St Louis Metro Area Real Estate BlogRecently posted or modified blog posts in the category - Buying a Homehttps://www.thechadwilsongroup.com/blog/Copyright TheChadWilsonGroup.com2023-09-11T06:13:17-07:00tag:thechadwilsongroup.com,2012-09-20:263249 Expenses to Budget For in the First-Year of Homeownership<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/9_Expenses_to_Budget_for_in_the_First-Year_of_Homeownership.png" width="750" height="275" alt="9 Expenses to Budget for in the First Year of Homeownership" title="9 Expenses to Budget for in the First Year of Homeownership" />
If you are a <a href="https://www.thechadwilsongroup.com/buyers/first-time-buyers/" title="First-time homebuyer resources" target="_blank">first-time homebuyer</a>, you're likely looking forward to having a place to call your own. And in this competitive real estate market, you are focusing all your energy on navigating the ins and outs of getting your offer accepted while saving for the downpayment and <a href="https://www.thechadwilsongroup.com/buyers/what-are-closing-costs/" title="What are closing costs?" target="_blank">closing costs</a>.
However, it's essential not to overlook the items you'll need for the move, to maintain and to live in your new home. In this blog, we'll discuss nine unexpected expenses first-time homeowners face and why they should budget for them.
Moving and Living Costs
1. Moving Expenses
Moving can be an expensive endeavor, whether you're hiring professional movers or doing it yourself. Be sure to budget for boxes, packing materials, and any other supplies you'll need to make your move a success.
2. Appliances
If your new home doesn't come with all appliances, you'll need to budget for them. The most common appliances to consider are a washer, dryer, and refrigerator. Many first-time homeowners also enjoy purchasing grills or smokers. Let's face it--every first-time homebuyer dreams of weekend BBQs with friends!
3. Furniture
If you are moving to a bigger home, it's important to consider setting aside some money for purchasing new furniture to accommodate the extra space. First-time home buyer tip: There is no need to fill every room right away with furniture. Grow into your home, and take time to shop for great deals. Consider second-hand furniture as well!
Home Maintenance
Maintaining your home is crucial for safeguarding your investment. Since your home is probably the most substantial investment you'll ever make, it's essential to budget funds for its upkeep. The remaining expenses first-time homeowners face are associated with maintaining your new home:
4. Blinds and Shades
Especially if you've purchased a new construction home, you'll need to budget for blinds and shades. This is an expense that is often overlooked, but it's important to have window coverings for privacy and to block out sunlight, as it can be potentially harmful to your home's hardwood flooring and furniture. Sunlight can cause fading, cracking, and discoloration of these items, which can be costly to repair or replace. To prevent damage from the sun's harmful rays, consider investing in window coverings that block out UV light. In addition to protecting your flooring and furniture, window coverings can also help you save on energy costs by reducing heat gain during the summer months.
5. Fire Extinguisher
Safety should always be a top priority in your new home. Be sure to budget for a fire extinguisher for your kitchen or garage. While this is the LEAST expensive item on our list, it can also save you a lot of money in the case of an unexpected emergency.
6. Vacuum
Regular vacuuming is important for maintaining the cleanliness and longevity of carpets in your new home. Carpets can accumulate dust, dirt, and other debris over time, which can lead to staining, discoloration, and even the growth of harmful bacteria and allergens. Vacuuming on a regular basis helps to remove these particles from the carpet fibers, preventing them from causing damage. Additionally, vacuuming can help to extend the life of your carpets by removing dirt and debris that can wear down the fibers over time, leading to premature aging and degradation of the carpet. Therefore, investing in a quality vacuum and using it regularly can help keep your carpets looking clean and new for years to come. Be sure to budget for this essential cleaning tool.
7. Toolbox and Various DIY Tools
As a homeowner, you'll encounter a variety of small repairs and projects around the house. A toolbox with basic tools such as a hammer, screwdriver, and pliers will come in handy. Consider also a quality cordless drill. Most experts estimate that you will spend 1-4 % of the home’s value on home maintenance each year. Having a proper set of tools will help you perform some of this necessary maintenance yourself.
8. Lawn Maintenance Equipment
If you have a lawn, you'll need to budget for lawn maintenance expenses. This includes purchasing a lawn mower and trimmers, as well as a rake or leaf blower for leaves and debris. If you don't want to do the work yourself, budget for hiring a lawn service for fertilization, weed control, and mowing.
9. Landscaping
If you've purchased a new construction home, you may need to budget for landscaping expenses like trees, shrubs and hardscapes. Not all builders offer landscaping, and some only offer basic landscaping plans. Therefore, you'll need to budget accordingly.
Beyond the First Year
Whether you have purchased <a href="https://www.thechadwilsongroup.com/buyers/building-new-construction/" title="Building new construction" target="_blank">new construction</a> or an existing resale home, most likely you will want to make changes to it to make it your own. If you want to finish the basement, add a fence, or completely renovate the kitchen or primary bathroom, understand what needs to be done now, and what can wait, and then plan your budget accordingly.
Closing Thoughts
In conclusion, becoming a homeowner is an exciting time, but it's important to remember that it comes with a new set of responsibilities and expenses in order to protect your real estate investment by staying on top of maintenance. By budgeting and saving for these nine homeowner expenses before buying your home, you can avoid financial stress and enjoy your new home to the fullest. Remember, proper planning is key to making your dream of homeownership a reality.2023-04-05T11:53:36-07:002023-04-05T17:00:04-07:00Jennifer Smithtag:thechadwilsongroup.com,2012-09-20:24174Rent-to-Own Home Programs: How Do They Work?<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/Rent_to_Own_Home_Programs.png" width="750" height="275" alt="Rent to Own Home Programs" title="Rent to Own Home Programs" />
Buying a home with bad credit can be challenging, but it's not impossible. More recently, several forward-thinking companies now offer innovative programs that can help you achieve the dream of homeownership even if you have bad credit. They allow you to start building equity in a home right away while renting it, giving you time to improve your credit score and save for a down payment.
<a href="https://www.homepartners.com/" title="Learn about Home Partners of America" target="_blank">Home Partners of America</a> and <a href="https://www.verbhouse.com/" title="Learn more about Verbhouse" target="_blank">Verbhouse</a> and <a href="https://www.divvyhomes.com/reviews" title="Learn about Divvy Homes" target="_blank">Divvy Homes</a> are some of the more popular rent-to-own companies throughout the United States, buying a home of the buyer’s choosing while renting it back to them, with the goal of building credit and saving for a down payment.
Divvy Homes is the company that our team has used most often here in the St. Louis area and is the most prevalent one in the St. Louis Metro area real estate market. Therefore, the focus of our blog will be on the rent-to-own program with Divvy Homes.
Here's how the program works with Divvy Homes:
You apply to Divvy Homes and get pre-approved for a certain amount based on your income and credit score.
With the help of your REALTOR®, Divvy Homes will then help you find a home within your budget and pre-approved amount.
You will then pay a small down payment and start renting the home from Divvy, with a portion of the rent going towards building your down payment for the home.
After a period of time, typically 2-3 years, you will have built a down payment and improved your credit score, making it easier to qualify for a traditional mortgage.
Divvy will then sell you the home at the pre-agreed upon price, and you become the homeowner.
It is important to note that Divvy Homes operates in a limited number of cities around the United States, and availability may vary. While Divvy Homes may not be available in all areas and may not be suitable for everyone, it is an option that can help you overcome the challenges of buying a home with poor credit.
It's worth noting that these types of programs may require a higher initial deposit and may have a higher rent rate than the market rate, as well as other contract terms which should be considered before signing up for the program. It's important to carefully review the terms and conditions of these programs before signing up, and to consider the fees and long-term financial implications. Renting-to-own is not the right financial solution for every buyer, but for would-be buyers who intend to remain in the home for the long-term and are on a path of financial recovery, it is something to investigate to see if it is the right-solution for them.
Minimum Credit Score Requirements
Having a good credit score is a key factor in being approved for a rent-to-own program like with Divvy Homes.
According to Divvy Homes' website, they typically require a minimum credit score of 600 to be considered for their program. However, it's important to note that this is not a hard and fast rule and each applicant's creditworthiness is evaluated on a case-by-case basis.
If your credit score is lower than 600, don't be discouraged. Divvy Homes works with each applicant to understand their individual circumstances and may still approve you for the program. Additionally, you can take steps to improve your credit score such as paying off debt, correcting any errors on your credit report, and making sure to pay your bills on time.
It's also worth noting that Divvy Homes also looks at other factors such as income and employment history when evaluating an applicant's creditworthiness.
Interested? Here are your next steps.
Below are the steps a future home buyer should take to start the process with Divvy Homes:
Step 1: Research
Before diving into the home-buying process, it's important to do your research. Learn about Divvy Homes and how their program works. Understand the terms and conditions of their program and see if it aligns with your needs and goals. Additionally, research the housing market in the area where you're looking to buy a home. This will give you an idea of what to expect in terms of home prices and availability.
Hit the easy button and simply give our team a call; we will walk you through a <a href="https://www.thechadwilsongroup.com/buyers/" title="Learn more about buying a home with The Chad Wilson Group" target="_blank">buyers consultation</a> that covers all of this and more!
Step 2: Determine Your Budget
Once you have a good understanding of the program and housing market, it's time to determine your budget. Divvy Homes’ Rent-to-Own program, allowing you to rent a home with the option to buy it later, is a great way to build equity in a home while also saving for a down payment. It's important to understand the costs associated with this program and make sure it fits within your budget.
A local real estate agent can help you navigate the paperwork and ensure that everything is in order. They can also help you understand the terms and conditions of Divvy Homes' rent-to-own program and make sure that you understand all of the costs associated with the program.
Step 3: Find a Home
Now that you have a good understanding of the program and your budget, it's time to find a home. Divvy Homes has a wide variety of homes available for rent-to-own in different areas. Browse through their listings to find a home that meets your needs and fits within your budget.
Your REALTOR® has access to a wide range of listings and can help you find a home that fits your needs and budget. They can also give you an idea of what to expect in terms of home prices and availability in the area where you're looking to buy.
Step 4: Apply
Once you have found a home that you're interested in, it's time to apply. Divvy Homes has a simple online application process that can be completed in a matter of minutes. Make sure to have all of your information ready, such as your income and employment information.
Your REALTOR® can help you understand the process and represent your best interests throughout the negotiations, through the contract-to-close process, all the way through closing.
Step 5: Close the Deal
After your application is reviewed and approved, it's time to close the deal. Divvy Homes will work with you to finalize the terms of the rent-to-own agreement. Once the agreement is signed, you'll move into your new home and start building equity while renting.
Closing Thoughts<a href="https://www.divvyhomes.com/how-it-works" title="Learn how Divvy Homes works" target="_blank"> </a>
Rent-to-own programs like Divvy Homes, can be a great option for people with bad credit who want to buy a home. These programs allow you to rent a home with the option to purchase it after a certain period of time, giving you the opportunity to build your credit and save for a down payment. By considering unconventional options, like Divvy Homes, you can potentially achieve your dream of homeownership sooner.
If you are interested in using a rent-to-own program in the St. Louis area, fill out the contact form below to first contact our team. We'll help you navigate the process!2023-01-23T15:52:07-07:002023-01-24T10:51:25-07:00Jennifer Smithtag:thechadwilsongroup.com,2012-09-20:23971How to buy a home in 7 simple steps<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/How_to_Buy_a_Home_in_7_Simple_Steps.png" width="750" height="275" alt="How to Buy a Home in 7 Simple Steps" title="How to Buy a Home in 7 Simple Steps" />
Buying a home for the first time, or at any phase of your life, can be a daunting experience, but it's also an exciting one. There are many things to consider and plan for, but with the right knowledge and preparation, you can make the process go smoothly. We’ve pulled together 7 steps in the home-buying process to make the process as smooth as it can be.
1. Start by planning
To start yourself down the path of buying a home, you’ll need to begin preparing your finances, and begin determining your needs and wants in a home.
Make sure you have a solid financial foundation. This includes having a good credit score, a steady income, and a down payment saved up. It's a good idea to <a href="https://www.thechadwilsongroup.com/blog/what-is-a-credit-score/" title="What is a credit score?" target="_blank">check your credit score</a> and address any issues well before you start the home-buying process.
Also, determine your needs and wants. Before you start looking for a home, consider the areas and neighborhoods that you are most interested in. Consider their proximity to your work and areas that you frequent the most. Consider the school districts that you are most interested in, even if you don’t have children yet. Determine the size of the home that you need now, bedrooms, bathrooms, and square footage, and consider the size of the home that you will need in the future. This will help you to best focus your search and to determine which properties are the best fit for you. Read more about this topic in our blog <a href="https://www.thechadwilsongroup.com/blog/choosing-where-to-live-st-louis/" title="6 Questions to Help Identify Your Ideal Place to Live" target="_blank">6 Questions to Help Identify Your Ideal Place to Live</a>.
2. Hire a REALTOR®
<a href="https://www.thechadwilsongroup.com/blog/why-use-a-buyers-agent/" title="10 Reasons You Need a Buyer's Agent" target="_blank">Having a real estate professional</a> can be a great asset when buying your home. They will be able to guide you through the process and can help you to find homes that fit your needs and budget, as well as expertly advocate for you through complex situations. Your local real estate professional will know the local real estate market and will have many connections to local trusted lenders and vendors. In a market when inventory is tight, they will be able to provide you home-search resources above and beyond MLS access, helping you find your dream home.
3. Get pre-approved for a mortgage
<a href="https://www.thechadwilsongroup.com/blog/how-to-get-your-finances-in-order-before-you-start-house-hunting/" title="How to get your finances in order before you begin house hunting" target="_blank">Once your finances are in order</a>, you'll want to get pre-approved for a mortgage. This will give you a good idea of how much you can afford to spend on a home, and will make the process of finding a home more efficient since it will help you focus your search to homes that are within a price band that you can qualify for. Consider consulting with your REALTOR® to find the best local lenders in the St. Louis Metro Area.
4. View homes in your price range
Once you know how much you can afford to spend, you can start looking for homes that fit within your budget and viewing those homes with your REALTOR®. Be sure to consider any additional costs such as HOA fees and property taxes, when determining the cost of the home. Check out our blog on <a href="https://www.thechadwilsongroup.com/blog/viewing-homes-for-sale-saint-louis/" title="!0 Things to Consider When Viewing a Home" target="_blank">10 Things to Consider When Viewing a Home for more information</a>.
5. Make and Negotiate an Offer
Once you have found the home within your budget that meets your needs and you are ready to make an offer on, your REALTOR® will guide you through the process of preparing an offer and negotiating. Price, terms and conditions will be negotiated. Read through all seller-provided disclosures.
With the help of your REALTOR®, consider the contingencies that are most appropriate for your particular situation. We usually recommend getting a home inspection. A home/property inspection will give you a good idea of the condition of the home and whether there are any major repairs that need to be made. Learn more about what to expect when making an offer in our "<a href="https://www.thechadwilsongroup.com/blog/what-to-expect-when-making-an-offer/" title="What to Expect When Making an Offer on a Home" target="_blank">What to Expect When Making an Offer on a Home</a>"!
6. Contract Accepted
If the seller agrees to the terms of your offer, they will sign and return the contract, thereby accepting the contract. Once all parties sign the contract, it is a “fully-executed contract”, and you are officially under contract for the purchase of a home, and you are one step closer to owning a home.
7. Navigate Contract-to-Close
Once you are under contract, you'll need to <a href="https://www.thechadwilsongroup.com/blog/12-steps-to-take-after-securing-a-contract-on-a-home/" title="Navigate the contract-to-close period" target="_blank">navigate the contract-to-close period</a>, with the help of your real estate agent. Your contract may have several contingencies, like depositing earnest money, inspecting the property, ability to obtain insurance, appraisal contingency, survey, clear title, loan commitment, and various other contingencies or riders to the contract. Time is of the essence with regard to meeting the terms and conditions of these contracts.
The reward of successfully meeting the timelines and hurdles of the contract-to-close period, is receiving the keys to your new home on closing day!
Closing Thoughts
Buying a home for the first time can be a big step, but with proper preparation and guidance, the process can be a smooth and exciting one. Remember that the most important step is to understand the full spectrum of the buying process, and doing your own research, in order to be an educated buyer. Having a financial plan and making sure that your finances are in order will also put you in a better position to confidently purchase your first home. With this knowledge, it's time to take the first step and dive into the home-buying process.
As your real estate professional, at The Chad Wilson Group, we see our role as tying these steps together as smoothly as possible and keeping you informed along the way. In doing so, our goal is for your home-buying experience, whether it is your first home or your fifth home, to be a fantastic experience. If you have any questions about the home-buying process in the St. Louis Metro Area, or if you are interested in starting the home-buying process with our team, get started today by filling out the Contact Form below!2023-01-18T15:20:00-07:002023-01-23T15:25:42-07:00Jennifer Smithtag:thechadwilsongroup.com,2012-09-20:239665 Co-Signer Considerations<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/5_Co-Signer_Considerations.png" width="750" height="275" alt="5 Co-Signer Considerations for a Mortgage Loan" title="5 Co-Signer Considerations for a Mortgage Loan" />
What you need to know before asking someone to co-sign on a mortgage loan
<a href="https://www.thechadwilsongroup.com/buyers/" title="Home-buying resources" target="_blank">Buying a home</a> is a significant milestone in anyone's life, but it can be especially challenging if you have bad credit. A low credit score can make it difficult to <a href="https://www.thechadwilsongroup.com/buyers/mortgage-pre-approval/" title="Mortgage Pre-Approval Resources" target="_blank">qualify for a mortgage</a> and can lead to higher interest rates, making it more difficult to afford the home of your dreams.
However, lenders often allow a co-signer to step in and sign for a loan with you. If you are fortunate enough to have someone in your life who would be willing to co-sign for a mortgage with you, a co-signer with good credit can increase your ability to obtain mortgage approval.
Buying a home is emotional, and certainly buying a home with another person co-signing adds another layer of emotion to the process. Open and honest conversations should be had upfront to mitigate these emotions. Also, planning and research about the pros and cons of co-signing a loan and what a co-signer is responsible for could potentially protect your relationship with the co-signer longer term.
To help navigate these pitfalls, we have put together these 5 co-signer considerations:
Identify potential co-signers: Look for someone who trusts you and has a good credit score, such as a family member, close friend, or even a professional acquaintance. It is important to remember that a co-signer is just as responsible for the loan as the primary borrower, so it's crucial to choose someone you trust and who also trusts you, who is financially stable, and who is invested in your future. And then over the life of the loan, take no action to break that trust that the co-signer has placed in you.
Have a conversation with the potential co-signer: It's important to have an open and honest conversation with your potential co-signer about the responsibilities and risks involved with co-signing. They need to understand that they will be held accountable for the loan if you are unable to make payments. Commit now to your co-signer that you will always have these open and honest conversations with them about the state of your finances over the life of the loan.
Provide financial documents: Your co-signer will need to provide their financial information to the lender, so make sure they are prepared with all the necessary documents, such as income statement, credit report and bank statement. Ensure in advance that they are comfortable providing this information and that it is readily attainable.
Consider the long-term commitment of the co-signer: It's important to consider the long-term commitment of being a co-signer. The co-signer can only be removed if you're able to make payments on time and <a href="https://www.thechadwilsongroup.com/blog/how-to-improve-your-credit-score/" title="How to Improve Your Credit Score" target="_blank">improve your credit score</a>. Once you are in a position to refinance the loan (re-applying and securing a new mortgage with your own credit history), only then will your co-signer be able to remove themselves from the loan.
Be aware of overextending yourself: While having a co-signer can increase your chances of getting approved for a mortgage, it's important to remember that it also puts your co-signer's credit at risk. Late or missing payments will negatively impact their credit score. It's important to make sure that you're confident in your own ability to make payments and maintain your creditworthiness. Commit to a budget in purchasing the home, with a monthly payment that is very comfortable. Furthermore, once the home is purchased, commit to a spending budget, ensuring that your mortgage is prioritized.
Closing Thoughts
A co-signer can be a valuable asset when trying to buy a home with bad credit, but it's important to choose the right person for your situation, communicate openly, and be aware of the risks involved. By carefully reviewing these 5 considerations, you can increase your chances of getting approved for a mortgage, you can maintain your relationship with your co-signer, and achieve your dream of homeownership.
No matter what stage you are at in your home-buying process, we are here to help you. We serve the Greater St. Louis Metro area, including <a href="https://www.thechadwilsongroup.com/st-louis-county/" title="Search for Homes in St. Louis County" target="_blank">St. Louis</a>, <a href="https://www.thechadwilsongroup.com/st-charles-county/" title="Search for homes in St. Charles County" target="_blank">St. Charles</a>, <a href="https://www.thechadwilsongroup.com/warren-county/" title="Search for Homes in Warren County" target="_blank">Warren</a>, and <a href="https://www.thechadwilsongroup.com/lincoln-county/" title="Search for homes in Lincoln County" target="_blank">Lincoln</a> Counties. We have helped hundreds of families purchase homes, many of them working their way through repairing bad credit and buying homes for the first time with very little credit. And we are eager to help you as well! Just fill out the contact form below!2023-01-12T10:21:31-07:002023-01-12T12:40:45-07:00Jennifer Smithtag:thechadwilsongroup.com,2012-09-20:2359910 Tips on How to Save for a Down Payment<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/10_Tips_on_How_to_Save_for_a_Down_Payment_5.png" width="750" height="275" alt="10 Tips on How to Save for a Down Payment" title="10 Tips on How to Save for a Down Payment" />
Saving for a down payment on a home can be daunting, but it's an essential step in becoming a homeowner. A down payment not only helps you <a href="https://www.thechadwilsongroup.com/buyers/mortgage-pre-approval/" title="Mortgage Resources" target="_blank">secure a mortgage</a>, but it can also help you get a lower interest rate and build equity in your home.
While it may take time and discipline to save for a down payment, there are several steps you can take to make the process easier. In this article, we'll provide 10 tips on how to save for a down payment, including reviewing your expenses, paying down debt, and exploring down payment assistance programs. With these strategies, you can work towards owning your own Greater St. Louis area home.
What is a Downpayment?
A down payment is a payment made when purchasing a property that represents a percentage of the total purchase price. The down payment is usually paid upfront at the time of closing, and it's applied toward the home’s purchase price. The remaining balance is typically financed through a mortgage loan.
The size of the down payment can vary depending on the type of loan you're using and your financial situation. Some loans, such as VA and FHA, may allow for a 0% down payment, meaning you don't have to put any money down upfront. Other loans may require a down payment of up to 20%. In general, the larger the down payment, the lower your monthly mortgage payment will be and the less likely you'll have to pay private mortgage insurance (PMI).
PMI is an insurance policy that protects the lender in the event that you default on your loan. It's usually required if you put less than 20% down on a home. You can avoid paying PMI and save money in the long run by making a larger down payment. So, it's important to consider the size of your down payment when buying a home and weigh the pros and cons of a larger versus smaller payment.
10 Tips on How to Save for a Downpayment
If you are hoping to buy a new Greater St. Louis Area home soon, here are our top tips for money toward your down payment.
1. Create a Plan for Saving
Saving for a down payment often presents a struggle for many would-be homebuyers. Hence, setting a clear goal and plan is the best place to begin. First, consider how much you need to save based on the type of home you want to purchase.
A larger down payment will often result in a lower mortgage payment. However, it's important to strike a balance between saving as much as possible while still being able to afford your other expenses. Once you have a target amount in mind, set a timeline for when you want to have that amount saved. This will give you a sense of how much you need to save each month and help you stay on track.
2. Review Your Recurring Expenses
One of the easiest ways to save money is to closely examine your recurring expenses. These are expenses that you regularly pay, such as your phone bill or streaming services. Consider canceling any subscriptions you don't use or could live without. You might also be able to save money by shopping around for better deals on things like phone contracts or insurance plans.
3. Review Your Other Expenses
In addition to recurring expenses, it's wise to review your other expenses as well. This might include things like groceries, transportation costs, and entertainment expenses. Consider creating a spreadsheet or using an online budget program to track your expenses and see where your money is going. Look for areas where you can cut back, such as eating out less or finding cheaper options for transportation.
4. Create a Budget and Stick to It
To save money, you must be mindful of your spending habits. Try to stick to a budget when shopping and avoid making impulse purchases. Instead, list the items you need and stick to them. Also, consider cooking at home instead of eating out, as this can save you a lot of money over time.
5. Pay Down Your Current Debt
Before you start saving for a down payment, it's crucial to focus on paying down any existing debt you may have. This can include credit cards, student loans, or other types of debt. The less obligations you have, the more money you'll have available to put toward a down payment. Paying off your debt can also help improve your credit score, which can make it easier to get approved for a mortgage.
6. Open a Dedicated Savings Account
To make saving for a down payment easier, consider opening a dedicated savings account specifically for this purpose. Then, set up automatic deposits from your paycheck into this account. This way, you can save consistently without having to remember to transfer money manually. By automating your savings, you'll be more likely to stick to your plan and reach your goal.
7. Review Your Current Income
If you're struggling to save enough money, exploring ways to increase your income might be helpful. This could include taking on additional work, starting a side hustle, or negotiating for a raise at your current job. Any extra income you can earn can help speed up the process of saving for a down payment.
8. Declutter Your Space
If you have a lot of clutter in your home, it might be time to declutter and sell off unwanted items. Not only will this help you save space and reduce stress, but it can also be a great way to earn some extra cash. You can sell your items through online marketplaces, garage sales, or consignment shops and then deposit the earnings into your dedicated down payment savings account.
9. Explore Down Payment Assistance Programs
If you're having trouble saving for a down payment, it might be worth looking into down payment assistance programs. These programs are designed to help first-time homebuyers or those with low to moderate incomes afford a home.
Various programs are available, each with its own eligibility requirements and terms. Some programs offer grants or loans to help with the down payment, while others offer tax credits or other incentives. Be sure to do your research and see if you qualify for any down payment assistance programs in your area.
10. Consider Living with Family to Minimize Rent Payments
If there's no way you can save for a down payment while paying rent, you might consider living with family members or friends to minimize your housing costs. This could be a temporary solution while you work on saving for a down payment, or it could be a long-term arrangement if it makes financial sense for you. Just be sure to communicate openly with your family members and set clear boundaries to ensure everyone is comfortable with the arrangement.
Final Thoughts
Saving for a down payment can be challenging, but with a clear plan and some discipline, achieving your goal is possible. You can work towards the dream of owning your own home by reviewing your expenses, sticking to a budget, paying down debt, and exploring down payment assistance programs.
Still have questions? Let us know how we can help you through this process by filling out the Contact Us form below. At The Chad Wilson Group, we strive to be your real estate resource, no matter what stage you are at in the home-buying process!2023-01-10T08:17:00-07:002023-01-10T08:22:32-07:00Jennifer Smithtag:thechadwilsongroup.com,2012-09-20:23598How Soon Can I Buy A House After Bankruptcy<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/How_Soon_Can_I_Buy_a_House_After_Bankruptcy.png" width="750" height="275" alt="How Soon Can I Buy a House After Bankruptcy" title="How Soon Can I Buy a House After Bankruptcy" />
Bankruptcy is a legal process allowing individuals to have their debts forgiven or reorganized to get a fresh financial start. While bankruptcy can provide much-needed relief for those struggling with overwhelming debt, it can also significantly impact a person's credit score and ability to borrow money or purchase property in the future. If you are considering bankruptcy or have recently filed for bankruptcy, you may wonder how soon you can buy a house after bankruptcy.
This article will explore the factors that can affect your ability to buy a house after bankruptcy and discuss the various loan options available to those who have gone through bankruptcy.
Factors that Affect How Soon You Can Buy a House After Bankruptcy
Several factors can affect how soon you can buy a house after bankruptcy, including the type of bankruptcy you filed, the length of time since the bankruptcy was filed, and your credit score and credit history.
Type of Bankruptcy
One of the first things to consider when determining how soon you can buy a house after bankruptcy is the type of bankruptcy you filed. Suppose you filed for Chapter 7 bankruptcy, which is a liquidation bankruptcy. In that case, it may take longer to buy a home than if you filed for Chapter 13 bankruptcy, which is a reorganization bankruptcy.
This is because Chapter 7 bankruptcy involves the sale of your non-exempt assets to pay off your debts, while Chapter 13 bankruptcy involves creating a repayment plan to pay off your debts over three to five years. As a result, Chapter 13 bankruptcy may have a shorter impact on your credit score and ability to borrow money than Chapter 7 bankruptcy.
Length of Time Since Bankruptcy was Filed
Another factor affecting how soon you can buy a house after bankruptcy is the length of time since you filed for bankruptcy. Generally, the longer it has been since you filed for bankruptcy, the more likely you will be approved for a mortgage. This is because your credit score will have had more time to recover, and your financial situation will have had more time to improve.
Credit Score and Credit History
Your credit score and credit history are important factors that lenders consider when determining whether to approve you for a mortgage. If you have a low credit score or a limited credit history, you may have a harder time getting approved for a mortgage after bankruptcy. On the other hand, if you have a good credit score and a strong credit history, you may have an easier time getting approved.
Loan Options for Buying a House After Bankruptcy
There are several loan options available to those who have gone through bankruptcy, including FHA loans, VA loans, USDA loans, and conventional loans with a higher down payment. Let's take a look at each type in more detail.
FHA Loans
Federal Housing Administration (FHA) loans are a popular option for borrowers who have gone through bankruptcy. To qualify for an FHA loan, you must wait at least two years after filing for Chapter 7 bankruptcy and at least one year after filing for Chapter 13 bankruptcy.
FHA loans are backed by the government and have more flexible credit requirements compared to conventional loans. However, they require a down payment of at least 3.5% and may have higher mortgage insurance premiums.
VA Loans
If you are a veteran or active duty military member, you may be able to qualify for a VA loan after bankruptcy. VA loans are backed by the Department of Veterans Affairs and have more lenient credit requirements compared to conventional loans.
In order to qualify for a VA loan after bankruptcy, you must typically wait at least two years after filing for Chapter 7 bankruptcy and at least one year after filing for Chapter 13 bankruptcy. VA loans do not require a downpayment and have lower mortgage insurance premiums compared to FHA loans.
USDA Loans
United States Department of Agriculture (USDA) loans are another option for borrowers who have gone through bankruptcy. USDA loans are available to low- and moderate-income borrowers who are looking to buy a home in a rural or suburban area.
To qualify for a USDA loan after bankruptcy, you must typically wait at least three years after filing for Chapter 7 bankruptcy and at least two years after filing for Chapter 13 bankruptcy. USDA loans do not require a downpayment and have lower mortgage insurance premiums compared to FHA loans.
Conventional Loans with Higher Down Payment
If you have a higher credit score and a larger down payment, you may be able to qualify for a conventional loan after bankruptcy. Conventional loans are not backed by the government and have stricter credit requirements compared to FHA and VA loans.
However, they may have lower mortgage insurance premiums and offer more flexible terms. In order to qualify for a conventional loan after bankruptcy, you may need to wait at least four years after filing for Chapter 7 bankruptcy and at least two years after filing for Chapter 13 bankruptcy.
Closing Thoughts
In conclusion, while bankruptcy can make it more difficult to buy a house, it is still possible to do so with some planning and effort. By rebuilding your credit, saving for a down payment, and <a href="https://www.thechadwilsongroup.com/buyers/mortgage-pre-approval/" title="Lender Resources" target="_blank">working with a lender or mortgage broker</a> who understands your situation, you can increase your chances of being approved for a mortgage and achieve your goal of homeownership.
If you are interested in <a href="https://www.thechadwilsongroup.com/buyers/" title="Home-buyer resources" target="_blank">buying a house</a> in the St. Louis area, we encourage you to contact us at the Chad Wilson Group for all of your home-buying needs using the Contact Us form below. Our team of experienced professionals can help you navigate the process of buying a house after bankruptcy and find the right loan option for you.2023-01-04T07:45:00-07:002022-12-27T15:57:44-07:00Jennifer Smithtag:thechadwilsongroup.com,2012-09-20:1542112 Steps to Take After Securing a Contract on a Home [INFOGRAPHIC]Your <a href="https://www.thechadwilsongroup.com/blog/tag/making-an-offer/" title="Making an offer" target="_blank">offer to purchase</a> the perfect home has been accepted by the seller and you are now officially under contract (yay!!). Many homebuyers now have the question: What do I do next? There are some crucial steps you need to take from the time you secure the contract to purchase to the time you sign the papers and walk through the door of your new home in the St. Louis area. If you are a client of our <a href="https://www.thechadwilsongroup.com/blog/sell-your-home-with-a-real-estate-team/" title="Why use a real estate team" target="_blank">full-service team</a>, you will enjoy the added convenience of working with a Transaction Coordinator, who will guide you through every step of this process. However, it is always important to know what to expect during this period so you can be prepared and help the process go as smoothly as possible. Let’s take a look!
<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Infographics/12_Steps_to_Take_After_Securing_a_Contract_on_a_Home_INFOGRAPHIC_1.png" width="672" height="2880" alt="12 Steps to Take After Securing a Contract on a Home" title="12 Steps to Take After Securing a Contract on a Home" />
It is important that you stay on top of each of these steps to ensure that the purchasing process flows smoothly. Working with an experienced real estate agent or team as well as a trusted lender is the best way to ensure that you are kept in the loop and the contract-to-close period moves along as it should.
Buying a home may take a lot of time, energy, and sometimes patience, but the end result is gratifying. There’s few better feelings than being handed the key to your new home and seeing all of the effort and emotions pay off in the end!
The Chad Wilson Group makes the home buying experience in the St. Louis area as easy as possible, with our expert team of real estate specialists. Not only will you have a hard-working, super star Buyer Specialist in your corner, you will enjoy the added benefits of a dedicated Transaction Coordinator to help facilitate your contract-to-close period and keep things on track. Our systems and strategies have earned us one of the top spots in St. Louis area real estate. If you would like to hear more about how our team can assist you in finding your next home, contact us or fill out the form below for a FREE, no obligation buyer consultation with a member of our team. We look forward to showing you what our “Simply Exceptional Service” looks like!2022-12-26T09:44:00-07:002022-12-27T07:40:14-07:00Beth Carrtag:thechadwilsongroup.com,2012-09-20:18474What is an HOA?<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/What_is_an_HOA_.png" width="750" height="275" alt="What is an HOA?" title="What is an HOA?" />
If you are looking to purchase a home in <a href="https://www.thechadwilsongroup.com/st-louis-county/" title="St. Louis County Homes for Sale" target="_blank">St. Louis</a>, <a href="https://www.thechadwilsongroup.com/st-charles-county/" title="St. Charles County Homes for Sale" target="_blank">St. Charles</a>, <a href="https://www.thechadwilsongroup.com/lincoln-county/" title="Lincoln County Homes for Sale" target="_blank">Lincoln</a>, or <a href="https://www.thechadwilsongroup.com/warren-county/" title="Warren County Homes for Sale" target="_blank">Warren</a> County, you are likely to encounter homes during your search which are a part of an HOA. It is important that you understand exactly what this means so that you do not encounter any unpleasant surprises and can make a decision that fits your preferences.
What is an HOA?
HOA stands for Homeowners Association, and it is basically an organization that makes and enforces rules for the properties and residents within a particular subdivision, planned community, or condominium building. When you purchase a property that is under an HOA, you automatically become a member of that HOA and are required to pay dues known as HOA fees. These are often paid monthly or yearly and the amount may vary based on factors such as the type of property you own, number of properties in the group, location, amenities, and operating expenses. HOA fees can change from year to year.
HOAs may be run by a property management company but also consist of a board of volunteer members who are elected from the community. Each one may be structured differently, so it is important that you learn about the structure of the HOA if you are considering purchasing a home within one.
What is the Purpose of an HOA?
Typically HOAs exist in order to help preserve and enhance the property values within a community. You will find that most of the rules established by an HOA deal with the appearance of the properties within it. Things like property cleanliness, condition, and repairs are often addressed. You can find these rules in the HOA’s Declaration of Covenants, Conditions, and Restrictions (CC&Rs). These set the conditions for property owners about the maintenance and appearance of their property.
CC&Rs usually include structural restrictions, such as what type of fencing is allowed, and sometimes even cover minor aesthetic choices, like the color of siding or paint you can use on the outside of your house. Within the CC&Rs you may even find an outline of the penalties for violating any of the restrictive covenants within the document. These penalties may include fines, forced compliance, and in some cases even litigation. This is why it is so important to know what you are getting into before you purchase a home with an HOA.
What will my HOA Fees Cover?
What your HOA fees cover varies greatly from one community to another. You will usually find that HOA fees cover any upkeep and maintenance for shared community features, such as mowing and landscaping of common grounds. Oftentimes the HOA will provide services to the community that are funded out of these fees. It is not uncommon to find special features like swimming pools, playgrounds, clubhouses, and athletic fields within a community that are reserved for exclusive use by those living within the jurisdiction of the HOA that funds them. It is also common for condominium HOAs to provide basic building maintenance, landscaping and lawn care services, and snow removal for parking lots and streets, all funded from the HOA fees they collect. If you are looking to purchase a home within an HOA, make sure you know not only how much you will be expected to pay, but also what services your fees cover.
<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/HOA%20Fence%20Material.png" width="750" height="275" alt="HOA rules may dictate what type of fence you can have" title="HOA rules may dictate what type of fence you can have" />
What are the Benefits of Buying a Home With an HOA?
Living under an HOA definitely has its benefits. Property values often remain high in areas with an HOA since property owners are required to adhere to strict guidelines about the appearance and upkeep of their property. Oftentimes, you will also enjoy additional amenities as an HOA member, though you should always clarify what is available to you before purchasing a home within an HOA.
What are the Drawbacks of Buying a Home With an HOA?
A major disadvantage of owning property with an HOA is the sometimes high costs of association fees. Additionally, some HOAs have strict rules about things like fence material, house color, and even how many cars can be parked in your driveway. Some HOA rules can seem arbitrary, and many homeowners prefer not to have to deal with these restrictions. You should also be wary of corrupt and poorly run HOAs, since buying a home within a community means you accept both its rules and leadership. If you are looking at a home with an HOA, it is a good idea to speak with some neighbors regarding how the HOA is run.
Should I Buy a Home Within an HOA?
This is a highly personal question with an answer that will vary from one buyer to another. Some people love the idea of community guidelines that keep things uniform and looking nice. Others are drawn to neighborhoods with an HOA for the extra amenities like a neighborhood swimming pool or playground. On the flip side, there are many people who dislike the restrictions placed on their property under an HOA and prefer to purchase a home where they will have more freedom to do as they please. The HOA fees are also sometimes a deterrent, especially if a buyer does not see the value in what they get out of it. You should think about what you want as a homeowner, and decide what makes the most sense for you.
Find Your Next Home With The Chad Wilson Group
The Chad Wilson Group can help you learn more about local HOAs in communities throughout <a href="https://www.thechadwilsongroup.com/st-louis-county/" title="St. Louis County Homes for Sale" target="_blank">St. Louis</a>, <a href="https://www.thechadwilsongroup.com/st-charles-county/" title="St. Charles County Homes for Sale" target="_blank">St. Charles</a>, <a href="https://www.thechadwilsongroup.com/warren-county/" title="Warren County Homes for Sale" target="_blank">Warren</a>, and <a href="https://www.thechadwilsongroup.com/lincoln-county/" title="Lincoln County Homes for Sale" target="_blank">Lincoln</a> Counties. Our real estate experts know what to look for and what questions to ask when it comes to buying a home with an HOA. We will be your guide, making sure you have a full understanding of the area in which you are interested in buying. <a href="https://www.thechadwilsongroup.com/contact/" title="Contact The Chad Wilson Group" target="_blank">Contact us</a> today with any questions you may have!2022-09-22T12:00:00-07:002022-12-08T07:41:49-07:00Beth Carrtag:thechadwilsongroup.com,2012-09-20:18443Things to pack for your first night in your new home [INFOGRAPHIC]There is so much to think about when it comes to purchasing, closing on, and moving into a new home. The process can certainly come with a lot of stress! When moving day comes and you finally have all of your belongings unloaded in your new place, the last thing you want to do is spend hours rooting around the boxes for things you need that first night. We recommend packing a "first night" box (or probably boxes) and keeping these accessible so you can spend more time kicked back in your new home on moving day. This way, you can take your time unpacking the boxes and still have what you need readily available. In the graphic below, we put together some of the most commonly used items to help you pack your "first night" box!
<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/Things_to_Pack_for_the_First_Night_in_Your_New_Home.png" width="1000" height="4800" alt="Things to Pack for the First Night in Your New Home [Infographic]" title="Things to Pack for the First Night in Your New Home [Infographic]" />
Let's Find Your Next Home!
We work hard so you don't have to! Our team of real estate professionals can help you find your next home in the Greater St. Louis area. Our goal is to help you find your dream home and to make your transaction as smooth as possible, all while providing what we call "Simply Exceptional Service". We can help recommend local, trusted lenders to get you <a href="https://www.thechadwilsongroup.com/buyers/mortgage-pre-approval/" title="Getting pre-approved for a mortgage" target="_blank">preapproved</a> and set you up on a <a href="https://www.thechadwilsongroup.com/buyers/personalized-home-search/" title="Free personalized home search" target="_blank">free personalized home search</a> so you can be confident that you will find "the one". <a href="https://www.thechadwilsongroup.com/contact/" title="Contact The Chad Wilson Group" target="_blank">Contact us</a> today or fill out the form below and a team member will be in touch!
2022-09-06T16:05:00-07:002022-09-12T11:54:14-07:00Beth Carrtag:thechadwilsongroup.com,2012-09-20:21055How to Make a Smart, Competitive Offer in a Sellers’ Market<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/How%20to%20Make%20a%20Smart,%20Competitive%20Offer%20in%20a%20Sellers'%20Market.png" width="750" height="275" alt="How to Make a Smart, Competitive Offer in a Sellers' Market" title="How to Make a Smart, Competitive Offer in a Sellers' Market" />
Although things seem to be changing in many parts of the country as interest rates rise, we are still undoubtedly experiencing a seller's market throughout the Greater St. Louis area. As a home buyer, it can be tough to know how to win a contract on the home you are eyeing when there seems to be so much competition. There are many effective <a href="https://www.thechadwilsongroup.com/blog/8-negotiating-techniques-for-home-buyers/" title="Negotiating Techniques" target="_blank">negotiating techniques</a> that home buyers can use in any market. The following strategies are some additional tips to help you make a smart, competitive offer in a seller's market.
1. Hire an Experienced REALTOR®
Trying to navigate a real estate purchase on your own, especially in a market favoring sellers, can be quite challenging. Hiring an experienced REALTOR® who has a pulse on the market and has worked through these processes many times will save you time, money, and multiple headaches. Real estate specialists will often be professionally connected with other individuals in the industry who will be involved in the transaction. They can connect you with a reputable lender, inspector, insurance agent, title company, and more! Having a team of service providers with a track record of success will take so much of the stress out of the buying process and help ensure things go smoothly.
2. Know Exactly What You Want
In a competitive market, you will need to be prepared to act fast. Often, there may not be time to think about what might be a want versus a need after you have viewed a home. To help make your decisions, you should think about and really narrow down your wants and needs for your next home before you begin searching. This way, you can easily decide if a home checks the boxes or not.
3. Take Your Pre-Approval a Step Further
Getting pre-approved is basically the first step in the home-buying process and is crucial in any market. However, in a highly competitive sellers’ market, you should talk to your lender about taking it a step further and going through the full mortgage underwriting process. A pre-approval is simply a preliminary check of your credit and finances and not necessarily a sure guarantee that you will ultimately be able to obtain the mortgage. Sellers want the most certain purchase arrangement, and if you can’t offer full cash, offering the highest guarantee of funding you can make your offer more appealing to the sellers and could help you stand out.
<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/Find_a_local_trusted_lender.png" width="2250" height="400" alt="Find a local trusted lender" title="Find a local trusted lender" />
4. Write a Clean Offer
A clean offer is one that is free of contingencies, or things that must happen in order for the sale to ultimately go through. This is quite appealing to the seller because it means the deal is more likely to close without problems or delays. While this isn’t always the best way to go as a buyer, you should consider keeping the offer free of any contingencies possible in a sellers’ market. You should discuss the different contingencies with your real estate agent and decide which you can reasonably give up without putting yourself at risk. A clean offer should also be free of seller concessions, such as asking them to help with closing costs. It is also wise to avoid asking for any personal property to be left, as this could cause them to quickly move on to another offer that does not ask for these things. If you really want the home, asking to keep that cool lawn furniture or the trampoline just isn’t worth it in a competitive market.
5. Increase Your Earnest Money Deposit
Earnest money is an amount of money that you put down with an offer that shows you are serious about purchasing the home. This money is typically applied to the purchase amount at closing, should the deal go through. One way you can stand out in a seller’s market is to increase the amount of earnest money that you put down with your offer. However, you should be careful with this. There are scenarios where a seller can keep the earnest money if certain conditions are not met, so make sure that you are really serious about your intent to purchase the home when doing this.
6. Make a Larger Down Payment on Your Loan
Sellers want to feel confident that the buyer they choose will have the capability to complete the sale. Any proof of financial ability that you can give them will help your offer stand out. If you can, making a larger down payment on your mortgage loan can show them that you are financially stable and should be able to go through with the purchase as agreed.
7. Offer With An Escalation Clause
In a sellers’ market, you should understand that you will likely end up paying at or above the asking price. This doesn’t mean you should completely blow your budget and risk putting yourself in a tough financial position. In order to make your offer competitive, while also protecting your budget, you can write an escalation clause into your offer. An escalation clause automatically outbids other offers up to a certain amount.
For example, you may offer $250,000 for a home, with an escalation clause that states that you will outbid any higher offer by $1,500 up to $280,000. This means that if another offer comes in at $255,000 your offer automatically becomes $256,500. This would continue until your max offer is reached. In that scenario, if no other offers came in, your offer would remain $256,500 for the seller to consider.
In the case of an escalation clause, you should keep in mind that the seller still has the ability to issue a counteroffer that would replace your escalation clause. This can be a great way to ensure your offer remains competitive against other offers that come in and is used often in sellers’ markets.
In Conclusion
We know buying a home in a competitive sellers’ market can seem tough. Despite the obstacles, our team has had much success securing contracts for our buyers through any market. Even when home inventory is low and buyer competition is fierce, our unique strategies can help you secure a contract on a home that is perfect for you! We welcome you to <a href="https://www.thechadwilsongroup.com/contact/" title="Contact The Chad Wilson Group" target="_blank">contact us</a> to set up a free, no-obligation strategy session with one of our Buyer Specialists to talk about your goals and share how we can help you meet those goals.
2022-07-11T10:49:00-07:002022-07-13T21:41:25-07:00Beth Carrtag:thechadwilsongroup.com,2012-09-20:18440House-Hunting Etiquette<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/House%20Hunting%20Etiquette.png" width="750" height="275" alt="House Hunting Etiquette" title="House Hunting Etiquette" />
When it comes time to start viewing homes, it is important that you leave a great first impression on the seller and their agent. Believe it or not, your actions during a showing just might be the deciding factor when it comes down to winning a contract, especially in a highly competitive sellers’ market.
When you hear the word “etiquette” you may only think about manners at the dinner table, but house hunting comes with some unwritten rules as well. Sellers have certain expectations for those touring their home. After all, it is still their property. We pulled together some of the most common “rules” for viewing homes to help set you up for success.
DO: Stick to Your Budget & Be Serious
The first step in the home-buying process is obtaining a <a href="https://www.thechadwilsongroup.com/blog/why-every-home-buyer-needs-a-pre-approval-before-home-shopping/" title="Why every home buyer needs a pre-approval" target="_blank">pre-approval</a>. This lets you know how much of a home loan you can actually be approved for so that you can shop for homes within your real budget. It also lets a seller know that you are capable of obtaining financing in the event of an offer.
This is important information to have when you begin viewing homes so that you can stick to touring homes you could actually be approved to purchase. From your real estate agent, to the seller (who likely spends time preparing for every showing), to yourself; looking at homes you can’t actually afford is a huge waste of everyone’s time.
On that same note, you should only make showing appointments for homes that you are serious about. This doesn’t mean that you have to know that you want to put an offer in on the home before you view it, but you should only tour homes that you would seriously consider purchasing.
<a href="https://www.thechadwilsongroup.com/buyers/mortgage-calculator/" title="How Much Home Can You Afford?" target="_blank"><img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/How%20much%20home%20can%20you%20afford.png" width="2250" height="400" alt="How much home can you afford?" title="How much home can you afford?" /></a>
DO: Be on Time for the Viewing
We mentioned first impressions, and nothing leaves a poor first impression like being late. Regardless of who is giving you the tour of the home, it is important that you arrive in a timely manner. In a competitive market, there may be multiple showings back to back and one late arrival throws off the whole schedule which can become problematic and frustrating.
DO: Leave Children at Home
While it is perfectly understandable that you may want to include your children in the home-buying process, we advise that you try to leave children (especially young children) home during the initial viewing. There are a few reasons for this:
Children often require a lot of your attention, and you really want to be able to spend undivided time with the home. Having distractions can cause you to miss important features of the home.
Children may not want to spend time in the home and might become restless. This is a huge decision and you want to be able to spend the time needed looking through the home.
Children are curious, and might accidentally open drawers and other areas of the home that the seller wishes to remain private (we’ll talk about this later).
If you should find that you must bring children, you should take extra care to ensure that they are respectful of the home that you are viewing. After all, you are guests in the home, and you don’t want problems to arise from your viewing should you decide that this home is “the one”.
DO: Remove Your Shoes at the Door (or Be Prepared to Cover Them)
Removing your shoes at the door might be a common courtesy in many cases, but you should also know that there are some cultures that require that shoes be removed. Many agents will provide disposable shoe covers or “booties” for those who tour the home to wear. If you are unsure, you can always ask your agent what to do.
DO: Respect the Seller’s Privacy
You are touring the home, and as we said earlier, this is a big decision. Of course, you need to be able to see the spaces of the home in order to decide if it is the one for you. When viewing a home it is perfectly acceptable to open all of the doors including bedrooms, bathrooms, closets, etc. You can also look inside any appliances that are staying with the home.
What you should avoid, however, is more private personal areas such as dresser drawers, nightstands, and medicine cabinets. Occasionally, a seller might specify areas of the home (such as a safe room) containing personal information that they do not want to be viewed. You should respect this request.
DON’T: Cancel Last Minute
You should always give adequate notice if you must cancel a showing. Your agent is taking time out of their day, possibly driving long distances to meet you at the showing, and the sellers must make arrangements to leave the home, often bringing kids and pets with them. It can be very disruptive to coordinate just one showing. Nothing is more frustrating than going through all that just to find out that the potential buyer isn’t even coming. While unavoidable situations may arise, you should do everything you can to avoid a last-minute cancellation.
DON’T: Bring Food or Drinks
This might seem obvious, but it is worth pointing out. You do not want to risk dropping crumbs or spilling drinks on the surfaces of a home that isn’t yours. So, eat that snack and finish your coffee before the showing or save it for when you are done. You should never bring food or drinks into a home with you during a viewing.
<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/Home%20security%20systems.png" width="2250" height="400" alt="Don't discuss more than you need to at a home viewing" title="Don't discuss more than you need to at a home viewing" />
DON’T: Discuss More Than You Have to During the Viewing
Take good notes, so that you can remember and discuss the home with your agent later on. These days, many homeowners have video doorbells and in-home security systems which often contain microphones. You might put yourself at a disadvantage if you discuss your thoughts on the home or your strategy for making an offer and the homeowner is listening in. You should always treat a viewing as if the seller and/or their agent can hear everything you say and see everything you do. Never trash talk the home or the seller while in or around the home as it could come back to haunt you later.
DON’T: Get Too Comfortable
Of course, the sellers want you to be able to envision yourself living in their home, but that doesn't mean you should make yourself at home during a viewing. It is not yours (yet!). Don’t lay on the bed or kick up your feet on the recliner. As a general rule of thumb, you shouldn’t touch or use any of the personal belongings in the home. Unless it is an absolute emergency, you should avoid using the bathroom during a showing, and you should always check to make sure the water is on first. Should using the bathroom be unavoidable, you should be clean and leave it as you found it.
If you are serious about the home, it would be acceptable to flush the toilet and run the sinks to check the plumbing, but it is best to get the permission of the seller or listing broker before doing so.
In Conclusion
Following these simple tips will help you leave a great first impression and keep all parties happy. This could give you an edge when it comes to making an offer. The best thing you can do is to follow the Golden Rule - treat others as you would wish to be treated. As you tour homes, put yourself in the seller’s shoes when you consider how to behave during viewings. Be respectful of everyone’s time, privacy, and specific requests. Common courtesy just may help you win a contract!
Our local real estate experts have helped hundreds of people purchase homes in the <a href="https://www.thechadwilsongroup.com/communities/" title="Homes for sale in the Greater St. Louis area" target="_blank">Greater St. Louis area</a>. Our division of responsibility and team concept allows every member to perfect their skills in their area of expertise, providing our clients with what we like to call "<a href="https://www.thechadwilsongroup.com/about/testimonials/" title="The Chad Wilson Group Testimonials" target="_blank">Simply Exceptional Service</a>."
We would love the opportunity to help you not only navigate viewings, but the entire home-buying process. Purchasing a home should be an exciting time in your life, and we want to help take the stress out of the process with our expertise and guidance. Contact us today to let us know how we can help you find your perfect home!2022-06-22T14:03:00-07:002022-11-07T12:38:01-07:00Beth Carrtag:thechadwilsongroup.com,2012-09-20:20696A Home Buyer’s Guide to Closing Costs [INFOGRAPHIC]You've found your dream home, the seller has accepted your offer, your loan has been approved, and you're eager to move into your new home. But before you get the key, there's one more step - - the closing.
Also called the settlement, the closing is the process of passing ownership of property from seller to buyer. And it can be bewildering. As a buyer, you will sign what seems like endless piles of documents and will have to present a sizeable check for the down payment and various closing costs. It's the fees associated with the closing that many times remain a mystery to many buyers who may simply hand over thousands of dollars without really knowing what they are paying for.
As a responsible buyer, you should be familiar with these costs that are both mortgage-related and government-imposed. Although many of the fees may vary by locality, here are some common fees you can expect to pay at closing when you buy a home:
<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Infographics/A_Home_Buyers_Guide_to_Closing_Costs_.png" width="880" height="3284" alt="A Home Buyer's Guide to Closing Costs" title="A Home Buyer's Guide to Closing Costs" />
Appraisal Fee
This fee pays for the appraisal of the property. You may already have paid this fee at the beginning of your loan application process.
Credit Report Fee
This fee covers the cost of the credit report requested by the lender. This too may already have been paid when you applied for your loan.
Loan Origination Fee
This fee covers the lender's loan-processing costs. The fee is typically one percent of the total mortgage.
Loan Discount
You will pay this one-time charge if you have chosen to pay points to lower your interest rate. Each point you purchase equals one percent of the total loan.
Title Insurance Fees
These fees generally include costs for the title search, title examination, title insurance, document preparation, and other miscellaneous title fees.
PMI Premium
If you buy a home with a low down payment, a lender usually requires that you pay a fee for mortgage insurance. This fee protects the lender against loss due to foreclosure. Once a new owner has 20 percent equity in their home, however, he or she can normally apply to eliminate this insurance.
Prepaid Interest Fee
This fee covers the interest payment from the date you purchase the home to the date of your first mortgage payment. Generally, if you buy a home early in the month, the prepaid interest fee will be substantially higher than if you buy it towards the end of the month.
Escrow Accounts
In locations where escrow accounts are common, a mortgage lender will usually start an account that holds funds for future annual property taxes and home insurance. At least one year advance plus two months worth of homeowner's insurance premium will be collected. In addition, taxes equal approximately to two months in excess of the number of months that have elapsed in the year are paid at closing. (If six months have passed, eight months of taxes will be collected.)
Recording Fees and Transfer Taxes
This expense is charged by most states for recording the purchase documents and transferring ownership of the property.
In Conclusion
You will receive a detailed statement of fees due prior to closing on the home so that you know exactly how much you will need to bring. However, it is important that you understand the potential out-of-pocket costs that will come with your home purchase ahead of time.
If you are thinking about buying a home in the <a href="https://www.thechadwilsongroup.com/communities/" title="St. Louis Area Communities" target="_blank">Greater St. Louis area</a>, especially if you are a <a href="https://www.thechadwilsongroup.com/buyers/first-time-buyers/" title="First-time home buyers" target="_blank">first-time home buyer</a>, you should consult a real estate professional in your area to find out which fees--and how much--you will be expected to pay during the closing of your prospective home. Keep in mind that you can often negotiate these costs with the seller during the offering stage, particularly when <a href="https://www.thechadwilsongroup.com/blog/tag/market-report/" title="St. Louis Area Real Estate Market" target="_blank">local market conditions</a> tend to favor home buyers.
Our <a href="https://www.thechadwilsongroup.com/about/" title="About The Chad Wilson Group" target="_blank" data-uw-styling-context="true" data-uw-rm-brl="false" aria-label="St. Louis Area real estate experts - opens in new tab" data-uw-rm-ext-link="" uw-rm-external-link-id="https://www.thechadwilsongroup.com/about/$st.louisarearealestateexperts">St. Louis Area real estate experts</a> have helped countless home buyers. We can help guide you through the entire process, from preparing your finances and recommending local, trusted lenders, to closing day…and beyond. Do you have questions about how you can start preparing to buy your next home? <a href="https://www.thechadwilsongroup.com/contact/" title="Contact The Chad Wilson Group" target="_blank" data-uw-styling-context="true" data-uw-rm-brl="false" aria-label="Contact us - opens in new tab" data-uw-rm-ext-link="" uw-rm-external-link-id="https://www.thechadwilsongroup.com/contact/$contactus">Contact us</a> or complete the form below and we will be in touch!2022-06-08T08:57:00-07:002022-06-19T21:16:09-07:00Beth Carrtag:thechadwilsongroup.com,2012-09-20:18434How to Get Your Finances in Order Before You Start House Hunting<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/How%20to%20Get%20Your%20Finances%20in%20Order%20Before%20You%20Begin%20House%20Hunting.png" width="750" height="275" alt="How to Get Your Finances in Order Before You Begin House Hunting" title="How to Get Your Finances in Order Before You Begin House Hunting" />
When it comes to buying a home in the St. Louis area, the sooner you prepare, the better off you will likely be. Thinking about your finances well in advance means you will have more time to build your credit, work on any debt, and save as much as possible for a down payment and other expenses that come with homeownership. Carefully preparing your finances makes you more likely to have a higher budget and qualify for lower interest rates on your mortgage. Here are some tips on how to get your finances in order before you start house hunting.
1. Do a credit check
You should have a good idea of what your <a href="https://www.thechadwilsongroup.com/blog/what-is-a-credit-score/" title="What is a Credit Score" target="_blank">credit score</a> is. A good credit score means that you will typically qualify for better interest rates, increasing your purchasing power, and decreasing the amount you pay on a loan over time.
Lenders will often require a minimum credit score, so if yours is on the lower end, the first step will likely be to speak with a lender about what they require and the steps you can take to <a href="https://www.thechadwilsongroup.com/blog/how-to-improve-your-credit-score/" title="How to Improve Your Credit Score" target="_blank">increase your score</a> to a point where loan approval will become possible.
2. Determine your debt-to-income ratio
Debt-to-income ratio (DTI) is a number that lenders will use in order to decide if you qualify for a home loan. It is an important part of your overall financial health, and it compares how much you owe each month to how much you earn. It is calculated by doing the following:
Step 1: Add up your monthly bills such as rent/house payment, child support or alimony, any loans, credit card payments, and other debts. For the purpose of mortgage approval, monthly expenses such as gas, groceries, and utilities are generally not included in this number, but you should still have an idea of what those are in setting your general budget.
Step 2: Divide the total monthly payments by your gross (before taxes) monthly income.
The result in the form of a percentage is your debt-to-income ratio. The lower this number, the less risky lenders will see you. Your lender can tell you what they require specifically when it comes to your DTI.
<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/Debt%20to%20income%20ratio%20explained.png" width="2250" height="400" alt="How to Calculate Debt-to-Income Ratio" title="How to Calculate Debt-to-Income Ratio" />
3. Save for your down payment
Most loans will require some kind of down payment. This is an amount of money that you must put towards your loan when you close on your new home. It is typically anywhere from 5%-20% of the purchase amount, but varies between the different loan types. The best way to prepare is to begin saving well in advance. Your lender can give you an idea of how much of a down payment you will need.
4. Determine your household budget
Sit down and write out your monthly income and expenses and don’t leave anything out! Just because you might be able to get approved for a particular amount does not mean you are necessarily going to be comfortable spending that. You should put on paper every detail of your finances and decide how much money you will be comfortable spending each month on your new home. If you do not currently own or rent, make sure you factor in new household expenses such as utilities, household supplies, etc.
In Conclusion
Whether you are a <a href="https://www.thechadwilsongroup.com/buyers/first-time-buyers/" title="First-Time Homebuyers" target="_blank">first-time homebuyer</a> or you have bought a house before, preparing your finances is an important part of <a href="http://thechadwilsongroup.com/blog/7-things-house-hunters-should-do-before-touring-homes/" title="How to prepare for your home search" target="_blank">preparing for your home search</a>.
A great first step, even if you are not quite ready to begin searching for homes, can be establishing a relationship with a <a href="https://www.thechadwilsongroup.com/blog/why-use-a-buyers-agent/" title="Why do you need a buyer specialist" target="_blank">real estate professional</a> who can guide you through the process, even before the official home search begins.
Our <a href="https://www.thechadwilsongroup.com/about/" title="About The Chad Wilson Group" target="_blank">St. Louis Area real estate experts</a> have helped countless home buyers. We can help guide you through the entire process, from preparing your finances and recommending local, trusted lenders, to closing day…and beyond. Do you have questions about how you can start preparing to buy your next home? <a href="https://www.thechadwilsongroup.com/contact/" title="Contact The Chad Wilson Group" target="_blank">Contact us</a> or complete the form below and we will be in touch!2022-05-26T11:57:00-07:002022-12-23T08:04:47-07:00Beth Carrtag:thechadwilsongroup.com,2012-09-20:18442Understanding the Different Types of Mortgage Loans [INFOGRAPHIC]Every home buyer is unique. Luckily, there are many mortgage loan options out there to help meet the varying needs of each <a href="https://www.thechadwilsongroup.com/buyers/" title="St. Louis Home Buyers" target="_blank">home buyer</a> in the <a href="https://www.thechadwilsongroup.com/communities/" title="Homes for Sale in St. Louis area" target="_blank">Greater St. Louis area. </a>
Many people shy away from homeownership because they are under the misconception that they must have perfect credit or be able to bring a 20% downpayment. This simply isn’t true. Whether you have amazing credit with a large down payment or your credit is less than perfect and you are looking to get into a home with as little cash as possible, you would be surprised at the multitude of ways that mortgage lenders can make homeownership happen.
Knowing and understanding the nuances of the different home loan options, especially as a <a href="https://www.thechadwilsongroup.com/buyers/first-time-buyers/" title="First-Time Home Buyers in St. Louis" target="_blank">first-time homebuyer</a>, can be confusing to navigate on your own. So first, let’s take a look at some of the key features of the main types of mortgage loans in the infographic below.
<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Infographics/Understanding_the_Types_of_Mortgage_Loans_CWG.png" width="1500" height="2800" alt="Understanding the Different Types of Mortgage Loans" title="Understanding the Different Types of Mortgage Loans" />
What is a Conventional Loan?
A conventional loan or standard loan is one that is not backed by a government agency (such as FHA, USDA, and VA loans). They are originated, backed, and serviced by private lenders, such as banks and credit unions. This type of loan will typically require the highest credit score but lower interest rates for borrowers with excellent credit. While 20% down is not required on conventional loans, borrowers who do not put down 20% will be required to pay private mortgage insurance each month. The good news is that the private mortgage insurance on a conventional loan will automatically terminate once your principal balance reaches 78% of the home’s original value. There are many types of conventional loans, including fixed-rate, adjustable-rate, and jumbo loans. You can use a conventional loan to purchase pretty much any type of property, from primary residences to vacation homes and more.
What is an FHA Loan?
An FHA loan is insured by the Federal Housing Administration, an agency of the U.S. Government. They must be obtained through an FHA-approved mortgage lender. FHA loans offer borrowers the option of putting down as little as 3.5% and offer more lenient credit score requirements than conventional loans (potentially as low as 500 in some cases, but 580 is more typical). If you have less than excellent credit, an FHA loan will often offer a lower interest rate than a subprime conventional loan. An FHA loan also requires that you pay mortgage insurance for the life of the loan. However, this does not necessarily mean you are stuck paying mortgage insurance forever. Once they have the required 20% equity, many FHA borrowers choose to refinance to a conventional mortgage down the road in order to stop paying mortgage insurance premiums. An FHA loan can only be used to purchase primary residences and must meet certain government appraisal standards.
What is a USDA Loan?
A USDA loan is issued through the U.S. Department of Agriculture and is designed to assist buyers with lower-income and lower-credit purchase homes in particular geographic areas. In order to qualify for a USDA loan, you must be looking to purchase a home in an eligible rural or suburban area. The program requires that borrowers are using the loan to purchase a primary residence and their income must fall below certain income limits, determined by median income levels in their area. Most lenders will require a credit score of at least 640 to qualify for this type of loan.
What is a VA Loan?
A VA loan is backed by the U.S. Department of Veterans Affairs and is available to certain U.S. Service Members and spouses. Although there are many <a href="https://www.thechadwilsongroup.com/blog/va-home-loan-myths/" title="Myths Surrounding VA Home Loans" target="_blank">myths surrounding VA loans</a>, they remain one of the most amazing benefits to U.S. Service Members who <a href="https://www.va.gov/housing-assistance/home-loans/eligibility/" title="Who Qualifies for a VA Home Loan?" target="_blank">qualify</a>. VA loans offer qualified borrowers lower interest rates, no or low down payment, and no private mortgage (PMI) requirements, making them very attractive to many borrowers. They can be used to purchase a home, finance the construction of a new home, or renovate or add on to an existing home. Although the minimum credit score to qualify is set by the lenders, the credit requirements are typically more lenient than that of conventional loans.
Which Type of Loan is Best for Me?
Determining what type of loan is most beneficial for you is best answered by a local, trusted mortgage lender who can examine your unique situation and compare the loan options available to you based on your credit, down payment, and other qualifying factors.
In Conclusion
With so many lending options out there, buying a home may not be as out of reach as you think. If you are even considering purchasing a home, it may be worth speaking with a lender to examine what options are available to you. Even if you do not qualify now, a lender can help you understand what actions you can take to <a href="https://www.thechadwilsongroup.com/blog/how-to-improve-your-credit-score/" title="How to Improve Your Credit" target="_blank">improve your credit</a> or situation to qualify for a mortgage.
We recommend that you work with a local lender that has a proven track record, great communication, and consistently closes on time. Also, a good lender will offer a variety of loan packages, competitive interest rates/closing costs, and in-house underwriting, and will assist you in finding the <a href="https://www.thechadwilsongroup.com/buyers/mortgage-calculator/" title="St. Louis Mortgage Calculator" target="_blank">mortgage payment plan</a> that fits your budget.
If you have questions about obtaining a mortgage loan, need help evaluating your loan options, or have any other real estate needs, our team is ready and eager to help! Fill out the form below and a team member will be in touch to discuss how we can meet your unique needs.2022-05-19T11:43:00-07:002022-11-28T13:28:16-07:00Beth Carrtag:thechadwilsongroup.com,2012-09-20:18475How to Improve Your Credit Score [INFOGRAPHIC]When you begin to think about buying your next home in the <a href="https://www.thechadwilsongroup.com/communities/" title="St. Louis Area Communities and Homes For Sale" target="_blank">St. Louis area</a>, you want to be sure that you have a solid credit score that will give you the best chances to qualify for a mortgage. Your <a href="https://www.thechadwilsongroup.com/blog/what-is-a-credit-score/" title="What is a credit score?" target="_blank">credit score</a> is a rating of your financial risk to a lender and is used to determine things like your interest rate and whether or not a lender will give you a loan at all. Many lenders will require a minimum credit score to qualify for a home loan. If you find yourself in a position where you cannot meet this minimum credit score, or you wish to improve your score to qualify for a better interest rate, don’t fret! We have put together some simple tips and tricks to help you understand how to improve your credit score in order to qualify for a home loan in the St. Louis area.
<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/How_to_Improve_Your_Credit_Score_1_1.png" width="880" height="1955" alt="How to Improve Your Credit Score" title="How to Improve Your Credit Score" />
Check Your Credit Report For Any Errors
You should check your credit report regularly to ensure there are no errors. Keeping a close eye on your report means you can dispute any mistakes quickly before they have a major effect on your credit. There are many places to check your credit report, including <a href="https://www.annualcreditreport.com/" title="Free Annual Credit Report " target="_blank">https://www.annualcreditreport.com/</a> which allows you to pull a full credit report for free each year. Additionally, you can consider credit monitoring services, but these will often come with a fee.
Pay Down Your Credit Card Balances
The lower your credit card balances, the higher your score will typically be. If you carry high credit card balances, paying them down as much as possible is a great way to increase your score, as lenders will see you as less risky when you carry less debt. A great practice is to pay off your balances each month.
Don’t Max Out Your Credit Cards
You should never charge your credit cards to their limit. Keeping a credit card balance below 30% of its limit is the best practice to keep your credit score high and paying balances below the 30% threshold will improve your credit score.
After Credit Trouble, Wait 1 Year to Apply For a Mortgage
If you have run into credit trouble, such as missed payments, collections, etc, you should wait at least a year before applying for a mortgage. The penalties for these situations are less severe after a year has passed and you are more likely to qualify/get better rates as long as you have not run into additional problems.
Don’t Charge More or Open New Credit Accounts After Applying For a Mortgage
There are several <a href="https://www.thechadwilsongroup.com/blog/things-you-shouldnt-do-after-applying-for-a-mortgage/" title="Things You Shouldn't Do After Applying for a Mortgage" target="_blank">things you shouldn’t do after applying for a mortgage</a>, and increasing your debt is absolutely one of them. It is easy to get excited about that house that you just secured a contract on, but do not run out and open new credit cards and run them up to furnish the home. This can affect your credit and potentially change your mortgage terms or even make it so that you no longer qualify at all.
Shop For Mortgage Rates at One Time
When you are shopping lenders and mortgage rates, do it all at one time. Multiple inquiries can hurt your credit, but when there are multiple inquiries for the same type of credit (such as a mortgage) over a very short period of time, it will more than likely be counted as one inquiry and have less of an impact on your credit score.
In Conclusion
Building your credit and having a solid credit score is an important part of the home buying process if you plan to finance your home (which most people do). If you are a <a href="https://www.thechadwilsongroup.com/buyers/first-time-buyers/" title="St. Louis area first time home buyers" target="_blank">first-time home buyer</a> looking to build credit for your first home purchase, or simply someone looking to improve your credit score before applying for a mortgage, following these tips can be super helpful.
For a more personalized plan to improve your credit score, establishing a relationship with a local, trusted lender is a great first step! They can look at your specific credit situation and help you understand your lending options now, and what, if any, steps you might want to take to improve your credit score for more ideal loan terms. Obtaining a <a href="https://www.thechadwilsongroup.com/buyers/mortgage-pre-approval/" title="Mortgage pre-approval form" target="_blank">mortgage pre-approval</a> is a crucial early step in the home buying process. We recommend that you work with a local lender that has a proven track record, great communication, and consistently closes on time. We have worked with hundreds of home buyers and have experience with a multitude of local lenders that we know and trust.
If you are considering <a href="https://www.thechadwilsongroup.com/buyers/" title="Buying a home in St. Louis area" target="_blank">buying a home</a> in the Greater St. Louis area, our <a href="https://www.thechadwilsongroup.com/about/" title="Meet The Chad Wilson Group" target="_blank">team of experts</a> is willing and ready to guide you through every step of the process. If you have questions about how you can obtain a mortgage loan or any real estate needs, don’t try to navigate it alone. Fill out the form below and a team member will be in touch to discuss how we can serve you. 2022-05-12T10:48:00-07:002023-03-07T14:26:54-07:00Beth Carrtag:thechadwilsongroup.com,2012-09-20:184778 Negotiating Techniques for Home Buyers<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/8%20Negotiating%20Techniques%20for%20Home%20Buyers.png" width="750" height="275" alt="8 Negotiating Techniques for Home Buyers" title="8 Negotiating Techniques for Home Buyers" />
You have been searching and searching for the perfect new home, and you have finally found it. You are ready to put in an offer! As a home buyer in the St. Louis area, you want to make sure you present a strong offer that sets you apart from the competition, particularly in a seller’s market. You might be surprised to know that sellers do not always choose which offer to accept solely based on the price you are willing to pay. There are many factors that often go into their final decision. Understanding what these may be and what you can do as a buyer to give yourself the best chances of getting your offer accepted is an important part of the home buying process. These 8 negotiating techniques for St. Louis home buyers will help you set yourself apart when it comes time to put in an offer.
1. Know Your Finances
Knowing your bottom line financially can really clear your head a lot before you begin negotiating on a new home purchase. It is imperative to be 100% realistic about your finances so you will know upfront how much wiggle room you have to go up in price on an offer particularly when you are in a seller’s market.
When you consider buying a home in the St. Louis area, we recommend you start by sitting down with a lender to communicate what price point you want to be at, find out what the interest rates are looking like, and learn how much of a down payment will be required. Your choice of lender is more important than many home buyers realize. We highly recommend speaking with local lenders who have a reputation for excellent service and on-time closing. Using a reputable, respected, and well-known lending institution is definitely something a seller will notice when you submit your pre-approval letter with your offer.
2. Hire a Real Estate Professional
Many people think of a real estate professional as someone to help them find their perfect home with as few missing “must-haves'' as possible. But a REALTOR® is so much more! Real estate agents work as your advocate in every part of the home-buying process. They know the local market and have professional knowledge on how to navigate it based on current conditions.
Remember, as a buyer you probably have a very firm idea in mind of your must-haves and must-not-have factors in your new home; therefore, it is important to communicate these factors with the agent you hire, because an experienced REALTOR® is trained to not only find the perfect home you are looking for, they have also been trained to negotiate well for their clients. An experienced agent will have tried and true techniques that work and they will do whatever they can to get you into the home of your dreams. You should look for real estate professionals who have proven success in your market and a reputation for excellence.
To find the perfect agent for your needs it’s important to interview REALTORS® in your local area. Word of mouth is also a great way to find a reputable real estate agent in your area, so ask your friends and co-workers if they know an agent that they have had a positive experience with.
<a href="https://www.thechadwilsongroup.com/blog/why-use-a-buyers-agent/" title="Why You Need a Buyer's Agent" target="_blank"><img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/How%20a%20Buyer's%20Agent%20Can%20Help%20You.png" width="2250" height="400" alt="How a Buyer's Agent Can Help You" title="How a Buyer's Agent Can Help You" /></a>
3. Conduct Research
Be sure to do your research. Compare sale prices for homes that interest you. You can check public records online and gather as much information to determine confidently where and what you are waiting to purchase. Doing this research in advance can help you choose what to pursue or back away from in a listing. Your real estate agent can be a huge help in this area because they are local area experts and can help you understand and interpret any data you may find.
4. Be Personal
Most buyers in today's market write letters to the sellers to express their interest in the home. Quite often they include a family photo or two and describe to the sellers what they love about the house and why they would love to be the new homeowners. The letter should be heartwarming but not over the top giving the impression of desperation. It’s just really a nice touch to put a human face to an offer. Many may think real estate is all about numbers and expediency, but real estate is a relationship-building business as well.
Many times sellers have expressed a deep desire to sell their home to a family that will love their home as much as they have. Often sellers are leaving their first home or the one they raised their family in and it is the root of many happy memories. Therefore, it is important that the seller feel a connection to you through the sincerity of your letter. It helps make the seller feel that you truly ARE the PERFECT buyer. To do this you could:
Include the names and ages of your children (if applicable)
Add some history about your prior home and how it relates to this home
Your occupation, education, and struggles to get where you are in life
Explain why YOU deserve to live in this home and how well you will care for it
List the specific reasons why you fell in love with this home
This is not a required part of making an offer on a home but many buyers choose to do this, especially in a seller's market where you are likely to run into a lot of competition from other buyers.
5. Bring Your Best Offer First
In a highly competitive environment, such as a seller's market, bidding wars are very common, but it’s truly not all about the price. Increasing purchase prices with escalation clauses may be common, but there are other ways to stand out and get your offer accepted. Adding, removing, or modifying contingencies can be a creative way to separate yourself from the masses. You can add a larger earnest money down payment, entice the seller with a quick closing date, or offer a flexible closing date if the sellers are also in the market to purchase.
Although most lenders don’t require home inspections, such as termite, radon, water, septic, etc, the importance of these inspections should not be dismissed as the inspections allow the revealing of a great deal about the home. Discovering there is a foundation crack, mold, or a leaky roof often gives the buyer the ability to negotiate terms since these items would have to be remedied eventually. Even if you do not intend to ask the seller to make any repairs, performing inspections is still highly recommended so that you can make an informed decision. If the market is highly competitive, you can have your real estate agent write into an offer to purchase the ability to have an inspection without the intention to ask for repairs. As an alternative to waiving inspections, you may want to consider purchasing a home warranty that is affordable and delivers extensive coverage.
You should discuss with your real estate professional what other contingencies might be considered to keep your offer competitive. Do not hold back on what you think will be your best offer. Present this first. Not presenting your best offer first may mean that the seller skips right over your offer and signs with another buyer.
<a href="https://www.thechadwilsongroup.com/blog/what-to-expect-when-making-an-offer/" title="What to Expect When Making an Offer on a Home" target="_blank"><img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/What%20To%20Expect%20When%20Making%20an%20Offer%20on%20a%20Home.png" width="2250" height="400" alt="What To Expect When Making an Offer on a Home" title="What To Expect When Making an Offer on a Home" /></a>
6. Keep Offers Tight
First and foremost, determine how far you are willing to stretch your dollars. You should have a deep understanding of what the current market conditions are so you know how much to offer. In a seller’s market, you probably will not get away with offering below the seller's asking price, and may even need to offer higher in order to win the bid. In other markets, you might be able to offer less. Your real estate agent will have a strong understanding of the current market and can help you decide what gives you the best chance. In the current housing environment, there are many more offers than available homes. A low offer can often offend the seller.
7. Write a Clean Offer
It’s also imperative that you write a clean offer. This means you don’t leave out ANY essential elements or give the seller any reason to write a counter offer. Your goal is to make your written contract a no-brainer for the seller to sign the offer the way you wrote it. This can be achieved by following these steps:
Verify the address is correct
Add up the earnest money deposit, loan amounts, and balance of the down payment to make sure the numbers equal the sale price
Check the closing date and possession terms
Discuss motivations for changing the contract default periods
Review seller and buyer paid items and determine whether these items are red flags for you
Review how much time are you giving the seller to respond and who needs to receive the response to designate acceptance
Also, don’t let small items become big issues. For example, it is customary for a buyer to pay title and escrow fees. These can be relatively small amounts and might be something that you avoid asking the seller to pay, as it can make your offer unattractive, particularly if they have several other offers that do not ask for these items.
8. Know When to Walk Away
This is a very important aspect of home buying. Be level-headed, reasonable, and neutral. Buying a home can become very emotional so this can be tough. Set a budget for your home purchase and stick to it. Try to NOT get emotional and move on to the next property, if it becomes necessary. Certain sellers can be unreasonable, but their overpriced listings will likely sit on the market longer. Great homes that are competitively priced can (and most likely will) draw multiple offers in any market, and in a seller’s market, they definitely will. Don’t let this market trend propel you to go beyond your budget or agree to concessions (such as waiving an inspection) when it’s just not in your best interest to do so.
In Conclusion
Knowing how to make the best, most attractive offer on a home for sale means knowing and understanding the market, what competition you might face, and more. Having a real estate professional in your corner when it comes time to make an offer on a home means you will have an expert on your side, who can guide you through the entire process step-by-step and make sure you are writing the strongest offer with the best terms possible for your situation.
Our team is hard at work securing contracts for our buyers, even in strong sellers' markets. How can we help you find your next home? What questions fo do you have about the home buying process? <a href="https://www.thechadwilsongroup.com/contact/" title="Contact The Chad Wilson Group" target="_blank">Contact us</a> or fill out the form below with any questions or needs you may have and we will be happy to help you with all things real estate so you don't have to navigate the process alone!2022-05-09T10:30:00-07:002022-11-22T17:01:57-07:00Laura Peytontag:thechadwilsongroup.com,2012-09-20:184397 Things House Hunters Should Do Before Touring Homes<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/What%20to%20do%20before%20touring%20homes.png" width="750" height="275" alt="What to do before touring homes" title="What to do before touring homes" />
Homeownership is a major life decision both financially and emotionally. That’s why it is important to put in the preparation work long in advance of touring homes to set yourself up for the best success in your home-buying journey. Here are some steps to take before you begin touring home:
1. Get your finances in order
Do a credit check
You should have a good idea of what your <a href="https://www.thechadwilsongroup.com/blog/what-is-a-credit-score/" title="What is a credit score?" target="_blank">credit score</a> is. A good credit score means that you will typically qualify for better interest rates, increasing your purchasing power, and decreasing the amount you pay on a loan over time.
Lenders will often require a minimum credit score, so if yours is on the lower end, the first step will likely be to speak with a lender about what they require and the steps you can take to increase your score to a point where loan approval will become possible.
Determine your debt-to-income ratio
Debt-to-income ratio (DTI) is a number that lenders will use in order to decide if you qualify for a home loan. It is an important part of your overall financial health, and it compares how much you owe each month to how much you earn. It is calculated by doing the following:
Step 1: Add up your monthly bills such as rent/house payment, child support or alimony, any loans, credit card payments, and other debts. For the purpose of mortgage approval, monthly expenses such as gas, groceries, and utilities are generally not included in this number, but you should still have an idea of what those are in setting your general budget.
Step 2: Divide the total monthly payments by your gross (before taxes) monthly income.
The result in the form of a percentage is your debt-to-income ratio. The lower this number, the less risky lenders will see you. Your lender can tell you what they require specifically when it comes to your DTI.
<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/Debt%20to%20income%20ratio%20explained.png" width="2250" height="400" alt="What is debt-to-income ratio" title="What is debt-to-income ratio" />
Save for your down payment
Most loans will require some kind of down payment. This is an amount of money that you must put towards your loan when you close on your new home. It is typically anywhere from 5%-20% of the purchase amount. The best way to prepare is to begin saving well in advance. Your lender can give you an idea of how much of a down payment you will need.
Determine your household budget
Sit down and write out your monthly income and expenses and don’t leave anything out! Just because you might be able to get approved for a particular amount does not mean you are necessarily going to be comfortable spending that. You should put on paper every detail of your finances and decide how much money you will be comfortable spending each month on your new home. If you do not currently own or rent, make sure you factor in new household expenses such as utilities, household supplies, etc. <a href="https://www.thechadwilsongroup.com/buyers/mortgage-calculator/" title="Use our Mortgage Calculator" target="_blank">Use our Mortgage Calculator</a> to estimate what your mortage payment will be based off of various price points, interest rates, with various amounts of money down.
2. Get pre-approved
It is important, and in many cases crucial, that you start the home buying process by getting <a href="https://www.thechadwilsongroup.com/blog/why-every-home-buyer-needs-a-pre-approval-before-home-shopping/" title="Why buyers need mortgage pre-approval" target="_blank">pre-approved for a mortgage loan</a> if you plan on borrowing money to buy your home, which most people do. This will let you know how much you qualify for and can help guide your home search by setting a realistic budget.
3. Explore all of your loan options with a lender
There are many loan options available, so it is a great idea to talk to a lender about what might work best for you. We highly recommend interviewing multiple lenders and working with a lender with a good track record and knowledge of the local market in which you are searching for homes.
<a href="https://www.thechadwilsongroup.com/blog/questions-to-ask-before-choosing-a-mortgage-lender/" title="Questions to ask when choosing a mortgage lender" target="_blank"><img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/Questions%20to%20as%20a%20mortgage%20lender.png" width="2250" height="400" alt="Questions to as a mortgage lender" title="Questions to as a mortgage lender" /></a>
4. Set your priorities for the features and condition of the home
Forecast - think beyond this year. Ask yourself how long you envision yourself in this next home and what features this home will need as your family situation changes during that time period.
You can also start by making a list of your “wants” and “needs”. It is not often that home buyers find a home on the resale market that has every single feature they want and need. Identifying which features are crucial to you and which you might be willing to compromise on is important to do before you begin touring homes for sale.
5. Identify your ideal area
Think about what you want from your new home. Identify things like what school districts you prefer, where you work, and what recreational and shopping opportunities you would like to have nearby. We put together this list of <a href="https://www.thechadwilsongroup.com/blog/choosing-where-to-live-st-louis/" title="Questions to identify your ideal place to live" target="_blank">6 questions to help identify your ideal place to live</a>.
6. Get familiar with the real estate market
Knowing what is going on in your local real estate market will help give you an idea of what to expect. Our <a href="https://www.thechadwilsongroup.com/sellers/free-market-update/" title="Request a FREE Monthly Market Update today!" target="_blank">free Monthly Market Updates</a> are a great resource if you are looking for a home in the Greater St. Louis area.
<a href="https://www.thechadwilsongroup.com/blog/category/market-conditions/" title="St. Louis Area Market Conditions" target="_blank"><img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/St.%20Louis%20area%20market%20updates.png" width="2250" height="400" alt="St. Louis Area Market Conditions" title="St. Louis Area Market Conditions" /></a>
7. Interview real estate professionals
Working with an experienced <a href="https://www.thechadwilsongroup.com/blog/why-use-a-buyers-agent/" title="Why you need a Buyer Specialist" target="_blank">Buyer Specialist </a>puts a powerful advocate in your corner during the home buying process. There are many to choose from. You should research and interview real estate professionals before choosing the one that is best for you.
In Conclusion
Whether you are an experienced or <a href="https://www.thechadwilsongroup.com/buyers/first-time-buyers/" title="First-Time Home Buyers St. Louis Missouri" target="_blank">first-time homebuyer</a>, doing these things before you get serious about touring homes will set you up for success.
Our local real estate experts have helped hundreds of people purchase homes in the <a href="https://www.thechadwilsongroup.com/communities/" title="Homes for sale in St. Louis" target="_blank">Greater St. Louis area</a>. Our division of responsibility and team concept allows every member to perfect their skills in their area of expertise, providing our clients with what we like to call "<a href="https://www.thechadwilsongroup.com/about/testimonials/" title="The Chad Wilson Group testimonials" target="_blank">Simply Exceptional Service</a>."
Would you like to know more about the home buying process? Would you like to hear more about what our team can do for you when it comes to buying your next home? <a href="https://www.thechadwilsongroup.com/contact/" title="Contact The Chad Wilson Group" target="_blank">Contact us</a> or complete the form below with any questions or needs you may have and we will be in touch!
2022-05-02T13:33:00-07:002022-11-22T17:27:43-07:00Jennifer Smithtag:thechadwilsongroup.com,2012-09-20:18444First-time Home Buyer: Vocab Cheat SheetBuying your first home is such an exciting time, but it can easily become overwhelming and feel quite complicated. Many <a href="https://www.thechadwilsongroup.com/buyers/first-time-buyers/" title="First-Time Home Buyers" target="_blank">first-time homebuyers</a> in the St. Louis area do not know what to expect from the process, which is perfectly understandable. It is quite common to feel confused. We recommend working with an <a href="https://www.thechadwilsongroup.com/blog/why-use-a-buyers-agent/" title="Why you need a buyer's agent" target="_blank">experienced real estate agent</a> to help make the process less confusing. Regardless, there are many terms that will arise throughout the home buying journey, and even if you are working with a real estate agent, it is a great idea to have a good handle on what these terms mean so you understand what is happening. That is why we have put together this handy first-time home buyer vocab cheat sheet. Check it out below!
<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/First_Time_Home_Buyer_Vocab_Cheat_Sheet_1.png" width="1000" height="2800" alt="First-Time Home Buyer: Vocab Cheat Sheet" title="First-Time Home Buyer: Vocab Cheat Sheet" />
Fortunately, you don't have to navigate the home buying process on your own! If you are thinking about buying, we recommend that you connect with an experienced Buyer Specialist to help guide you through the home buying process and be an advocate for your needs and interests.
Our local real estate experts have helped hundreds of people purchase their first home in the <a href="https://www.thechadwilsongroup.com/communities/" title="Homes for Sale in Greater St. Louis" target="_blank">Greater St. Louis area</a>. Our division of responsibility and team concept allows every member to perfect their skills in their area of expertise, providing our clients with what we like to call "<a href="https://www.thechadwilsongroup.com/about/testimonials/" title="The Chad Wilson Group Testimonials" target="_blank">Simply Exceptional Service</a>." The best part? You can typically work with our team as a buyer with little to no cost to you as the commission to our Buyer Specialists is most commonly paid by the seller.
Would you like to know more about the home buying process? Would you like to hear more about what our team can do for you when it comes to buying your first or next home? <a href="https://www.thechadwilsongroup.com/contact/" title="Contact The Chad Wilson Group" target="_blank">Contact us</a> or complete the form below with any questions or needs you may have and we would love to help you make your real estate dreams come true!2022-04-18T10:03:00-07:002022-11-01T17:30:24-07:00Beth Carrtag:thechadwilsongroup.com,2012-09-20:18200What to Expect When Making an Offer on a Home<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/Making_an_Offer_Blog_Header.png" width="750" height="275" alt="What to Expect When Making An Offer on a Home" title="What to Expect When Making An Offer on a Home" />
You Found a Home You Like. Here’s How to Make an Offer.
Maybe you got lucky and the first home you toured was a perfect fit, or maybe you have viewed many homes to find the right one. Either way, eventually, with the help of your buyer’s agent, you will find a home that meets your needs and you will make an offer to purchase.
Before you write that offer, your buyer’s agent will have connected you with a lender to get <a href="https://www.thechadwilsongroup.com/blog/why-every-home-buyer-needs-a-pre-approval-before-home-shopping/" title="Why every home buyer needs a pre-approval" target="_blank">pre-approved for financing</a>, unless you are paying cash for the home. In today’s market, pre-approval is absolutely necessary to make a competitive offer. Sellers probably won’t even consider an offer unless they know you are financially ready and able to purchase.
With pre-approval in hand, you are ready to write an offer that sets you apart from the competition while still being appropriate given the current market conditions. How does that work? The key is your <a href="https://www.thechadwilsongroup.com/blog/why-use-a-buyers-agent/" title="Why you need a Buyer's Agent " target="_blank">buyer’s agent </a>and the steps they take to prepare, including the following:
Your buyer’s agent will do a thorough market analysis of the home to compare it to similar homes in the neighborhood or area, taking into consideration the condition of the home. Using this comparable data, your agent will recommend an appropriate price range for your offer that is strong, yet reasonable given the <a href="https://www.thechadwilsongroup.com/blog/category/market-conditions/" title="St. Louis Area Real Estate Market" target="_blank">current market conditions</a>.<br /><br />
Your agent will prepare the contract and supporting documents to create an attractive and complete offer that is easy to follow and understand for the seller and their agent. We could tell many stories about incomplete and sloppy offers that we have received on homes we have listed, and how eager buyers lost out because their agent did not do their best work to follow directions and meet expectations. That is not <a href="https://www.thechadwilsongroup.com/about/" title="About The Chad Wilson Group" target="_blank">The Chad Wilson Group</a> standard, and we pride ourselves on our level of professionalism and care for our clients. Our reputation in the industry and our volume of business speaks to the <a href="https://www.thechadwilsongroup.com/about/testimonials/" title="The Chad Wilson Group Testimonials" target="_blank">simply exceptional service</a> we provide to each of our clients.<br /><br />
Your buyer’s agent will follow up with the seller’s agent to make sure the offer was received and to answer any questions they might have. They will also confirm the timeline for offer review so you know when to expect a response. This additional level of communication sets the tone with the sellers that you are a serious buyer and will work to make the transaction as smooth as possible. Once again, working with a buyer’s agent from The Chad Wilson Group that has an industry reputation of being top of the class can make a difference. When seller’s agents tell their sellers that they have worked with The Chad Wilson Group before and our transactions flow smoothly and seamlessly to closing, it can set your offer apart from the pack.<br /><br />
You can expect to receive one of three responses to your offer:
Your offer is accepted. Hooray! As soon as all documents are signed by both parties, you are on your way to calling yourself a homeowner!<br /><br />
The seller makes a counteroffer to your contract. With the help of your buyer’s agent, you will consider their counteroffer and either accept it, reject it, or counteroffer with something that works for you.
The seller declines your offer. With the help of your buyer’s agent communicating with the seller’s agent, you may be able to make a different offer that is more appealing to the seller, if that works for your budget and circumstances, or move on to a home that better suits your needs.
Are you ready to get started? We are eager to help you and answer any questions you might have. Complete the form below and an agent will <a href="https://www.thechadwilsongroup.com/contact/" title="Contact The Chad Wilson Group" target="_blank">contact</a> you shortly.2022-03-29T10:27:00-07:002022-12-27T07:41:07-07:00Heather Webertag:thechadwilsongroup.com,2012-09-20:18433What is a Credit Score?<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/Blog_Header_Images_1.png" width="750" height="275" alt="What is a Credit Score?" title="What is a Credit Score?" />
When it comes to buying a home, the better your credit score, the more likely you are to lock in a good interest rate on a mortgage. But what is a credit score exactly? A credit score is a number lenders use to help them decide how likely it is that they will be repaid on time if they give a person a loan or credit card. Your personal score is built on your credit history. Credit scores range between 200 and 850, with scores above 620 considered desirable for obtaining a mortgage.
The following factors affect your score:
Your payment history. Do you have a lot of late payments or do you pay your credit card bills on time? Bankruptcy filing, liens, and collection activity also affect your history.
Total debt owed. If you owe a great deal of money on numerous accounts, it can indicate that you are overextended. However, spreading debt among several accounts can help you avoid approaching the maximum on any individual credit line.
The length of your credit history. In general, the longer an account has been open, the better.
How much new credit you have. The age of your accounts matters. New credit, whether in the form of installment plans or new credit cards, is considered riskier, even if you pay down the debt promptly.
Types of credit. Generally, it’s desirable to have more than one type of credit—such as installment loans, credit cards, auto loans, and a mortgage.
Monitoring your credit on a regular basis can help you keep a close eye on how these factors affect your score and what you may be able to do to improve your score. The best way to improve your score is to pay bills on time and in full. A decent credit score is essential for your financial well-being because the higher it is, the less of a credit risk you are.
Looking for more information on <a href="https://www.thechadwilsongroup.com/blog/tag/getting-a-mortgage/" title="Getting a Mortgage" target="_blank">obtaining a mortgage</a> or <a href="https://www.thechadwilsongroup.com/buyers/" title="Buying a HOme in St. Louis Metro Area, MO" target="_blank">buying a home</a> in the <a href="https://www.thechadwilsongroup.com/communities/" title="Homes for Sale in Greater St. Louis Metro Area" target="_blank">Greater St. Louis area</a>? We are here to help! We would be happy to answer any questions you may have and can even connect you with a local, trusted lender if needed. <a href="https://www.thechadwilsongroup.com/contact/" title="Contact The Chad Wilson Group" target="_blank">Contact us</a> today or fill out the form below. 2022-03-21T11:43:00-07:002022-12-23T07:57:36-07:00Jennifer Clarktag:thechadwilsongroup.com,2012-09-20:18432Why Every Home Buyer Needs a Pre-Approval Before Home Shopping<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/Why_Every_Home_Buyer_Needs_a_Pre-Approval_Blog_Header.png" width="750" height="275" alt="Why Every Home Buyer Needs a Pre-Approval Before Home Shopping" title="Why Every Home Buyer Needs a Pre-Approval Before Home Shopping" />
It is natural to get excited when you are shopping for a new home. Looking at houses online is a fun pastime for many people, even if they aren’t in the market for a home, so buyers often start their home buying process by <a href="https://www.thechadwilsongroup.com/property-search/search-form/" title="Search for a Home" target="_blank">searching for homes</a> for sale online.
But they are missing a very important first step that could cost them time and money.
The first step buyers should take as they consider jumping into the home buying market is to talk with a reputable lender and get pre-approval. What does that mean?
A lender will look at your financial situation and help you establish a budget for a mortgage you can afford. They will also explain the various loan options that are available to you so you can choose one that works best for your circumstances. There are often special deals available to specific groups of people, such as <a href="https://www.thechadwilsongroup.com/buyers/first-time-buyers/" title="First-Time Home Buyer Resources" target="_blank">first-time home buyers</a>, veterans, those who could benefit from down payment assistance, and more. With this information in hand, you will know the price range for your house search, if you need to be ready to make a down payment…and how much that might be, and the amount of your monthly mortgage payment, making the home search process much more efficient.
Lenders will also help you understand how changes in the interest rate can impact your budget. Interest rates can change daily, and an experienced lender can help you lock into the best rate available to you so you have more purchasing power for your new home.
When you find a home you love and decide you are ready to make an offer, your buyer’s agent will present this pre-approval letter with your offer to show the sellers that you are a serious buyer. In today’s competitive real estate market, most sellers won’t consider an offer without this pre-approval.
“It is expected in the current market that most homes we list for sale in the St Louis Region will have multiple offers to consider,” said Chad Wilson, team leader of The Chad Wilson Group. “One of the first things our sellers look for is if the buyer has been pre-approved and if that approval was made by a lender that has a stellar reputation. They won’t waste their time considering an offer if that quality pre-approval isn’t included with the offer. They will just move on to the next one.”
<a href="https://www.thechadwilsongroup.com/blog/tag/getting-a-mortgage/" title="Information on Getting a Mortgage" target="_blank"><img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/Information_on_Getting_a_Mortgage.png" width="2250" height="400" alt="Information on Getting a Mortgage" title="Information on Getting a Mortgage" /></a>
If you are ready to get serious about <a href="https://www.thechadwilsongroup.com/buyers/" title="Buying a Home With The Chad Wilson Group" target="_blank">buying a home</a>, let’s talk! If you don’t already have a lender you trust to help you get pre-approved, we can refer you to one that we routinely work with to help you get started. It’s the best first step you can take!2022-03-18T11:31:00-07:002022-03-20T19:27:34-07:00Heather Webertag:thechadwilsongroup.com,2012-09-20:18587What to Expect During a Home InspectionAs a <a href="https://www.thechadwilsongroup.com/buyers/" title="Buy a Home With The Chad Wilson Group" target="_blank">home buyer</a> in the <a href="https://www.thechadwilsongroup.com/communities/" title="Homes for sale in St Louis" target="_blank">Greater St. Louis area,</a> you will likely choose to get the home inspected once you are under contract. Although some buyers choose to waive this in their contracts for one reason or another, it is a good idea to hire an ASHI-certified home inspector to look the home over, even if you do not intend to ask the seller to make any repairs.
A home inspection gives you more detailed information about the overall condition of the home prior to purchase. In a home inspection, a qualified inspector takes an in-depth, unbiased look at your potential new home to:
Evaluate the physical condition: Structure, construction, and mechanical systems
Estimate the remaining useful life of the major systems, equipment structure, and finishes
Identify items that need to be repaired or replaced
You can think of it kind of like a yearly physical from a medical doctor. A home inspector, in this situation, will not necessarily pass or fail a home, but rather they will give you a better understanding of the home’s physical condition so that you can make a well-informed decision about your purchase.
Below is a helpful infographic and more detailed information on what inspectors typically look for to help you understand what to expect during a home inspection.
<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/What_to_Expect_During_a_Home_Inspection_Infographic_1.png" width="1000" height="2800" alt="What to expect during a home inspection" title="What to expect during a home inspection" />
Structure
Inspectors will look over the home's structural components such as the framing and foundation of the home to ensure it can stand up to weather and the earth surrounding it as it is expected to. They are looking for signs of foundation movement, weakness, an indication of moisture, cracks, and any structural concerns. They will typically check for the following:
Foundation walls
Foundation floor
Condition of the basement
Underfloor crawl space
Columns and beams
Floor structure
Wall structure
Ceiling and roof structure
Ventilation/Insulation
The inspector will check for adequate insulation and ventilation throughout the home, including the attic and any unfinished spaces. They will look for improper ventilation which can allow excess moisture which may lead to mold and water damage. They will typically review the following:
Insulation in unfinished spaces
Attic ventilation
Vent piping through the attic
Crawlspaces
Foundation areas
Exhaust systems
Roofing
The inspector will look over the roof's covering (shingles, etc), as well as the gutters and downspouts, vents, flashings, any penetrations, and the chimney and skylights, if applicable. They will be looking for problems such as missing, curling, or buckled shingles, nail pops, or any signs of water pooling or potential entry points of moisture into the home through the roof. They will typically review the following:
Roof covering (shingles, etc)
Flashings
Roof penetrations
Chimney(s), if applicable
Roof drainage system
Skylight(s), if applicable
Plumbing
The inspector will closely examine the home's plumbing, water supply, drainage systems, and water heating equipment as well as any drainage or sump pumps. Since water penetration in a home can cause significant damage, it is important the plumbing and water systems are in good working order without leaks. Things like poor water pressure, rust spots, or obvious corrosion can be signs of larger problems. The inspector will typically review the following:
Service piping into the house
Main water shut-off
Supply branch piping
Exterior hose bibs/spigots
Water flow & pressure
Faucets
Sinks
Traps & drains
Waste system
Drainage, wastewater & vent piping
Water heater(s) including vent piping
Fuel supply & distribution
Pump(s)
Electrical
The inspector will take a look at the electrical systems in the home including breakers and fuses, service panels, disconnects, wiring, and other electrical components. They should inform you of the condition of these items and check for any potential problems with any electrical components, which can pose significant safety concerns. They will typically review the following:
Service drop (where the electric company connects to your home)
Service entrance wires
Electrical service rating
Main service panel(s)
Main disconnect
Overcurrent protection
Distribution wiring
Lighting, fixtures, switches & outlets
GFCI - ground fault circuit interrupter
AFCI - arc fault circuit interrupter
Smoke/heat detectors
Heating & Air Conditioning
The inspector will review the home's heating and air conditioning components, taking note of their age and condition, and should be able to give you an idea of their life expectancy. They will typically review the following:
Thermostat(s)
Heating system
Energy source
Safety switch
Combustion air
Venting, flue(s), & chimney(s)
Cooling system
Fuse/circuit breaker protection
Condensate drain
Heating & cooling distribution
Filter
Gas fireplace(s)
Interior Components
The inspector will take a close look at the inside of the home to understand the condition of all of the interior components that are not covered by other categories and will share any potential concerns. It is important to note that the inspection does not include testing for radon, mold, or other hazardous materials unless specifically requested. They will typically review the following:
Doorbell
Walls & ceilings
Floor surfaces
Windows
Interior doors
Closets
Stairways & railings
Ceiling fans
Cabinets & vanities
Countertops
Exterior Components
Like the interior components, the inspector will also look at the exterior components of the home. They will typically review the following:
Driveway
Walkways
Stoop & steps
Porch, patio, & flatwork
Exterior doors
Exteriors cladding (siding, etc)
Eaves, soffits, fascia & trim
Window/door frames & trim
Exterior caulking
Deck and/or balcony
Railings
Fence condition
Grading & surface draining
Vegetation affecting structure
Retaining walls
Fireplace
If the home has a fireplace, malfunctioning or damaged components can be a huge safety risk. The inspector will look over the components of the fireplace for any potential issues. They will typically review the following:
Visible portions of the fireplace & chimney
Lintels (beams across the top)
Damper doors
Cleanout doors & frames
Appliances
The inspector will often look for proper functioning of the home’s built-in and freestanding appliances. However, keep in mind that whether or not certain appliances come with the home will be outlined in your sales contract and varies with each home sale and not all of these items may remain in the home when you move in. They will typically review the following:
Dishwasher
Garbage Disposal
Ranges, ovens, cooktops
Microwave
Refrigerator
Washer & dryer
Dryer vent
Reviewing the Inspection Report
It is important to understand when buying on the resale market that no home is going to be perfect. Just because an inspector identifies problems does not necessarily mean you shouldn’t buy the house. It is just a way to understand the overall condition and be aware of anything that may need attention. Your real estate agent will help you review the inspection report and decide if you should take any actions based on the findings.
Looking to purchase a home in the St. Louis area?
The Chad Wilson Group is a team of real estate professionals helping home buyers like you in the <a href="https://www.thechadwilsongroup.com/communities/" title="Homes for sale St. Louis" target="_blank">Greater St. Louis Area</a> (<a href="http://thechadwilsongroup.com/st-charles-county/" title="Homes for sale St. Charles County" target="_blank">St. Charles</a>, <a href="https://www.thechadwilsongroup.com/st-louis-county/" title="Homes for sale St. Louis County" target="_blank">St. Louis</a>, <a href="https://www.thechadwilsongroup.com/warren-county/" title="Homes for sale Warren County" target="_blank">Warren</a>, and <a href="https://www.thechadwilsongroup.com/lincoln-county/" title="Homes for sale Lincoln County" target="_blank">Lincoln</a> Counties). Whether you are a first-time or an experienced homebuyer, we will work on your behalf as experts in your corner throughout the entire process to help make everything easier and more manageable. We work closely with many reputable inspectors and can vett and recommend a trusted company to you for your home inspection, so you can be assured that you are getting a thorough and complete inspection. <a href="https://www.thechadwilsongroup.com/contact/" title="Contact The Chad Wilson Group" target="_blank">Contact us</a> or fill out the form below with any questions you may have or to get the process started!
2022-03-07T16:38:00-07:002023-04-27T12:49:38-07:00Beth Carrtag:thechadwilsongroup.com,2012-09-20:18501Change of Address Checklist [INFOGRAPHIC]There can be a lot to remember during a move to a new home. People often think about completing a change of address form with the post office, but this is only the tip of the iceberg. There are many other places you will need to update your address to cover all of your bases. It can be hard to remember it all, but we’ve made the process easier with this handy moving checklist. So save yourself the stress of missing mail and service disruptions, and get ready to enjoy your new home knowing that you have it all taken care of.
<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Infographics/Change_of_Address_Checklist_Infographic_1.png" width="880" height="3284" alt="Change of Address Checklist Infographic" title="Change of Address Checklist Infographic" />
Post Office
Complete a change of address form with the USPS <a href="https://moversguide.usps.com/mgo/disclaimer?referral=UMOVE">online</a> or at a local post office
Financial Institutions
Bank/Credit Union
Loan Issuers (Car, Personal, Business, etc)
Credit Card Companies
Student Loans
Investment Accounts
Retirement Accounts
Government Agencies
Motor Vehicle Registration
Driver’s License
Personal Property Records (if applicable)
Voter Registration
Social Security Administration
Department of Veteran Affairs (if applicable)
Citizenship and Immigration Services (if applicable)
Utilities
Electric
Gas
Water & Sewer
Trash/Yard Waste/Recycling
Internet
Cell Phone Service
Your Employer
Your current employer
Any recent employer you expect to receive tax forms from this year
Insurance Agencies
Homeowner’s/Renter’s Insurance (you will need a new policy for your new home)
Auto Insurance
Life Insurance
Health Insurance
Service Providers
Physicians
Dentist
Veterinarian (if applicable)
Lawyer
Lawn Service
Babysitter
Cleaning Services
Memberships
Retail Clubs (Sam’s, Costco, etc)
Church or similar
Scouts & Youth Organizations
Gym or Athletic Club
Professional Associations
Subscriptions
Streaming services (Netflix, Hulu, Disney +, etc)
Newspapers & magazines
Subscription boxes
Online Retailers
Amazon
eBay
Other frequently visited online shopping websites
Looking to buy a home in the St. Louis area?
Moving can be a stressful time, but in the end, it is well worth it. Using this checklist is just one way to make that process more simple for you. Our team of <a href="https://www.thechadwilsongroup.com/about/" title="About The Chad Wilson Group" target="_blank">St. Louis area real estate experts</a> would love the opportunity to help you find your perfect home. We will guide you through every step of the process to help make sure nothing is missed. Working with our team means that you can minimize the stress of buying and selling a home and enjoy more of the excitement! If you have any questions or would like to get started on your home search, <a href="https://www.thechadwilsongroup.com/contact/" title="Contact The Chad Wilson Group" target="_blank">contact us</a>, or fill out the form below!2022-03-02T11:00:00-07:002022-11-22T15:34:08-07:00Beth Carrtag:thechadwilsongroup.com,2012-09-20:18151Questions to Ask Before Choosing a Mortgage Lender<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/Questions_to_Ask_Before_Choosing_a_Mortgage_Lender_Header.png" width="750" height="275" alt="Questions to Ask a Mortgage Lender" title="Questions to Ask a Mortgage Lender" />
When purchasing a home, the lender you work with can often make or break your home buying experience. There is so much to consider, especially if you are a <a href="https://www.thechadwilsongroup.com/buyers/first-time-buyers/" title="First-Time Homebuyers" target="_blank">first-time homebuyer</a>. From the types of loans available to interest rates to closing costs - many buyers find it difficult to keep everything straight. That is why it is important to ask the right questions before choosing which lender you will ultimately use for your new mortgage. You want to ensure you are choosing a lender with loan options that will be best for you and your situation.
So, what should you look out for? What questions should you ask potential lenders? How do you know who you should work with when choosing a mortgage company? The terms of a loan, rates, and products can vary greatly from one lender to the next. Here are some questions you should ask when shopping around to ensure you know exactly what each lender can do for you. This will help you make a wise and informed choice.
What type of loan is best for me?
What is the interest rate and what is the annual percentage rate?
Can I lock my rate? If so, at what point in the process can I do so?
How much down payment is required for MY unique situation?
What are discount points?
What are the origination fees?
What is the TOTAL cost/lender fees if I am going to go with you as my lender?
Are your rates, terms, fees, and closing costs negotiable?
Do you offer any discounts for things like inspections, homeownership classes, or automatic bill pay?
Do you offer discounts for my occupation (teacher, first-responder, etc) or any military or veteran discounts? (if applicable)
Do you offer any special programs for first-time homebuyers? (if applicable)
What bill pay options do you offer?
Is there going to be a prepayment penalty if I can pay off my mortgage early?
Does my loan get approved “in-house”? Does your company handle its own underwriting or is this outsourced?
What percentage of your closings happen on time?
Important tips when choosing your lender:
Tip #1: You want to work with someone local and experienced. Every market is unique and a lack of experience in your specific market is often detrimental to your mortgage process, which many buyers do not realize. While it can be tempting to work with what we call “big box” lenders that you hear about on the radio or in television ads, you need to ensure they have experience in your market and will be able to take care of your specific needs with the utmost care and attention. Out-of-town lenders may do a great job with advertising and getting your attention on the T.V. or radio, but that doesn’t mean they are going to be able to deliver for you when processing your mortgage. A majority of the time they have an office phone number with an extension that gets turned off on during nights and weekends, and they can’t communicate effectively with you, or even their loan team when you need them the most. They are often too busy or too big to provide the personal attention to detail that is needed to meet the important deadlines with the lending process.
Tip #2: Work with a local mortgage loan originator. A local mortgage company will not only know your market well, but they will also often be able to connect with you in a way that ensures the loan they are offering fits your unique situation and needs. Oftentimes we find that big banks only want a specific type of client and if you don’t have that exact credit score or that specific down payment requirement they won’t be the right fit for you.
Tip #3: Get a second opinion. There is no harm in shopping around and comparing lenders to ensure you are getting the best rate and terms possible for you. Everyone is different and you want to be certain that you are going with the best program for your specific needs. Ask all of the lenders you are considering the questions above so you can be sure you have a full understanding of what each one can offer you.
In Conclusion
When deciding on your mortgage lender, asking the right questions ahead of time can help make the home buying process so much easier on you. We always recommend to our buyers that they shop local lenders, as they will be more familiar with the market you are looking to buy in. The right lender will be ready to answer your questions, will have plenty of programs to choose from, and will be willing to connect with you and lead you to the best loan programs suited for your unique needs. Most importantly, the right lender will be focused on building a long-term relationship with you and eager to make you a client for life, not just for the closing.
<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/Find_a_local_trusted_lender.png" width="2250" height="400" alt="Find a local trusted lender" title="Find a local trusted lender" />
Are you looking for a local, trusted lender? Our team has helped hundreds of people in the St. Louis area buy and sell homes, and therefore worked with many different lenders throughout the years. We can recommend local, trusted lenders with a track record of smooth, on-time closings for you to interview and consider in your search for a mortgage provider. Contact us today, or fill out the form below and we would be happy to answer any questions you may have!2022-02-15T10:12:00-07:002022-11-14T11:47:19-07:00Laura Peytontag:thechadwilsongroup.com,2012-09-20:17551Things You Shouldn’t Do After Applying for a Mortgage [Infographic]One of the first steps in the home buying process is to consult with a mortgage lender about your financing options. When you know what you can afford, you can focus your home search and make your move more quickly when you find the property you want. Getting <a href="https://www.thechadwilsongroup.com/buyers/mortgage-pre-approval/" title="Mortgage Pre-Approval" target="_blank">pre-approved</a> for a mortgage will tell you how much you will be able to finance and make your offer to purchase more attractive to sellers, who are assured you can qualify for the amount you are offering to purchase the property for.
A pre-approval, however, is not a guarantee that you will get the loan you are asking for. Final official mortgage approval comes later and must happen in order to close on a home. That means, there will likely be some time that passes between your pre-approval letter and your final mortgage approval. To avoid derailing your financing, there are some important things you need to avoid so that your financial situation does not change too drastically and affect your final approval. Here are some things you shouldn’t do after applying for a mortgage.
<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/Things_You_Shouldnt_Do_After_Applying_for_a_Mortgage.png" width="880" height="1755" alt="Things You Shouldn't Do After Applying for a Mortgage" title="Things You Shouldn't Do After Applying for a Mortgage" />
When it comes to buying a home, it is best not to make any major financial changes before you close on the property. If you are ever in doubt, consult your lender before taking any action. This will ensure that you can close on your new home smoothly and without added stress.
We recommend that you work with a local lender that has a proven track record, great communication, and consistently closes on time. Also, a good lender will offer a variety of loan packages, competitive interest rates/closing costs, in-house underwriting, and will assist you in finding the <a href="https://www.thechadwilsongroup.com/buyers/mortgage-calculator/">mortgage payment plan</a> that fits your budget.
If you have questions about obtaining a mortgage loan, or any real estate needs, our team is ready and eager to help! Fill out the form below and a team member will be in touch to discuss how we can meet your unique needs.2022-01-13T13:57:00-07:002022-01-14T08:39:28-07:00Beth Carrtag:thechadwilsongroup.com,2012-09-20:175458 Things You Should Know About the Appraisal Process<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/Appraisal_Process.png" width="750" height="275" alt="8 Things You Should Know About the Appraisal Process" title="8 Things You Should Know About the Appraisal Process" />
Once you are under contract to purchase a home, a critical step in the home-buying process is the home appraisal. A milestone of obtaining a mortgage is ordering an appraisal to have an appraiser make an opinion of value analyzing if the purchase price is in line with the property’s value.
It is important to understand the appraisal process and what the appraisal really means to you as the homebuyer. Here are 8 things you should know about the appraisal process.
1. What is an appraisal?
As mentioned above, the appraisal process begins after you have signed a contract to purchase a home. To put it simply, an appraisal is an assessment of a property’s value by an unbiased third party. Appraisals are completed by state-licensed or certified professional appraisers whose job is to give an opinion of how much a house is worth at the given moment. They do not represent either the buyer or the seller, and are typically chosen by your lender. Since your lender is loaning money to purchase the home, they need assurance that the risk they are taking is appropriate and that the home is worth at least as much as they are lending to you to purchase it.
2. What does the appraiser use to determine a home’s value?
Appraisers will use several pieces of information to give their best value to a home at the given time. Below are some of the things appraisers will take into consideration to determine its value:
Age
Location
Size, style, and number of bedrooms and bathrooms
Condition
Updates, additions, or renovations
The current real estate market
Recent sales of comparable properties (frequently called “comps”)
<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/What%20determines%20appraised%20value.png" width="2250" height="400" alt="What determines appraised value" title="What determines appraised value" />
3. As a buyer, how can I prepare for the appraisal process?
The most important step you can take to prepare for an appraisal is to include an appraisal contingency in the contract offer so if the home you are purchasing does not appraise for the contract offered amount, you are financially protected and you can withdraw your offer on the home.
Another way you can prepare comes before putting an offer on a home. Research the area in which you are interested in purchasing and have your REALTOR® pull home values and comparisons of recent sales so that you can go into the purchase process educated about the price point for the area in which you are shopping. Doing this research can help eliminate difficulties with the appraisal, as the area and the home value should coincide with the offer you make.
4. How much does an appraisal cost?
Typically, an appraisal can cost between $350-$500 and is paid at closing. This can vary from one lender to another. This is a question that you should ask lenders when you are considering which lender to use.
5. What is an appraisal used for?
The appraised value of a home drives many important parts of the loan underwriting process. When a buyer finances more than 80% of the home’s total value, they will often be required to purchase private mortgage insurance (PMI). This means that a home’s appraised value will not only partly determine how much a lender will offer, it will also determine the terms of the loan.
Outside of purchasing a home, appraisals are used in other ways related to the home, such as determining insurance value, replacement value, and the assessed value for property taxes.
6. What happens if the appraisal value comes in lower than the contract amount and I still want the home?
If the appraised value is lower than the contracted purchase price, your REALTOR® will step in and try to renegotiate the selling price of the home with the listing agent and the sellers on your behalf.
In a sellers’ market, where there are more buyers looking for homes than homes available for sale, it is not uncommon for buyers to make offers that are above the listed price. If you are in this situation, make sure you understand that there is a possibility that the house will not appraise at a high enough value to cover your entire purchase price. It may be necessary to come to the closing table with additional down payment to cover the shortfall between the home’s appraised value and the contracted purchase price, if you still choose to purchase the home.
7. What happens if the appraisal comes in higher than the contract amount?
If the appraised value is higher than the contracted purchase price, you have instant equity. That means that the home you are purchasing is worth more than the offered amount, and that is always great news from an investment point of view.
When this happens, buyers can become concerned that a seller will want to renegotiate the contract to the higher appraised price. However, that cannot happen for several reasons. You are already under contract at this point for an agreed-upon purchase price, and the appraisal report is considered confidential, so it will not be shared with the seller or their listing agent.
<a href="https://www.thechadwilsongroup.com/blog/category/market-conditions/" title="Greater St. Louis Market Conditions" target="_blank"><img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/Greater%20St.%20Louis%20Market%20Conditions.png" width="2250" height="400" alt="Greater St. Louis Market Conditions" title="Greater St. Louis Market Conditions" /></a>
8. Can a home’s appraised amount change?
The appraised value is a professional's opinion, based on data, of the value of a home at a point in time, but it is not an exact science. You should keep in mind that appraisals can differ depending on when they are completed and even who is completing them. Due to the nature of the real estate market, a home’s value will change over time. If you choose to refinance or take any loans out against your home, your lender will likely order a new appraisal to determine your home’s current value.
In Conclusion
The appraisal step can often be a nerve-wracking time frame and one of the biggest hurdles of the home buying process. In order to lessen some of the stress and unknown for yourself, it is imperative to keep in mind that all states require appraisers to be licensed or certified in order to provide an appraisal to a lender. An appraiser is a third-party participant in a real estate transaction and an appraiser's main goal is to assure the mortgage company that the amount they are lending you as the buyer does not exceed a home’s true value. With that assurance, they are also providing you the peace of mind and protection that you are not purchasing a home for more than the property is worth.
Looking to purchase a home in the St. Louis area?
The Chad Wilson Group is a team of real estate professionals helping home buyers like you in the <a href="https://www.thechadwilsongroup.com/communities/" style="font-size: 17px;" title="Homes for sale in Greater St. Louis" target="_blank">Greater St. Louis Area</a> (<a href="http://thechadwilsongroup.com/st-charles-county/" style="font-size: 17px;" title="Homes for Sale in St. Charles County" target="_blank">St. Charles</a>, <a href="https://www.thechadwilsongroup.com/st-louis-county/" style="font-size: 17px;" title="Homes for Sale in St. Louis County" target="_blank">St. Louis</a>, <a href="https://www.thechadwilsongroup.com/warren-county/" style="font-size: 17px;" title="Homes for Sale in Warren County" target="_blank">Warren</a>, and <a href="https://www.thechadwilsongroup.com/lincoln-county/" style="font-size: 17px;" title="Homes for Sale in Lincoln County" target="_blank">Lincoln</a> Counties). Whether you are a first-time or an experienced homebuyer, we will work on your behalf as experts in your corner throughout the entire process to help make everything easier and more manageable. We work closely with many reputable lenders and can vet and recommend a trusted company to you, so you can be assured that the appraisal process is completed thoroughly and smoothly. <a href="https://www.thechadwilsongroup.com/contact/" style="font-size: 17px;" title="Contact The Chad Wilson Group" target="_blank">Contact us</a> or fill out the form below with any questions you may have or to get the process started!2022-01-10T12:25:00-07:002023-04-27T12:51:59-07:00Laura Peytontag:thechadwilsongroup.com,2012-09-20:17328Moving to a New Home: The Ultimate Moving Checklist [Infographic] Moving to a new home is an exciting thing, but there can also be a lot to remember, especially for <a href="https://www.thechadwilsongroup.com/buyers/first-time-buyers/" title="First Time Homebuyers" target="_blank">first-time homebuyers</a> who may not have been through the process before. To help you feel more prepared and guide you through the moving process, we put together the ultimate moving checklist, seen below. You can use this checklist to help you keep track of things that need to be done for the moving process from the time you decide to list your home or end your lease, through moving day!
Are you planning to <a href="https://www.thechadwilsongroup.com/sellers/" title="Listing Your St. Louis Home" target="_blank">list your home</a> for sale? You can find our checklist detailing all of the things you will need to do to prepare your home for sale <a href="https://www.thechadwilsongroup.com/blog/-how-to-prepare-your-home-for-sale/" title="Preparing Your Home for Sale" target="_blank">here</a>.
<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Infographics/Moving_Checklist_Infographic.png" width="1000" height="5368" alt="Moving Checklist Infographic" title="Moving Checklist Infographic" />
Click <a href="https://documentcloud.adobe.com/link/track?uri=urn:aaid:scds:US:0f5b039c-fdb8-4689-9143-b7eac098e8ff" title="Printable Moving Checklist" target="_blank">here</a> for a free, printable version of this checklist to keep in your moving binder.
Moving can be a stressful time, but in the end, it is well worth it. Using this checklist is just one way to make that process more simple for you. Our team of <a href="https://www.thechadwilsongroup.com/about/" title="Meet our team" target="_blank">St. Louis area real estate experts</a> would love the opportunity to help you find your perfect home. We will guide you through every step of the process to help make sure nothing is missed. Working with our team means that you can minimize the stress of buying and selling a home and enjoy more of the excitement! If you have any questions or would like to get started on your home search, <a href="https://www.thechadwilsongroup.com/contact/" title="Contact The Chad Wilson Group" target="_blank">contact us</a>, or fill out the form below!2021-12-28T12:04:00-07:002023-09-11T06:13:17-07:00Beth Carrtag:thechadwilsongroup.com,2012-09-20:16687Questions to Ask Your Home Inspector in the St. Louis Area<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/Questions%20to%20Ask%20a%20Home%20Inspector.png" width="750" height="275" alt="Questions to ask a home inspector" title="Questions to ask a home inspector" />
Buying a home is one of the most important investments you will make in your lifetime and is also one of the most exciting times for you as a buyer, especially if you are a <a href="https://www.thechadwilsongroup.com/buyers/first-time-buyers/" title="First-Time Home Buyers" target="_blank">first-time homebuyer</a>! When your offer is accepted and the ball gets rolling, one of the first and most important steps is scheduling a building inspection with a reputable and experienced home inspector.
Having a home inspection not only protects you but also empowers you with a plethora of knowledge of efficiencies and sometimes deficiencies in a home you are considering for purchase. In order to gain this knowledge, you must be armed with the right questions to ask your licensed inspector.
When speaking to Chris Orf at <a href="https://www.orfhomeinspections.com/" title="Orf Home Inspections Website" target="_blank">Orf Home Inspections</a>, a reputable inspection company in the St. Louis area, he shared with us some of the questions home buyers should ask when choosing a home inspection company. Here are some of the things you should ask inspection companies before booking your inspection to help you choose the right one for you!
1. Do you guarantee your work and do you offer any warranty on certain inspections you perform?
2. What type of inspections do you offer? Meaning, can I get all the services I need from your company to eliminate having to use several different companies for one inspection?
3. How much do you charge for a home inspection?
4. How long have you been in business and do you have references you can offer?
5. How long will the inspection take?
6. Do you offer the ability to pay for my home inspection at closing or do you require payment day of service?
Note that the majority of ALL inspection companies will not release the report without payment on the day of service.
7. When will I receive my inspection report and what will our relationship look like after the inspection?
8. Will you be available to discuss any concerns or answer any questions I may have when negotiating the inspection notice?
It is typical for home buyers, and in many cases, their Buyer Specialist, to attend the inspection itself. When at the building inspection appointment of your new home it is very important to not distract the inspector, as they have to be focused on the features that need to be inspected. Therefore, be sure to consolidate all your questions for the inspector prior to the appointment. This will eliminate any distractions and the potential for the inspector to miss something important. Going into the inspection appointment with a clear understanding of what an inspector can and cannot do will ensure you walk away with a comfortable feeling.
Do note these important points while at your appointment:
Inspectors inspect from the roof to the foundation and all the guts in between.
Inspectors can ONLY inspect what they can see. They cannot cut into a drywalled basement to look for any structural defects or repaired areas of the foundation.
Home inspectors WILL go slowly through the entire home, checking everything on their list to look for defects or deficiencies. The inspector will point out things to you that look good or may need repair or further insight from the seller. When this back and forth is happening with the inspector, be sure to ask all questions that come to mind about the items they are going over with you. This is also the ideal time to find out where important items are located such as the water shut off, main power switches, location of GFCI controlling garage, and exterior outlets.
Feeling nervous during this process is normal; buying a home is an investment and probably the biggest purchase a person makes in their lifetime. It is important to not panic if the inspection shows a problem that needs addressing. That is what the inspection is for and a buyer should walk away with a list in their mind of what is of utmost importance for the seller to fix and what can be taken care of by the buyer after closing.
A building inspection appointment should be an informational meeting with a professional inspector and yourself. It’s important to remember that during this appointment you are also provided access to the home for a few hours which gives you ample time to take measurements, take pictures, and offers a distinct idea of how moving in will look and what changes you may want to make once closing occurs. This appointment is more often than not, the last time at the home prior to the walkthrough, so be sure to go into the appointment with the mindset of information gathering. House to house, depending on age and care, many have similar issues and A+ ratings are hard to achieve. Using the right home inspector is the first important step in order to garner all the information one needs when moving forward after the home inspection is complete.
Looking to purchase a home in the St. Louis area?
The Chad Wilson Group is a team of real estate professionals helping home buyers like you in the <a href="https://www.thechadwilsongroup.com/communities/" title="Homes for sale in the St. Louis area" target="_blank">Greater St. Louis Area</a> (<a href="http://thechadwilsongroup.com/st-charles-county/" title="Homes for sale St. Charles County" target="_blank">St. Charles</a>, <a href="https://www.thechadwilsongroup.com/st-louis-county/" title="Homes for sale St. Louis County" target="_blank">St. Louis</a>, <a href="https://www.thechadwilsongroup.com/warren-county/" title="Homes for sale Warren County" target="_blank">Warren</a>, and <a href="https://www.thechadwilsongroup.com/lincoln-county/" title="Homes for sale Lincoln County" target="_blank">Lincoln</a> Counties). Whether you are a first-time or an experienced homebuyer, we will work on your behalf as experts in your corner throughout the entire process to help make everything easier and more manageable. We work closely with many reputable inspectors and can vett and recommend a trusted company to you for your home inspection, so you can be assured that you are getting a thorough and complete inspection. <a href="https://www.thechadwilsongroup.com/contact/" title="Contact The Chad Wilson Group" target="_blank">Contact us</a> or fill out the form below with any questions you may have or to get the process started!2021-11-23T10:32:00-07:002022-11-28T11:54:18-07:00Laura Peytontag:thechadwilsongroup.com,2012-09-20:163668 Myths About Using a VA Loan to Buy Your Next Home<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/VA_Loan_Myths_Header.png" width="750" height="275" alt="VA Loan Myths and the Truth" title="VA Loan Myths and the Truth" />
If you are a veteran or active service member, you may have heard about VA Home Loans. There are many myths swirling about this government benefit for many veterans and service members that may cause people to shy away from these loans. Maybe you have heard that it's difficult to qualify, or that the appraisal process makes things harder. Fortunately, most of these myths and misconceptions are either exaggerations or simply aren’t true.
This benefit originally began with what many know as the G.I. Bill in 1944 and has changed over time, becoming more and more beneficial to those who qualify. The VA Home Loan program remains one of the most tangible and recognizable benefits that veterans, service members, and their families receive for their service, and remains a great way to save a ton of money on your home purchase if you qualify.
Let’s take a deeper dive to help you understand the myths surrounding these benefits, and what the truths about the VA Home Loan really are.
MYTH #1 - You Can Only Use Your Benefits One Time
This is not true. If you have earned the VA home loan benefit, you have earned it for life, and it is not a one-and-done entitlement. You can use this benefit as many times as you want under the right circumstances. While there is an entitlement limit for each individual, it is entirely possible to purchase a home multiple times using your VA Home Loan benefits.
MYTH #2 - Your Benefit Expires
Also not true. Once you become eligible for a VA Home Loan, your benefit does not expire, whether you use it or not. Often people who served a long time ago (20, 30+ years, etc) wonder if they can still obtain a VA Home Loan. The answer is, absolutely yes! Your eligibility is based on how long you served, and the period you served. To confirm your eligibility, a member of our team can get you connected with one of our trusted lenders, who can help you obtain your Certificate of Eligibility.
MYTH #3 - You Can’t Have More Than One Active VA Home Loan at a Time
This is false. While there are some stipulations to this and things that must be taken into consideration, you CAN hold multiple active VA Home Loans at one time, given that you have not exceeded your personal entitlement amount.
What you must keep in mind is that VA Home Loans must be used to purchase your primary residence, and do come with certain occupancy requirements. In many cases, if you used a VA Home Loan to purchase a home in which you have met occupancy requirements, you can choose to rent that home out and use your remaining entitlement to purchase a new primary residence using a VA Home Loan.
MYTH #4 - There is a Limit to How Much Can be Financed
While there used to be a limit on the amount of money that can be financed under a VA Home Loan, this is no longer the case. In 2020, loan limits were removed, and eligible veterans and service members are not restricted to a cap when it comes to financing from the VA. What you need to keep in mind is your entitlement amount and the amount you can actually qualify for from the lender based on your income. These factors can affect the amount you can borrow. A trusted lender who is experienced with VA Home Loans can help you determine how much you can borrow based on your individual situation.
<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/VA_Loan_Quote_Chad_Wilson.png" width="750" height="200" alt="VA Loan Quote From Chad Wilson" title="VA Loan Quote From Chad Wilson" />
MYTH #5 - Combat Veterans are the Only Ones Eligible
While this misconception is floating around out there, it is not true. Active service members, members of the Reserves or National Guard, and surviving spouses of veterans who died on active duty or from a service-connected disability and are not remarried all may qualify for VA Home Loan benefits provided they have met the service requirements.
MYTH #6 - You Need Perfect Credit to be Approved
This is luckily not the case. The VA Home Loan has some of the most flexible credit and income guidelines of any loan out there, which means it can be even easier to qualify. Many lenders can get you approved (if you meet eligibility criteria for obtaining a VA Home Loan) with a credit score of 580+. VA Home Loans also have the flexibility to allow some of the highest debt-to-income ratios of any loan. This means veterans or service members who do not qualify for a conventional mortgage may still be able to qualify for a VA Home Loan.
MYTH #7 - There are unexpected out-of-pocket costs
The beauty of the VA Home Loan is that in almost all cases, there are very few out-of-pocket costs. While there may still be some small costs associated with obtaining the loan, they are often minimal and should be communicated clearly by your lender ahead of time so there are no surprises on closing day.
Additionally, as a Veteran-owned business with a soft spot for America’s service members, The Chad Wilson Group will waive our processing fee and cover termite inspection fees (often paid for by the seller) for those working with us who are financing their purchase using a VA Home Loan, saving clients even more money. We can also recommend local, trusted lenders who work with VA Home Loans regularly who offer their own discounts, and will communicate clearly with you on exactly what to expect when it comes to out-of-pocket costs.
MYTH #8 - Inspections and Appraisals are Tougher Than With Conventional or FHA Loans
The VA wants to ensure a property financed with a VA Home Loan is safe for veterans, service members, and their families to live, they do have certain property requirements. However, these items are things that a typical buyer would look for anyways. They include:
Access to a continuous water supply, sanitation, and sewage disposal
Adequate roofing
Absence of lead-based paint, dry rotting wood, fungus, and wood-destroying insects such as termites
Functioning electric and HVAC systems
Accessibility by street (can be public or private)
There are other requirements, but the basic idea is that the home must be hazard-free and generally safe to live in.
Once you have found a home, put in your offer, and filled out a full application for your VA Home Loan, the VA requires your lender to order an appraisal. This is where a third party will evaluate the home. This is very typical for the home-buying process regardless of how it is being purchased. The inspectors in these situations are typically the same inspectors who would perform the evaluation on any other home, but are required to be approved by the VA. These appraisers do evaluate homes based on a particular set of standards put out by the VA, but this does not necessarily mean they are harder on the appraisal. It is great protection for buyers!
While buyers using a VA Home Loan are not required to order a home inspection, it is very typical for all buyers to do so. The inspection looks at all aspects of the home and identifies any potential problems. This allows buyers to make a more informed decision on their purchase, and often, allows them to identify repairs that they wish to negotiate with the seller before officially making the purchase. Basically, an inspection lets you know exactly what you are getting into with a home, and is highly recommended for all home buyers, not just those using a VA Home Loan.
<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/VA_Loan_Benefits.png" width="750" height="275" alt="VA Loan Benefits" title="VA Loan Benefits" />
In Conclusion
The fact is VA Home Loans provide eligible veterans and service members with the opportunity to save thousands of dollars or more on their next home purchase. In order to maximize the benefits of a VA Home Loan, it is best to work with a trusted lender who has experience originating, processing, and closing VA Home Loans and a real estate agent who knows how to navigate the market for those using VA funding.
The Chad Wilson Group is not only veteran-owned, we work with buyers using these amazing benefits often. In fact, our team includes real estate agents who are designated Military Relocation Professionals (MRP). We understand VA financing, military benefits, BAH rates, VA loan limits, relocation requirements, and more!
Not only can we help you find the perfect home for you, but we can also recommend local, trusted lenders for your VA Home Loan, who will ensure you are getting the most from your hard-earned benefits. We will work closely with them to make the home buying process as easy and seamless as possible.
Interested in finding out more about your benefits? Contact us today or fill out the form below and we will reach out to find out how we can help you save money and get into your next home.
2021-11-11T07:36:00-07:002021-11-11T16:36:14-07:00Beth Carrtag:thechadwilsongroup.com,2012-09-20:1603410 Reasons You Need a Buyer’s Agent [INFOGRAPHIC]When <a href="https://www.thechadwilsongroup.com/property-search/search-form/" title="Search for homes" target="_blank">searching for a home</a> in the St. Louis area, having a professional and experienced real estate agent in your corner makes the process so much easier. There are so many ways a Buyer's Agent can be helpful in your home buying journey. Here are 10 reasons you need a Buyer's Agent for your next home purchase.
<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Infographics/10_Reasons_You_Need_a_Buyers_Agent_in_St_Louis.png" width="880" height="2711" alt="Why use a Buyers Agent" title="Why use a Buyers Agent" />
Thinking About Buying or Ready to Start Your Home Search?
The Chad Wilson Group makes the home-buying experience in the St. Louis area as easy as possible, with our expert team of real estate specialists. Not only will you have a hard-working, superstar Buyer Specialist in your corner, but you will also enjoy the added benefits of a dedicated Transaction Coordinator to help facilitate your contract-to-close period and keep things on track. Our systems and strategies have earned us one of the top spots in St. Louis area real estate. If you would like to hear more about how our team can assist you in finding your next home, <a href="https://www.thechadwilsongroup.com/contact/" title="Contact The Chad Wilson Group" target="_blank">contact us</a> or fill out the form below for a FREE, no-obligation buyer consultation with a member of our team. We look forward to showing you what our “Simply Exceptional Service” looks like!2021-10-21T09:37:00-07:002022-12-14T09:28:03-07:00Beth Carrtag:thechadwilsongroup.com,2012-09-20:155596 Questions to Help Identify Your Ideal Place to Live<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/Tips%20for%20Choosing%20Your%20Ideal%20Place%20to%20Live.png" width="750" height="275" alt="Tips for Choosing Your Ideal Place to Live" title="Tips for Choosing Your Ideal Place to Live" />
When you start to think about making a move, one of the first things you need to decide is what neighborhood or area you would prefer to live in. As you narrow down the areas in which you would like to search for a new home, it is a great idea to get to know the neighborhoods you are considering. After all, buying a home is a huge investment, and you want to be confident you are making the right choice on a location. The <a href="https://www.thechadwilsongroup.com/communities/" title="St. Louis Area Communities" target="_blank">St. Louis area</a> is full of amazing neighborhoods, and they all have their own unique appeal. It is important to evaluate your needs and desires when choosing a place to look for a home. Here are 6 questions to help identify your ideal place to live in the St. Louis area.
1. Is it close to the places I go most often?
When you are choosing a place to live, you need to take into consideration its proximity to the places you frequent. How far away is your job? What would your commute time be? How far away are your friends and family? What stores, restaurants, and recreational facilities do you go to most often, and how far away are those? What do you like to do for fun? Are there nearby <a href="https://www.thechadwilsongroup.com/blog/8-western-st-charles-county-parks-that-your-teens-will-love-to-explore/" title="St. Charles County Parks" target="_blank">parks</a> and <a href="https://www.thechadwilsongroup.com/blog/tag/community-news/" title="Things to do in St. Louis" target="_blank">recreational facilities</a>? Think about these answers and evaluate how easy or difficult it may be to get to these places you spend the most time so you aren’t stuck driving long distances to get to the places you need to be. Or perhaps, you want to put a little extra buffer between your home and family.
<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/Recreational_Oppotrunities.png" width="2250" height="400" alt="What recreational opportunities are nearby?" title="What recreational opportunities are nearby?" />
2. Is it safe?
It is a good idea to dig into the crime statistics of an area you are considering so you can determine its safety. Talk with the local police department, or search online. Usually, the county sheriff's website is a great place to start, for the latest statistics. Pay attention not only to the number of crimes but the nature of those crimes and whether it is trending upwards or downwards.
3. Is it economically stable?
The local economic development office can give you information about the household income and property values in the area. Are they rising or at least stable? How many homes are owner-occupied versus rentals? Are there buildings or homes that have sat empty or been on the market for long periods of time? This can give you a glimpse into the economic stability of an area.
4. Is it a good investment?
Working with a licensed and experienced <a href="https://www.thechadwilsongroup.com/about/" title="About The Chad Wilson Group" target="_blank">real estate agent</a> can help you determine the value of your investment in a home. One amazing benefit of owning a home is wealth building through the increase in home values over time. However, this is not a guarantee and depends on the area and the overall <a href="https://www.thechadwilsongroup.com/blog/category/market-conditions/" title="St. Louis Real Estate Market Conditions" target="_blank">real estate market</a>. A real estate agent can provide you with information on past appreciation and home values in the neighborhood. Although past performance is not a guarantee for future outcomes, it is a great indicator and can give you a sense of what to expect in the neighborhood.
5. What school districts do I prefer?
School performance is often a huge determinant of where someone wants to live. Spend some time researching not only the district as a whole but the specific schools in which your children will attend in any given neighborhood you are considering. Not only can you look online using websites such as <a href="https://www.greatschools.org/" title="Greatschools.org" target="_blank">greatschools.org</a> to find helpful data, but you can also visit the schools and ask for information on things like test scores, class sizes, and anything else that might be important to you. Even if you do not have children, the schools are an important consideration, because the quality of neighborhood schools often has a direct effect on resale values.
<a href="https://www.thechadwilsongroup.com/communities/" title="St. Louis Area Communities" target="_blank"><img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/BLOG_THIN_BANNER_IMAGES.png" width="2250" height="400" alt="EXPLORE ST. LOUIS COMMUNITIES" title="EXPLORE ST. LOUIS COMMUNITIES" style="font-size: 17px;" /></a>
6. Does it fit my lifestyle and preferences?
Before you buy a home, you should spend some time in the area to get a feel for the neighborhood. What neighborhoods or areas would you enjoy living in? Are there particular streets or subdivisions within these areas that you are drawn to? Simply driving through the neighborhood at varying times of the day will help give you an idea of what the neighborhood is like. Do you see a lot of kids out playing? Are people out walking or running? Is it quiet or busy? What is the traffic like throughout the neighborhood? Make observations about the area so you can decide if it fits what you are looking for.
When my husband and I started searching for our first home, we had a young daughter and knew that a kid-friendly neighborhood was very important to us. I remembered the good old days of running around with my neighbors playing kick the can until the sun went down, and desperately wanted that for our kids. Driving through our neighborhood in the summertime, we were thrilled to see the streets, sidewalks, and backyards filled with kids playing. This helped us know that we were moving into an area where lots of young kids lived and had a huge potential for our daughter making new friends.
On the flip side, we have four schools at either end of our neighborhood. What I did not do during our search was drive the area during school drop-off and pick-up times. The traffic and backups from the drop-off and pick-up lines and extra school traffic have been a source of frustration to me that I wish I had known to anticipate.
So, think about the area and what is around. Then, pick some different times to drive through or just sit and observe the area to help you get a good feeling for what it is like living there.
In Conclusion
It is important to really evaluate your desires and get to know an area before you buy a home so you can be confident in your decision. Our Buyer Specialists will sit down with you and help you narrow down your home search based on your own personal wants and needs. Inform your Buyer Specialist of any other consideration or preference so that they can help you find your ideal area. Our team has helped hundreds of people find their dream home; will you be next? If you have any questions or would like to request a free, no-obligation Buyer Strategy Session, contact us today or fill out the form below to get started.2021-09-24T11:13:00-07:002022-02-07T07:29:46-07:00Beth Carrtag:thechadwilsongroup.com,2012-09-20:1506810 Things to Consider When Viewing a Home [INFOGRAPHIC]As you begin to view <a href="https://www.thechadwilsongroup.com/buyers/" title="Buying a home with The Chad Wilson Group" target="_blank">homes for sale</a> in the St. Louis area, there are some important things you should look for at every home you visit. Keeping these things in mind will help you develop a sense of the home’s overall condition, and what you might expect to show up on the home inspection report, should you decide to <a href="https://www.thechadwilsongroup.com/buyers/making-an-offer/" title="Making an offer" target="_blank">make an offer</a>. If you think you are really interested in a home, you should spend a good amount of time walking around and evaluating some things about the home’s condition and location, to decide if it will be the best home for you. Let’s take a look at 10 things you should consider when viewing a home for sale.
<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Infographics/10_Things_to_Consider_When_Viewing_a_Home_Infographic.png" width="1000" height="2800" alt="10 Things to Consider When Viewing a Home for Sale" title="10 Things to Consider When Viewing a Home for Sale" />
Working with an experienced <a href="https://www.thechadwilsongroup.com/about/" title="About The Chad Wilson Group" target="_blank">real estate team</a> simplifies the home buying process. Your agent will accompany you to every home viewing, to help you evaluate the condition of the home, and ensure the home will fit your needs.
We are here to help!
Our team of real estate professionals have helped countless home buyers in St. Louis, St. Charles, Warren, and Lincoln Counties. If you have any questions or would like to get your home search started, we invite you to register for a free <a href="https://www.thechadwilsongroup.com/buyers/personalized-home-search/" title="Personalized home search" target="_blank">personalized home search</a> today or fill out the form below. We look forward to sharing our “<a href="https://www.thechadwilsongroup.com/about/testimonials/" title="The Chad Wilson Group Testimonials" target="_blank">simply exceptional service</a>” with you!2021-08-13T10:26:00-07:002022-02-07T07:30:18-07:00Beth Carrtag:thechadwilsongroup.com,2012-09-20:14035Should You Rent or Buy a Home in the St. Louis Area?<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Rent%20or%20buy%20blog%20header.png" width="750" height="275" alt="Renting vs Buying a Home in St. Louis" title="Renting vs Buying a Home in St. Louis" />
Should I rent, or continue renting my home, or is it finally time to buy? This question probably crosses the mind of everyone at some point in their lives. There are many things to consider when you ask yourself this question. Your lifestyle, financial situation, your relationship, your job, and your future goals will all determine the best course of action. Additionally, things like the current real estate market conditions and current interest rates will probably be a large factor.
<a href="https://www.attomdata.com/news/market-trends/home-sales-prices/attom-data-solutions-2021-rental-affordability-report/" title="ATTOM Data Solutions 2021 Rental Affordability Report" target="_blank">ATTOM Data Solutions</a> reports that it’s cheaper to own a home than rent one in 63% of markets, particularly areas of the South and Midwest, such as <a href="https://www.thechadwilsongroup.com/st-louis-county/" title="Homes for sale in St. Louis County, MO" target="_blank">St. Louis</a> and <a href="https://www.thechadwilsongroup.com/st-charles-county/" title="Homes for sale in St. Charles County, MO" target="_blank">St. Charles Counties</a>. The <a href="https://www.huduser.gov/portal/datasets/50per.html" title="HUD 50th Percentile Rent Estimates" target="_blank">U.S Department of Housing and Urban Development</a> reports the median rent price for a 3 bedroom home in the Greater St. Louis Area is currently around $1311 and the median sales price for homes in St. Charles County in <a href="https://www.thechadwilsongroup.com/blog/st-louis-real-estate-april-2021/" title="April 2021 St. Louis Market Report" target="_blank">April 2021 </a>was $277,000. At this price, a down payment of 5%, and interest rate of 3%, a homeowner would expect a monthly mortgage payment of around $1109.00 before taxes and insurance. This would be even less with a larger down payment.
Lower interest rates right now mean buyers can stretch their dollar further. It may be one of the best times to make the move from renting to home ownership, or for those looking for their first home, to decide to buy instead of rent to begin with.
Of course, you must think about the <a href="https://www.thechadwilsongroup.com/blog/renting-vs-buying/" title="Pros and Cons of Renting vs Buying a Home" target="_blank">pros and cons of renting and buying</a>, and evaluate what makes the most sense for you. If you are contemplating becoming a homeowner, here are some things to consider.
<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/Rent%20Will%20Continue%20to%20Rise.png" width="333" height="333" alt="Rent Will Continue to Rise" title="Rent Will Continue to Rise" style="float: right;" />
Rent Will Continue to Rise
According to a <a href="https://www.rentcafe.com/apartments-for-rent/us/mo/saint-louis/#rent-report" title="St. Louis Rent Report " target="_blank">RentCafe.com</a> recent report, the average rent in the St. Louis area is on the rise. Rent will continue to increase, and you really have no control over that. When your lease term expires, and time comes to re-sign a contract, typically every 1-3 years, you can almost guarantee the price will go up. If you purchase a home, as long as you obtain a fixed-rate mortgage, you will have the peace of mind knowing your mortgage will stay the same for the life of the loan (keep in mind taxes and insurance will likely fluctuate, but the mortgage payment will not change). A fixed-rate mortgage payment gives you stability and predictability in your monthly payments.
Building Wealth Through Equity
When you own a home, you are building wealth through equity. Equity is what your home is worth minus what you currently owe on your home. Every month when you pay your mortgage, you build more equity and therefore more wealth. As a renter, your monthly payments go to your landlord and do not build your own personal wealth in any way.
Making it Your Own
When you live somewhere, you probably want to make it your own. When you own a home, the flexibility to personalize and decorate your home is much greater. You are able to paint, landscape, and make upgrades (subject to guidelines from your HOA and the governing authorities). Since rental properties must be easily transferable to another, upgrades and personalization must usually go through the landlord, and will almost always be more restricted than when you own your home.
Flexibility to Move
Flexibility to move is one distinct advantage that renting has over home ownership. Renters have the flexibility to relocate when their lease is up and can often buy out of their lease to move sooner if they’d like. If you own a home and want to move, you will likely have to <a href="https://www.thechadwilsongroup.com/sellers/" title="Sell Your St. Louis Area Home" target="_blank">list and sell</a> it. Although <a href="https://www.thechadwilsongroup.com/blog/tag/market-report/" title="St. Louis Real Estate Market Conditions" target="_blank">current market conditions</a> have homes selling in an average of 5 days in St. Charles County, this will not always be the case. Selling your home can take time and effort, so you should consider your future plans when you decide if it’s time to buy.
Tax Advantages
Owning a home comes with tax deductions that renting does not. You may be able to deduct things like your mortgage interest, property taxes and homeowners insurance, reducing your tax bill and providing yet another financial advantage to home ownership. As a renter, these tax advantages are enjoyed instead by your landlord.
The Verdict
Renting and buying both have their own advantages and disadvantages. Much of it comes down to the stability of your living situation. If you are stable and happy in your career, and anticipate being in the same place for a while, home ownership probably makes sense. If things are up in the air and you are unsure what the future looks like, you may be better off renting until you find a place to put your roots. You should take time to evaluate all of the options with your current situation to decide what path to take. Your life situation is unique, and only you can decide if renting or buying is best for you in the stage of life that you are in right now.
<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/Evaluate%20Your%20Living%20Situation.png" width="750" height="200" alt="Evaluate Your Living Situation" title="Evaluate Your Living Situation" />
If you are considering becoming a homeowner, we would love to connect to discuss your options. We can help you evaluate your situation, and present you with your options in the St. Louis area. Purchasing a home can become overwhelming, but with our expert team in your corner, we can make sure it is a smooth and informed process. We have worked with many <a href="https://www.thechadwilsongroup.com/buyers/first-time-buyers/" title="First-time Homebuyers The Chad Wilson Group" target="_blank">first-time home buyers</a> to find the perfect living situation for them. If you’d like to chat, fill out the form below, and a member of our team will be in touch!2021-06-01T12:27:00-07:002021-06-02T09:31:49-07:00Beth Carrtag:thechadwilsongroup.com,2012-09-20:11502Renting vs Buying a Home: Which is Right for You?When the time comes to look for a place to live, you have many options. A big question that many have is whether they should rent or buy a home. This is a question that can only be answered by determining what makes the most sense for your personal situation. When you are making this decision, you should consider the pros and cons of renting versus buying, as outlined below.
<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Infographics/Renting_vs_buying_infographic.png" width="1000" height="1977" alt="Renting vs Buying a Home in St. Louis" title="Renting vs Buying a Home in St. Louis" />
If <a href="https://www.thechadwilsongroup.com/buyers/" title="Buying a home with The Chad Wilson Group" target="_blank">buying a home</a> seems like the best path for you, we are here to help! Most people choose to hire a real estate agent, so they do not have to navigate the home buying process alone. Our team of expert real estate consultants have helped hundreds of <a href="https://www.thechadwilsongroup.com/buyers/first-time-buyers/" title="First-Time Homebuyers" target="_blank">first-time homebuyers</a> in the St. Louis Area. We will be there for you from beginning to end, and beyond. <a href="https://www.thechadwilsongroup.com/contact/" title="Contact The Chad Wilson Group" target="_blank">Contact us</a> today so we can answer any questions you may have and help you start your <a href="https://www.thechadwilsongroup.com/property-search/search-form/" title="Home Search The Chad Wilson Group" target="_blank">home search</a>. 2021-05-10T12:14:00-07:002021-05-20T12:40:17-07:00Beth Carrtag:thechadwilsongroup.com,2012-09-20:11107Mortgage Loan Application Checklist [Infographic]Applying for a mortgage loan can be overwhelming, especially for first-time homebuyers. That doesn't mean preparing for the application process has to be such a difficult task. If you can start with all the necessary documentation, you are likely to avoid some of the headaches that may come along with the mortgage loan application process. If you want your approval process to be as smooth and swift as possible, here are some of the documents you should have handy when you decide to apply for a mortgage loan.
<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Infographics/Checklist%20of%20Mortgage%20Loan%20Documents.png" width="1000" height="3744" alt="Mortgage Loan Document Checklist" title="Mortgage Loan Document Checklist" />
Looking for a printable version of this checklist? Download it <a href="https://documentcloud.adobe.com/link/track?uri=urn:aaid:scds:US:7dd94427-7a13-4701-b180-af3af74ecf58" title="Printable Mortgage Loan Document Checklist" target="_blank">here</a>.
You must keep in mind that while this checklist covers most of the items you will need, there may be other items needed to process your loan that will be determined by your unique situation. It is essential that you <a href="https://www.thechadwilsongroup.com/buyers/mortgage-pre-approval/" title="Mortgage Pre-Approval" target="_blank">obtain loan pre-approval</a> to have a solid idea of what your purchasing power is, before you begin searching for, and touring homes.
We recommend that you work with a local lender that has a proven track record, great communication, and consistently closes on time. Also, a good lender will offer a variety of loan packages, competitive interest rates/closing costs, in-house underwriting, and will assist you in finding the <a href="https://www.thechadwilsongroup.com/buyers/mortgage-calculator/" title="Mortgage Calculator" target="_blank">mortgage payment plan</a> that fits your budget.
If you have questions about obtaining a mortgage loan, or any real estate needs, our team is ready and eager to help! Fill out the form below and a team member will be in touch to discuss how we can meet your unique needs.2021-04-07T16:16:00-07:002021-06-08T16:21:25-07:00Beth Carrtag:thechadwilsongroup.com,2012-09-20:6433How to Buy a Home Virtually<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Virtual_Home_Buying_Program_Blog_Image.jpg" width="750" height="410" alt="How to Buy a Home Virtually" title="How to Buy a Home Virtually" />
What is "buying a home virtually", and why does it matter?
Buying a home virtually means minimizing the face-to-face communications or interactions with your real estate buying team, lenders, sellers, sellers' agents, and contract-to-closing vendors, ideally allowing you to buy your home without physically encountering a person.
You don't need to put off your home-buying plans to be safe during the <a href="https://www.thechadwilsongroup.com/covid-19-information-and-resources/" title="Find COVID resources in the St. Louis area">COVID-19 crisis</a>. Our Virtual Home-Buying Program lays out a plan to limit face-to-face interactions to just <a href="https://www.thechadwilsongroup.com/covid-19-cdc-compliant-operating-guidelines/" title="Learn about our COVID 19 Operating Guidelines">essential business</a>, and in some cases, you may be able to experience the entire transaction virtually. We embrace tech tools to make the home-buying process easy and digital.
And here is the thing...virtual home buying is NOT new to our team. For years we have helped relocation buyers and military buyers purchase homes virtually. After purchasing a home recently, one of our past clients said this about their transaction:
"<a href="https://www.thechadwilsongroup.com/agents/erinshinn/" title="Learn about Buyer Specialist Erin Shinn">Erin</a> was amazing. We were out of town buyers, and honestly there is no way we could have done it without her help. From crazy marathon showings and video chat house tours to problem solving in crunch time when we hit a major snag! She was a joy to work with, and we are in an amazing house as a result."
Another recent transaction, using many of the features of our virtual home buying program, was an Oklahoma military couple considering relocation back to the St. Louis area. The husband was to be deployed to Korea, and they decided that it would be easiest on the family if they could be near extended family in the St. Louis area during his absence. Our Buyer Specialist <a href="https://www.thechadwilsongroup.com/agents/heidifuentes/" title="Learn about Buyer Specialist Heidi Fuentes">Heidi</a> conducted several FaceTime tours of homes to help them in their remote home search.
These are just two of many examples where our tech-enabled team was able to secure the trust of clients to help them purchase their home virtually or almost virtually.
How to buy your home virtually:
1. Virtual Consultation
When our team is interviewing for the job of helping you to buy your next home, we start with a buyer consultation that we call our "Discovery Appointment". The objective of this appointment is to learn more about you, what you are looking for in your next home, and why certain features are important to you, so that we can then make a game plan to get you what you want. Our experienced agents will walk you through the <a href="https://www.thechadwilsongroup.com/buyers/first-time-buyers/" title="First-time home buyers? Learn more here">home-buying process</a>, <a href="https://www.thechadwilsongroup.com/buyers/mortgage-pre-approval/" title="Get Preapproved for a Mortgage">discussing lending options</a>, explain the residential sale contract, explore possible contingencies to consider adding to a contract, and <a href="https://www.thechadwilsongroup.com/buyers/financial-terms-glossary/" title="Learn about financial terms related to home buying">much more</a>.
While typically these appointments have been done in person at our office, our Buyer Agents are now conducting these consultations virtually through video conferencing like Google Hangouts or Zoom.
2. Digital Alerts
Our new website is an amazing tool to help St. Louis Metro area buyers learn about communities in <a href="https://www.thechadwilsongroup.com/st-louis-county/" title="Learn about St. Louis County Communities">St. Louis</a>, <a href="https://www.thechadwilsongroup.com/st-charles-county/" title="Learn about St. Charles County Communities">St. Charles</a>, <a href="https://www.thechadwilsongroup.com/warren-county/" title="Learn about Warren County Communities">Warren</a> and <a href="https://www.thechadwilsongroup.com/lincoln-county/" title="Learn about Lincoln County Communities">Lincoln</a> Counties. Even better, it directly syndicates with our local MLS (the same resource that real estate agents use) to bring you a searchable, current database of homes for sale in our area. It updates every 20 minutes with the MLS to make sure that you don't miss out on a home in this competitive buying market. You can access saved searches and favorite listings, receive email updates when new listings are added or when there are pricing changes, and request more information on all your favorite listings. You can even request either virtual tours or in-person tours.
You can either <a href="https://www.thechadwilsongroup.com/property-search/search-form/" title="Search homes for sale">set up a search</a> on your own and save it to your account, or you can fill out a <a href="https://www.thechadwilsongroup.com/buyers/personalized-home-search/" title="Complete a quick form of your ideal next home">quick form</a> to have one of our agents create a search for you.
<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Video_Chat_Tour.png" width="226" height="339" alt="Schedule a Video Chat Tour" title="Schedule a Video Chat Tour" style="margin: 15px;" class="img_box_left" />
3. Virtual Tours
While unconventional, it isn't unheard of for buyers to purchase a home without even stepping in the door. Easily request video chat tours on any property search page on our website. Our Buyer Specialists will video chat with you while they tour the home, investigating every nook and cranny. Alternatively, our team is producing <a href="https://www.thechadwilsongroup.com/virtual-tour/" title="Enjoy virtual open house tours">Virtual Open House Tours</a> to help you determine if one of our listings is the right home for you.
If you choose to visit a home in person, we have implemented the following showing standards since the health and safety of our clients is of the utmost importance.
Buyers are to be pre-approved for the list price of the home and have a signed buyer-agency agreement.
Agents are to drive in separate vehicles from buyers.
Walk around the exterior of the home first to make sure it meets your needs before entering.
Social distancing of at least 6 feet will be practiced during the entire showing.
Hand sanitizer and/or sanitizing hand wipes that contain at least 60% alcohol are to be used by agents and their buyers prior to entering the home.
Minimize contact of items within the home by only touching the doorknobs to open and close exterior doors to enter and exit the home. The homeowner will have all lights turned on for the showing and will turn them off after showing.
Please do not sit on any furniture in the home and wear booties if provided.
If the buyer agent and/or buyer is feeling ill or thinks they may have been in contact with someone who is ill, or if the buyer agent and/or buyer has been near someone who has a laboratory-confirmed COVID-19 diagnosis or has a suspected COVID-19 diagnosis and is under quarantine by the County Health Department, we respectfully ask that you do not schedule an in-person showing. We will coordinate a virtual tour.
4. Electronic Signature
When you are ready to <a href="https://www.thechadwilsongroup.com/buyers/making-an-offer/" title="Learn how to make an offer on a home">make an offer</a> on a home, you can do it from the comfort of your home. If you haven't bought or sold a home in a while, you may be surprised to hear that as a tech-enabled team, we have been using electronic signatures since 2012. Electronic signature allows you to sign most documents to buy and sell a home electronically from the comfort of your home using a platform called Docusign. The online requirements are internet connectivity and an unique email address for each buyer of the home.
5. Earnest Money Delivery
Once you are under contract on a home, there are still several <a href="https://www.thechadwilsongroup.com/buyers/escrow-now-what/" title="Learn about the contract to close process">milestones</a> to get to the closing table. One of these is depositing the Earnest Money that was agreed upon in the residential sale contract. The Earnest Money Deposit is your “good faith” commitment and earnest intent to perform. If the sale is closed, the earnest money will be applied to the purchase price of the home. Conveniently, for the last couple of years, most local title companies have been offering online earnest money service.
6. Inspection
Most contracts to purchase a home involve an inspection contingency. In the past, we have often encouraged buyers to go to the home inspection to learn more about the home. And yet, the home inspector is incredibly busy conducting their very detailed home inspection; an inspector's actual face-to-face time with the buyer is minimal. Most home buyers use this time to measure rooms and plan their future decorating and furniture placement. Home inspectors typically meet with the buyer at the end of the inspection to lay out major findings and their recommendations and then provide a detailed report via email with detailed photos and descriptions. If you wished to not attend the home inspection, let us help direct you to ASHI-certified home inspectors that we know and trust who will provide you a detailed inspection report and conference with you after the home inspection.
7. Closing Day
Closing day is the day you sign the papers to transfer the title of the home to your name. In Missouri, you typically go to your Title Company to sign documents that are also notarized. During the current COVID-19 crisis, most local Title Companies are providing curbside signing. Although it is typically one of the most fulfilling days in the buying/selling cycle and our Buyer Agents LOVE attending the closings, we are instructing our agents to not attend closing for everyone's protection.
<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Virtual_Home_Buying_Program.jpg" width="1545" height="2000" alt="Virtual Home Buying Program" title="Virtual Home Buying Program" />
Conclusion
While these times are challenging, our team has a proven strategy of helping our clients buy homes using current technology and safety precautions. Most of our home buyers are also local home sellers. Learn more about our <a href="https://www.thechadwilsongroup.com/blog/how-to-sell-a-home-virtually/" title="Learn about our Virtual Home Selling Program" target="_blank">Virtual Home Selling Program</a>!
Our team is here for you providing Simply Exceptional Service. Let’s stay positive and flatten the curve as we work together as a community!
Ready to talk about buying your home virtually? <a href="https://www.thechadwilsongroup.com/buyers/" target="_blank" title="Schedule a buyer consultation with our team">Register</a> here to schedule a time to meet with one of our Buyer Specialists.
<img src="https://assets.site-static.com/userfiles/1688/image/Main/Simply-Exceptional-Service-Tag.png" width="400" height="56" alt="Simply Exceptional Service" title="Simply Exceptional Service" style="display: block; margin-left: auto; margin-right: auto;" />2020-04-24T11:56:00-07:002022-02-07T07:30:42-07:00Jennifer Smithtag:thechadwilsongroup.com,2012-09-20:6313Straight Talk for First-Time Home Buyers<br class="Apple-interchange-newline" /><img src="https://assets.site-static.com/userfiles/1688/image/Blog/First_Time_Home_Buyer.jpg" width="750" height="410" alt="First Time Homebuyers" title="First Time Homebuyers" class="img_box_left" />According to the National Association of Realtors®, in 2017, adults aged 36 and younger made up the largest group of home buyers, at 34%. Sixty-six percent of those were first-time home buyers and 92% of these younger buyers hired a Realtor® so they wouldn't have to make these big decisions alone.
One of the biggest hurdles first-time home buyers have to overcome is financing their purchase. While best practice is to have several months of savings as a cushion, young buyers often have a misconception of just how much is needed for a down payment.
One of the most popular financing programs for first-time home buyers is an FHA loan, which has less restrictive qualification requirements and often only requires 3.5% down. That can mean just a few thousand dollars for many home purchases. And, best of all, monthly mortgage payments in the greater St. Louis metro area are often significantly lower than the rent payments. To get more information on what type of mortgage you can comfortably afford, check out the <a href="https://www.thechadwilsongroup.com/buyers/mortgage-calculator/" target="_blank">mortgage calculator</a> on our website.
Since our team works with a lot of buyers every year, we also work with a lot of lenders. We have built relationships with great lenders that we trust. Let us introduce you to some of these amazing local lenders by filling out our <a href="https://www.thechadwilsongroup.com/buyers/mortgage-pre-approval/" target="_blank">Mortgage Pre-Approval form</a>. They will help you understand your purchasing power after weighing your income, your expenses, and your future plans. You may be delighted to find out how much you can save each year by buying rather than renting.
Dean and Emily are Chad Wilson Group past clients who bought their first home with us. They trusted us to help them find a home and walk them through the processes to purchase it. In this video, they talk about the timing of their decision to purchase and why they wish they had done it sooner. <br /><br />If you are thinking about <a href="https://www.thechadwilsongroup.com/buyers/" target="_blank">buying</a> your <a href="https://www.thechadwilsongroup.com/buyers/first-time-buyers/" target="_blank">first home</a>, contact The Chad Wilson Group so our experienced agents can help you find the best home for your lifestyle. Our trusted lender partners will provide sound financial advice so you make a wise investment. We are excited to help make your home ownership dreams come true, just like we did with Dean and Emily!
<img src="https://assets.site-static.com/userfiles/1688/image/Main/Simply-Exceptional-Service-Tag.png" width="400" height="56" alt="Simply Exceptional Service" title="Simply Exceptional Service" />2020-03-30T13:56:00-07:002020-11-11T08:10:51-07:00Jennifer Smithtag:thechadwilsongroup.com,2012-09-20:6473One Couple’s Solution to Beating the Bidding Wars<a href="https://www.thechadwilsongroup.com/buyers/"><img src="https://assets.site-static.com/userfiles/1688/image/Blog/Bidding_Wars.jpg" width="750" height="410" alt="St Charles Home" title="St Charles Home" />Buying a home</a> in a popular area on a limited budget can be very frustrating and challenging, especially in today's current real estate market where listing inventory remains low. Just ask Steve and Laura Young.
They had been <a href="https://www.thechadwilsongroup.com/st-charles/" target="_blank">searching for a home in St Charles, Missouri</a> to meet their needs and stay within their $200,000 budget for months. They had written a number of contracts, always ending in a bidding war, and lost out on all of them. To say they were discouraged is an understatement.
Steve and Laura are not <a href="https://www.thechadwilsongroup.com/buyers/first-time-buyers/" target="_blank">first-time home buyers</a>, but this is a common problem those buyers face. Steve and Laura had recently gotten married and sold their individual homes, so finding a home to blend their new life together was imperative. Their buyers’ agent, <a href="https://www.thechadwilsongroup.com/agents/kellymoore/" title="Meet Kelly Moore" target="_blank">Kelly Moore</a>, was doing everything she could to uncover options that might work for them.
<img src="https://assets.site-static.com/userfiles/1688/image/kellymoore/Kelly-01.jpg" width="150" height="225" alt="Meet Kelly Moore" title="Meet Kelly Moore" class="img_box_right" longdesc="Kelly Moore, Buyer's Agent for The Chad Wilson Group" />“After we had written 4 contracts and been outbid on all, we knew this home search journey might take us down a non-traditional path,” said Kelly. “Steve is a professional painter and Laura is very creative, so I knew they had the vision and skills to look at homes that needed some work. We thought this might be our way to find a home that would meet their needs and keep them within budget.”
Kelly continues, “I had solicited the help of everyone on my team to be on the lookout for a home that might be a good fit for the Youngs. My hope was that we might see something before it hit the market so they could be the first buyer to see a new listing.”
When The Chad Wilson Group was hired by the owners to <a href="https://www.thechadwilsongroup.com/sellers/" title="Learn about selling your home" target="_blank" style="text-align: right;">list the home</a> at 2405 Gallaher in <a href="https://www.thechadwilsongroup.com/st-charles/" style="text-align: right;">St Charles</a>, Kelly knew this one had possibilities. She arranged an early showing before the home hit the MLS, and even though the home did not check all of the boxes on Steve and Laura’s list of wants and needs, it came close enough that they made an offer, and this time it was accepted.
They closed on the home purchase in August of 2018, and over the past year, they have been very busy updating and renovating to make the home a perfect fit for their family. In this HGTV House Hunters, Property Brothers, Flip or Flop age, when many home owner wannabes dream of tackling a home renovation project while sitting on their couch watching 30-minute makeovers magically happen on TV, only a few have the stamina and patience to live in the midst of construction.
Curb Appeal
One of the first projects Steve and Laura tackled was the curb appeal of the home. The red brick was in good shape, but the house felt very dated. It was built in 1970, and still had that same look. <br class="Apple-interchange-newline" /><img src="https://assets.site-static.com/userfiles/1688/image/Blog/St_Charles_Home_2.jpg" width="300" height="225" alt="St. Charles Home" title="St. Charles Home" class="img_box_right" />“I had painted exterior brick many times before, and while it is time-consuming, it really makes a difference in the home’s appeal,” said Steve. “We used one coat of primer and two coats of a light grey paint. I am a brush-and-roll guy, kind of old fashioned but I believe it does a much better job of coating than spraying paint, so I rolled the brick and Laura used a brush to cover the grout and brick details. We also painted the shutters black and added a nice pop of yellow to the front door, and all together, it really brought the home to a more current look.”
More Open Living Room
<img src="https://assets.site-static.com/userfiles/1688/image/Blog/St_Charles_Home_5.jpg" width="300" height="200" alt="St Charles Kitchen Before" title="St Charles Kitchen Before" class="img_box_right" /><img src="https://assets.site-static.com/userfiles/1688/image/Blog/St_Charles_Home_3.jpg" width="300" height="200" alt="St Charles Living Room Before" title="St Charles Living Room Before" class="img_box_right" />Next, they opened up the floorplan by removing a wall between the living room and kitchen. There was just a narrow doorway between those rooms, and Steve and Laura wanted a sight line from the front door to the back of the home. After removing the wall, they painted everything a soft grey to unify the spaces, with a pop of fun color on one kitchen feature wall. The kitchen now has freshly painted walls in soft grey with a colorful feature wall and you can see the addition of the French door to the music room.
Their future plans include replacing the flooring in this open area.
<img src="https://assets.site-static.com/userfiles/1688/image/Blog/St_Charles_Home_4.jpg" width="300" height="225" alt="St Charles Living Room After" title="St Charles Living Room After" class="img_box_left" /> <img src="https://assets.site-static.com/userfiles/1688/image/Blog/St_Charles_Home_6.jpg" width="300" height="225" alt="St Charles Kitchen After" title="St Charles Kitchen After" class="img_box_left" />
<br /><br />Dedicated Space for Teaching
Their big project was finishing the back family room. The previous owners had not painted or installed flooring in this space. <img src="https://assets.site-static.com/userfiles/1688/image/Blog/St_Charles_Home_7.jpg" width="300" height="200" alt="St Charles Music Room Before" title="St Charles Music Room Before" class="img_box_left" />Laura is a music teacher and teaches private string lessons as well, so she needed a dedicated space with a separate entrance that wouldn’t disturb the rest of the house during teaching hours.
“Steve and I could see that this big room had the potential to make a wonderful studio with a little work,” said Laura. We added durable laminate floors and baseboards and then installed a French door to separate this space from the rest of the house. Then we painted everything and added a ceiling fan for climate control.”
Did we mention this couple is creative? They needed something to separate the practice space from the waiting space, but they didn’t want to make the practice space feel dark and closed in. Their solution…they bought leftover glass divider walls from an IHop restaurant renovation, turned them on their sides, connected them and added feet. This allowed light to filter through to both sides of the room while still providing some privacy. The total cost for this adorable project was less than $100.
<img src="https://assets.site-static.com/userfiles/1688/image/Blog/St_Charles_Home_9.jpg" width="300" height="225" alt="St Charles Music Room After" title="St Charles Music Room After" class="img_box_left" /><img src="https://assets.site-static.com/userfiles/1688/image/Blog/St_Charles_Home_10.jpg" width="300" height="225" alt="St Charles Music Room After 2" title="St Charles Music Room After 2" class="img_box_left" />
The music studio with its own entry from the back patio, has space for parents to wait and enjoy refreshments while their students practice on the other side of the lovely up-cycled screen. The music practice area has separation from the rest of the room thanks to the glass screen, but is still a bright and welcoming place to play.
So what’s left on their to-do list? “I want to replace the interior doors with panel doors and replace the Masonite siding with vinyl, in addition to replacing the flooring in the main living area,” said Steve.
Benefits of Out-of-the-Box Home Selection
Laura admits this move has taken some patience. “My plan was to buy something that was move-in ready, but we came to realize that was going to be extremely difficult on our budget, in our target area and within our limited timeframe. I was not in love with this home when we first saw it. I felt like I was compromising a lot in making this purchase,” she admits, “but after thinking it over, we realized we could make some changes rather quickly that would make it fit our needs. Today, I really love how this home works for our family and we love the location. You could not find a better bunch of neighbors!”
In total, Steve and Laura believe they have spent between $3,000 and $5,000 on this labor of love. With their home purchase price of $185,000 and this renovation budget, they still kept the total cost below their $200,000 purchase ceiling with room to afford most of the rest of their plans.
So what’s the takeaway? Kelly says home buyers who have a limited budget in today’s competitive market need to work with an experienced Realtor® who has strategies for finding homes in atypical ways.
“A buyer’s agent needs to really understand the needs of their clients, then use creative strategies for finding properties that might not be widely publicized, and help their clients see potential.” Kelly has done this many times in her career and it is one of the reasons her buyers love her so much and her online profile is filled with 5-star reviews. Way to go, once again, Kelly Moore!
Thank you to Steve and Laura Young for allowing us to showcase their beautiful rehab project. We wish you many years of joy and happiness in your new home!
2020-01-17T14:53:00-07:002022-02-07T07:30:57-07:00Heather Webertag:thechadwilsongroup.com,2012-09-20:4186Is Getting a Home Mortgage Still Too Difficult?<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Blog_Template_Images_-_3_1.jpg" width="750" height="310" alt="Getting a Home Mortgage" title="Getting a Home Mortgage" />
Potential homebuyers are always cautioned to be aware of mortgage lending standards and the difficulty they might face when trying to obtain a mortgage. Credit availability is expanding, making it easier to get a mortgage now than it was a year ago. The market is still tight however, and homebuyers should be prepared to shop around until they find a lender who is offering something that will meet the needs of their family.
Mortgage lending companies have high standards so it is important to make sure you and anyone else who will be included on the mortgage have their credit in check. The mortgage market is strict because lenders do not want to be put in a situation where they are forced to repurchase loans that are not paid on. They also do not want to end up in a litigation situation due to loan issues.
What Has Happened to the Number of Mortgages?
Due to the strict nature and requirements of the lending companies, the number of mortgages given out has significantly dropped. A report by the Housing Financial Policy Center at the Urban Institute showed that about 6.3 million fewer mortgages were given out between 2009 and 2015. The reasons behind this statistic are strict regulations and policies. These mortgages would have been granted if the lending standards where more reasonable.
<img src="https://assets.site-static.com/userfiles/1688/image/seller.jpg" width="400" height="351" alt="Home Buyers in O'Fallon" title="Home Buyers in O'Fallon" class="img_box_left" />Mortgage companies rely on calculations to determine if a home buyer will become delinquent on their payment. They will not give you a loan if you are too much of a risk for them. Credit history has a huge impact on this decision since lenders can see how often you pay back your debts. The history they receive is extensive. This view into your financial past causes lenders to take less risk when lending to you for your mortgage.
The Effect on the Economy
The housing market is recovering at a slower pace than it should since less potential homebuyers are being offered loans. While the market is still recovering with positive trends, fewer buyers can create a strain on other economic factors like home goods or construction jobs.
After the housing market boom and bust, mortgage lenders became stricter in their lending standards. It is not impossible to get a mortgage loan, but it can still be difficult for potential home buyers. Stay on top of your credit and make sure you and anyone else who is applying are in a good financial position so you can be approved for a loan. It is important to research different companies and their requirements to ensure success in getting a mortgage.2019-11-04T09:06:00-07:002021-06-08T16:21:51-07:00Jennifer Smithtag:thechadwilsongroup.com,2012-09-20:41843 Important Questions to Ask Before You Purchase a Home<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Three_Important_Questions_to_Ask_Before_You_Purchase.jpg" width="750" height="410" alt="Questions to Ask Before You Purchase a Home" title="Questions to Ask Before You Purchase a Home" />
It is easy to become overwhelmed when you enter the home-buying market. Friends, family, colleagues, and even acquaintances will give you their opinions if you are a first-time home buyer. While most of them are looking out for your best interest, they are not fully aware of what is happening in the housing market.
It is important for you to be prepared and have your own questions ready. No matter what other opinions you are getting, you are the one buying the home and your comfort level will help make your final decision. Here are three important questions to ask yourself before you purchase a home.
1. Why am I Buying a Home?
Regardless of the finances, it is important to think about what made you want to buy a home in the first place. Usually the reasons don’t have to do with money. Instead, home buyers are focused on how the house will impact their family in the future. A study done by the Joint Center for House Studies at Harvard found there are four reasons people buy a home. Those reasons include schools for your children, a safe environment, more room for your family to grow, and control of your own space.
<img src="https://assets.site-static.com/userfiles/1688/image/Jason_and_Lauren_King_2.JPG" width="450" height="322" alt="First Time Home Buyers" title="First Time Home Buyers" class="img_box_left" />These factors are the most common reasons people look to buy a new home. When you ask yourself why you are looking to purchase a home, do any of those factors come up? Spend time with your spouse or family members who are involved in this decision and determine why you want a home in the first place. Creating this list will help when searching for a home and can help your real estate agent find the best home for your needs.
2. What is the Trend with Home Values?
Our current economy and housing market is strong. That means home values and mortgage rates are increasing. If you are looking to purchase a home but want to stay within a budget, it may be in your best interest to move quickly. It is forecasted for these trends to continue in an upward motion, causing home values to continue to increase.
3. What About Current Mortgage Rates?
The ticket price is not the only thing you should be concerned with when purchasing a home. Mortgage rates are always changing and can have a huge impact on your monthly payments. Current trends show mortgage rates are rising. This is something to consider if you are debating the right time to purchase a home, since the <a href="https://www.marketconnectrealty.com/blog/is-getting-a-home-mortgage-still-too-difficult/" target="_blank">rates</a> may be even higher down the road.
Bottom Line
You and your family are the only ones who can determine the right time to purchase your dream home. It is important to decide exactly why you want a new home for your family and decide on a budget that will be comfortable moving forward. This budget may affect the amount of time you have to search for a home, since home prices and mortgage rates are increasing. 2019-11-04T09:06:00-07:002021-08-13T07:53:53-07:00Jennifer Smithtag:thechadwilsongroup.com,2012-09-20:4183Myth vs Fact: The Relationship Between Mortgage Rates and Home Prices<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Myth_vs_Fact_Interest_Rates.jpg" width="750" height="410" alt="Myth vs Facts about Rising Interest Rates" title="Myth vs Facts about Rising Interest Rates" />
Borrowers have been enjoying historically low interest rates for quite some time. Everyone is in agreement that at some point, those rates will rise once again. There is no consensus on when that time will be and how high they may go.
It makes logical sense that if interest rates rise, home prices could decline. The thinking is that if it costs more to borrow money, buyers will not be able to afford to pay as much for a home, so home prices should decline in proportion. That is not always the case.
<img src="https://assets.site-static.com/userfiles/1688/image/blog_photo1.png" alt="Fact or Myth: When Mortgage Rates Rise, Home Prices Fall" title="Fact or Myth: When Mortgage Rates Rise, Home Prices Fall" height="337" width="338" class="img_box_left" />Rising interest rates generally indicate the economy is strong. Typically, employment is high and salaries are steady and increasing, gving consumers more options with their income. A strong economy usually also indicates a robust housing market. With plentiful qualified buyers looking for homes, home prices will not experience a decline.
When interest rates see an increase, it can actually heat up the housing market, as buyers who are interested in purchasing a home may feel more urgency to buy now rather than experience additional increases in the interest rate.
Home prices are actually impacted more by supply and demand rather than interest rates. If the local market is experiencing low unemployment and steady wages, and if inventory of available homes is low, home prices will not decline, even if interest rates climb.
However, as with all things related to the economy, there is a balance. If there is a significant spike in interest rates, buyers will begin to realize a decrease in their purchasing power, causing them to tighten their budget for their home purchase. When that happens, and the buyer pool begins to shrink, home prices will begin to decline as a result.
An important note, interest rates don't skyrocket all at once. The Fed generally increases them in small increments to test the economy's response, usually less than one percentage point. Since buying a home is one of the most expensive purchases a consumer will ever make, it is not a time to panic or rush. Consult with an experienced real estate agent to guide you to make a wise decision. Then your future will be filled with more satisfaction than regret.
In summary, if you are a home seller, it is a good idea to list and <a href="https://www.thechadwilsongroup.com/sellers/" title="Sell your home">sell your home</a> before interest rates make a significant increase, as your buyer pool may be bigger. Those looking to <a href="https://www.thechadwilsongroup.com/buyers/" title="Buy a home">buy a home</a> should begin consulting with a lender to prepare to qualify for a mortgage that fits your budget, as that lender will keep you apprised of the interest rate future trends. Then when the time is right, you will be fully prepared to make a move.
The Chad Wilson Group has trusted lender partners to refer to our buyers. The reason we trust these lenders is that they have proven themselves over time and through multiple transactions to be knowledgeable, responsive and thorough, and our buyers give them high praise for helping them navigate a successful purchase. We will be glad to share their contact information so you can feel assured that you are starting your home purchase journey with the right first step. 2019-11-04T09:06:00-07:002021-08-13T07:51:09-07:00Heather Weber