Top 10 Tips To Buying Your First Home

Top 10 Tips to Buying Your First Home

Buying a home for the first time can be stressful... but with the right pre-frame and the right support it can be one of the most joyful experiences of your life!

Setting your goals, making a list of things you WANT and NEED in your home and working with a knowledgeable Agent to help guide you can definitely streamline the process.

When you are planning to buy Real Estate in a city like St. Louis, one of the largest urban areas in Missouri, you have to keep both your eyes and ears open. There has been a steady increase in supply and demand over the last several years, the competition between home buyers is triggering bidding wars.

Choosing a competent and experienced realtor will ensure your first-time home buying experience is one to remember.

Before you dive in...

Check out these 10 Tips that can make your experience a memorable one!

1.      Choose a Realtor who always has your best interests in mind.

2.      What kind of home do you want to buy? Real estate in St. Louis offers a large variety of  dwelling options.

3.      Make a list of the features that you are looking for and order them by importance

4.      Consider any personal and financial aspects prior to looking at homes

5.      Be very clear on your financial capabilities. Your mortgage lender can guide you through the pre-approval process and show you any available first time home buyer programs you might be eligible for.

6.      Another financial aspect to consider is maintenance costs. Look forward and avoid homes that will be a money pit. For Example; don’t purchase a home if the roof will need to be replaced in a few short years unless you plan on purchasing a home warranty.

7.      When it comes time for the home inspection… be Ready for anything. This will give you a clear picture of your chosen property and what repairs are needed if any.

8.      Consult with your realtor on the repairs needed to determine if this is the right home for you. Often times, the seller may be willing to negotiate price and terms after the inspection results come back.

9.      Your realtor has extensive experience in getting all the required information about your chosen property including permits and Tax liens if any.

10.  Time is of the essence... Remember, when you find The ONE... make an offer. don’t hesitate in this fast paced market!

I hope the information will help you in buying your first home! If you have any additional questions or need help navigating through the steps, we are here to help! You can reach us at 314-845-3400, Happy New Year!

Home Buyer Checklist

Buyer's Checklist
The H Team

Buyers must do their part to help make the Buying transaction "smooth" alll the way to the closing table. Always expect minor problems and delays along the way. On the seller's side, title problems are a common cause of postponed settlements. On your side, bureaucratic snags such as extensive credit checks and slow appraisals can bog things down. In many cases, there isn't much you or the seller can do but wait.

While you're waiting for completion of all the processes now in motion, you should:

Apply for homeowners insurance on your new home.
Get an exact accounting settlement cost, and make sure the money and necessary documents will be there at closing.
Select a date for the final walk-through of the house.
Contact utility companies about starting service in your name.
Insurance on your new home

Your lender will require you to take out a homeowners insurance policy, and usually pre-pay for the first years premium, something you would want to do anyway. The lender wants to cover the amount of its mortgage loan so it can recover the money in the event of a loss. However, it's up to you to see that your insurance coverage remains adequate by getting property protection, liability insurance and/or any additional coverage you think is necessary.

The final inspection
The house you're buying must be handed over to you in the condition specified in the contract. To verify this, schedule a walk-through of the house shortly before settlement, several days in advance is best, to allow time for the seller to correct any last-minute problems. Look for left behind items, trash, damages from the movers. Also check attics and garage rafters.

Take along a simple device, such as a plug-in nightlight, to test all electrical outlets. Turn on the furnace and air conditioning, flush toilets and turn on faucets, put the washing machine and dryer through a cycle. Fill all drains and check for leakage, run the dishwasher through a few complete cycles. In short, put the house through its paces.

If anything needs fixing or further cleaning, ask your agent to inform the selling agent or home seller immediately. Neither you nor the seller wants to postpone the settlement, but make it clear you won't go to closing until a second walk-through is satisfactory.

What happens at closing
The closing is where ownership of the home is officially transferred from the seller to you. Your closing officer works for the title company and coordinates the document signing and the collection and disbursement of funds. Your main role at the closing is to review and sign the documents related to the mortgage loan and to pay the closing costs.

Most parties involved with the purchase of your new home will attend your closing. The closing is a formal meeting typically attended by the buyer(s) and the seller(s) (and their attorneys if they have one), both real estate sales professionals, and, of course, the closing officer. The meeting is typically held at the title company's office.

What to bring to closing
For things to go smoothly, each party should bring certain documents and be prepared to pay the necessary fees. Many closing costs can be paid by personal check, but ask the closing attorney or closing officer. A certified or cashier's check may be required. Find out to whom checks should be made payable.Most closers will also require a state approved picture ID.

The seller and his attorney are responsible for preparing and bringing the deed and the most recent property-tax bill. They also will bring other documents required by the contract. This can include the property insurance policy, termite inspection, documents showing the removal of liens and a bill of sale for personal property.

Make sure you have adequate funds for the down payment and other settlement costs, arrange for your attorney to represent your interests at the meeting, bring the loan commitment, inform the lender of the meeting time and place. Finally, it's a good idea to bring a copy of the purchase contract to refresh your memory.

Regardless, if you're buying or selling The H Team will assist you from start to completion. Contact us today to answer any questions you may have.

First Time Homebuyer Tax Credits

Federal First Time Homebuyer Tax Credit
*Preprinted from an article by Sam Licklider


You may have already heard about this program from your Representative or Senator but, if you haven’t, MHDC (Missouri Housing Development Commission) has announced a new program to work in conjunction with the Federal First Time Homebuyer Tax Credit program. Included is the explanation from the MHDC web site immediately below this paragraph as well as the URL for the MHDC.

Quote from MHDC web site
With over 30 years experience funding mortgages for first-time homebuyers, MHDC knows that the biggest barrier faced by first-time homebuyers is acquiring money for down payment and closing costs. As a result, MHDC created a program that allows homebuyers to receive the value of the tax credit at the time of closing.
How the Federal First-Time Homebuyer Tax Credit Works:

First-time homebuyers receive a tax credit worth 10% of their home purchase, up to $7,500. The credit is claimed on the homebuyer’s federal tax returns. The credit is refundable, which means that the homebuyer receives a refund for the amount of the credit minus any federal tax liability. The credit is essentially an interest-free loan from the federal government and must be repaid through an increase in federal income taxes over a period of 15 years.

How the MHDC Tax Credit Advance Loan Program Works:

MHDC makes a second mortgage to the homebuyer at the time of closing worth up to 6% of the home purchase price or a maximum of $6,750, which is used to cover down payment and closing costs. The tax credit advance loan is paired with MHDC financing for the first mortgage in the form of a safe 30 year, fixed rate mortgage. The homebuyer then files for the federal tax credit and uses the credit refund to pay off the MHDC tax credit advance loan. If the tax credit advance loan is paid off by the designated deadline (no later than June, 2010), the homeowner pays no interest other than a modest servicing fee. If the tax credit advance loan is not paid in full by the deadline, principal and interest payments to repay the loan over 10 years begin automatically.

MHDC loan programs are available for households with incomes up to $85,500.

The federal tax credit and the MHDC tax credit advance loan program are both currently set to expire June 30, 2009.
Visit Missouri Housing Development Commission for more information.

To begin looking for that new home contact The H Team today.

First Time Home Buyer Mistakes

5 Common First-Time Home Buyer Mistakes
The H Team


They don’t ask enough questions of their lender and end up missing out on the best deal.

They don’t act quickly enough to make a decision and someone else buys the house.

They don’t find the right agent who’s willing to help them through the homebuying process.

They don’t do enough to make their offer look appealing to a seller.

They don’t think about resale before they buy. The average first-time buyer only stays in a home for four years.

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