrower that a complete preapproval is performed. This will include checking credit history and submission of income and asset information. The lender will then analyze all of the documentation, identify any pitfalls and work to be completed in order that the borrower is fully prepared when the right home is found. THIS IS A PREAPPROVAL; it is a thorough review of credit, income and asset documentation. It is important to obtain a preapproval and not a prequalification.
A prequalification is simply a credit report and a verbal acknowledgment of income and assets. Often, online lenders will ask borrowers to simply complete an online form and do NOT collect any documentation to support the income and asset levels shared on the forms. Without the documentation, the figures are simply opinions.
Once a price range is established, it’s time to seek out the advice of a real estate agent. Friends and neighbors can be the best resource for finding a real estate agent, as they have had direct experience with the Realtor’s® attitude and qualifications. Lenders can also be a great resource, as they have had direct experience with various Realtors® in their region.
Smart borrowers will interview a few agents to ensure they are in tune with their wants and needs. It’s also recommended to share search information with the agents and to share all the desired elements for the home to be purchased - the number of bedrooms, the number of bathrooms, the need for a garage, the need for a specific school district, handicap accessibility, etc. These factors and much more will be taken into consideration by the real estate agent while helping a borrower find a home. The Realtor® should also provide valuable insights about the neighborhood and suggest borrowers drive through the neighborhood at various times of the day/night/weekend in order to get a feel for the area.
When searching for a home, make sure to introduce the Realtor® chosen to the lender. A great working relationship between the borrower, real estate agent and lender keeps the lines of communication open and helps to move the home buying process in the right direction.
The Home Buying Process has many different players. If the long and winding road is well navigated, at the end of the journey, a HAPPY HOME is found!
For any questions or comments, David Puzniak can be reached at 314.486.2652 or dpuzniak@firstintegrity.com
Senior Mortgage Banker
First Integrity Mortgage Services
NMLS #559106