What To Know Before Starting The Home Buying Process

Before shopping for a St. Louis or St. Charles County home, there are some important things you should know. Once you’ve learned how to start the home buying process, you’ll be better able to get the right home at the right price. Consulting a qualified lender to find out how much house you can afford and getting preapproved for a loan is always a good place to start. Below we’ve put together a list of frequently asked homebuyer questions and our answers to help you prepare and start the home buying process on the right foot.

 

How much house can I afford?

When determining how much you can afford, one must look at savings, income and the current interest rates to figure the maximum price you can spend on a home. Most lenders recommend that you spend no more than 28% of your monthly income on mortgage payments. Also, don’t forget to consider any monthly fees that may be included if you choose a condo/low maintenance lifestyle.

 

What are the current interest rates?

Interest rates fluctuate daily based on the market and your individual rate will additionally be based on your credit history. Talking to a qualified mortgage loan officer will help you determine your rate. Contact The Boehmer Team if you would like the names of some reputable mortgage loan officers in St. Louis City, County, St. Charles County and surrounding areas in Missouri.

 

What is an appraisal and how much does it cost?

An appraisal is a valuation of a property that determines property value for tax and home loan purposes. Currently an appraisal costs between $350-$500 in the St. Louis, Missouri area.  This is considered part of your closing costs. Keep in mind that prices may vary depending on the size of the home and the amount of land included.

 

What inspections will be required & how much do they cost?

A building inspection is the best opportunity to learn about your new home. This tells the buyer about the condition of the mechanical systems, roof, plumbing and electric just to name a few. Currently in the St. Louis, Missouri area a building inspection runs approximately $500-800 and is based on the sale price of the home.

 

Additionally, you can get termite inspections ($80-$100) and radon inspections ($100-$150). There are several other items that you can also inspect for including sewer laterals, septic systems, swimming pools, wells and environmental testing if desired.

 

What is a home closing?

The home closing is the final transfer of the ownership of a house from the seller to the buyer, which occurs after both have met all the terms of their contract and the deed has been recorded. This term can also be used to explain the timing of when the deed/ownership of the house will be transferred to the new owners. The closing usually takes place at the office of someone like a title officer, escrow officer, or real estate lawyer (someone who is licensed in initiating the transaction and purchase agreement).

 

How much will the closing costs be?

The amount of closing costs will depend on the amount of points a buyer will be paying with their mortgage loan. (Each point is 1% of the mortgage loan amount). Closing costs vary depending on the type of loan you are using.  They can include title fees, origination fees, pre-paids including insurance, setting up your escrow account and survey to name a few. Depending on the loan amount and loan type, closing costs usually run approximately 2-3% of the loan amount. Your loan officer will be able to give you more accurate information on what your total closing costs will be.

 

I’m also thinking of buying a car, a boat or other big-ticket item. Should I wait?

Do NOT make any large purchases while in the home buying process as it could affect your ability to get a mortgage loan. Consult your loan officer before opening any charge cards and obtaining any other type of loan or credit.

 

 

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Now that you have the information you need to start the home buying process visit TheBoehmerTeam.com to see homes currently for sale in the St. Louis and St. Charles County areas of Missouri. You can narrow the results by the area and price range of your choice in addition to many other advanced features. Our website gets listing updates multiple times daily and has features like saved search, saved favorites and email notifications of new homes that meet your criteria as the come on the market. Contact us if you have any questions about the home buying process.

 

Answers to Homebuyers’ Most Asked Questions

Every homebuyer is going to have questions when going through the process of buying a home. Knowing what questions to ask and taking into account the answers will empower buyers to make the right decisions for their situation. The Boehmer Team has years of experience helping buyers with answers to the important questions that arise during the home buying process. 

What is the best way to begin the home buying process?

The best way to begin the home buying process is to get pre-approved for a mortgage loan by a reputable local lender. Getting pre-approved before shopping for a home will help you determine how much you can afford and will show sellers you are serious and capable of purchasing their property when you make an offer. The Boehmer Team feels it is important that the lender you choose can be reached easily and is readily available with answers to questions based on your individual needs.

What is this property really worth?

Real estate agents cannot ethically tell a client what to offer for a home. However The Boehmer Team can look at dozens of comparable properties for sale, along with recently sold properties to help determine value. They will look at updates, custom features, lot size, location and more. They can also tell you how long homes in the area are staying on the market and the percentage of asking price that sellers are getting. 

What is the best way to begin the home buying process?

Not all sellers are willing to negotiate asking price or assist with any closing costs. If your strategy is to make low offers, be prepared to make several offers on properties before finding a seller willing to bargain.  Ultimately it is more important to pay market value than a price with an emotional tie to it or unrealistic price based on what a seller still owes on the property. If you are simply looking for a great deal you can always look at foreclosures and fixer-uppers. 

What’s wrong with this house?

The seller says everything is perfect, but unless it is new construction that is rarely the case. The Sellers Disclosure document should contain information on the age of the roof, the age of the appliances, the type of foundation and more. Any other issues most often will appear on a home inspection. The Boehmer Team highly recommends getting a home inspection for any home purchase. Buyers also can also get radon, termite and other building inspections. If a buyer still has a question about a home that is not disclosed, ask the seller directly.

Is this home on a floodplain?

FEMA provides free online maps that show if a home falls within a flood plain. There are different types of floodplains that require different types of insurance. The Boehmer Team can recommend companies that offer flood insurance for different situations. 

Do you have the receipts and warranties for the home’s mechanical systems?

This is not something that buyers have much control over. If a seller purchased a new furnace before putting the home on the market and doesn’t leave any information on where the furnace was purchased, the buyers won’t have many options if the furnace malfunctions. However a home warranty can be purchased at a reasonable yearly fee to cover these types of situations and offer peace of mind.

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When you are ready to buy a home talk to The Boehmer Team. Experience and knowledge have made The Boehmer Team one of the top real estate teams in Missouri. They can help get the answers you need to make the best decision for you.

3 Things To Do Before Seeing Homes For Sale

If you are in the market to buy a St. Louis or St. Charles County, Missouri area home, chances are you have already looked online and are ready to start touring homes for sale in person.  But are you really ready? The following three things will prepare your for being the best home buyer and give you an edge while home shopping in a competitive sellers market.

1. Prioritize Your Must Haves

What price range, area and amenities must a home have for you to purchase? Be specific about your must haves and list the amenities that are deal breakers.

How many garage spaces do you require?

If you absolutely require a basement or a garage, don't waste time looking at listings that don't have these features. If proximity to work or schools is critical, don't wander outside the boundaries of the school.

If you are taking your current furniture with you to your new home, measure it and bring the measurements with you when you look at homes to be sure it will fit through the door and in the rooms.

2. Find a qualified REALTOR with experience in the area.

Find a reputable licensed agent to view homes for sale. A REALTOR will not only get you in to see homes, he or she will be able to answer your questions, or get answers from the listing agent and assist you with the home buying process at every step.

Why not just call the listing agent? A listing agent is contracted to represent the sellers’ interests and get the most money for the home. So it is important that you have a buyers’ agent who works for and represents your interests as a buyer.  An experienced agent or team will protect your interests and negotiate the best price for you.

REALTORS Linda and Kelly Boehmer

A REALTOR can also help buyers find homes they may have missed due to not being listed in the multiple listing service. Real estate agents have industry connections and may know of great homes that are coming soon that haven’t even been listed yet. Having your own buyers’ agent is also a great resource for all your needs throughout the real estate transaction, like recommending mortgage loan officers, title companies, and inspectors.

3. Get Pre-Approved For a Mortgage

If you are serious about buying the perfect home in the current sellers market, get pre-approved for a mortgage loan before touring homes for sale.

Get pre-approved for a mortgage before seeing homes for sale.

When the best homes sell in a few days or even a few hours, you won’t have time to research mortgages and get pre-approved before that perfect home is under contract. Those who are pre-approved are able to put a contract on “the one” the moment they find it.

While you can put an offer on a home without pre-approval, pre-approved home buyers’ offers compete better against offers without pre-approval.  They signal to the sellers that the buyer has the ability to purchase the home and is less likely to pull out of the deal due to financial reasons.

In addition, getting pre-approved will help clarify the price range of homes you can afford and the amount of monthly mortgage payments.

~ Try our helpful Mortgage Payment Calculator. ~

The Boehmer Team

The experienced REALTORS on The Boehmer Team work with buyers to ensure they have an edge over the competition. Having a team means having more connections and thus more opportunities to find the perfect home despite the current competitive market.  We strive to provide our clients with the best service in the business. Please contact us to be your partner in finding and buying your next home.

What to Know When Getting Homeowners Insurance

Part of buying a home in St. Louis or St. Charles areas of Missouri is procuring homeowners insurance. While we recommend that everyone shop around, we turned to our favorite homeowners insurance expert, Craig Phillips, owner of Craig Phillips Agency at American Family Insurance, to get an expert opinion on the process.

Homeowners Insurance Mistakes to Avoid

The Boehmer Team: What is the biggest mistake that homebuyers make when procuring homeowners insurance?

Craig Phillips: More times than not, homebuyers do not take into account the cost of homeowners insurance or whether or not they can even buy homeowners insurance into their thought process when beginning the home buying process.  There are many factors that contribute to insuring their dream home and the cost they will pay can vary widely from one person or from one property to another, which could lead to them not getting the home they love.  They really should contact our agency the moment they consider buying in order to get prequalified per se.

How to Get Homeowners Insurance

The Boehmer Team: What is the best process by which homebuyers should go about procuring homeowners insurance?

Craig Phillips: All homebuyers, whether it is there first or last home purchase, should meet with a local reputable insurance agent in order to discuss the type and amount of protection they will need for their dream home.  Contrary to popular belief, all insurance companies and definitely not all insurance policies are equal.  The first step is to establish a face-to-face relationship with that local agent and go through the necessary steps to determine how much coverage is needed to protect their home, which by the way, isn’t equal to the purchase price of the home.  Coverage is the key.  Don’t let yourself be underinsured.

What to Look At When Getting Homeowners Insurance

The Boehmer Team: What is the main thing (or things) that people should focus on when obtaining homeowners insurance?

Craig Phillips: There is a lot to buying and maintaining insurance for your family.  There are few things that a homebuyer should do in order to protect their dream home the best way.  First, create that face-to-face relationship with a local reputable insurance agency like ours and go meet with them in person.  I know, that is contrary to what the internet world we live in says to do, but personal relationships do matter, especially when it comes down to protecting what may likely be the largest investment you will ever make.  Second, don’t get so hung up on finding the cheapest price that you sacrifice coverage or a relationship.  If you can’t afford the insurance, then you should really be shopping for a less expensive house.  Third, don’t forget to discuss life insurance with your agent and buy an adequate amount of life insurance outside of insurance obtained at work to protect this dream home for your family.  Tragedy can strike at any time to any family, so be prepared and your family will be able to maintain the family home for years to come.

The Craig Phillips Agency

The Boehmer Team: What makes Craig Phillips Agency at American Family Insurance stand out from other homeowners insurance companies?

Craig Phillips: At the Craig Phillips Agency, we believe your insurance is more than just a transaction between you and American Family Insurance.  We believe in providing you with best in class customer service and the peace of mind that you have the necessary financial protection in place to provide for you and your family in the event of a tragedy.  We put the customers’ needs first above anything else and always focus on protecting your family the best way we know how.

The Boehmer Team would like to thank Craig Phillips for his expert opinions on obtaining homeowners insurance in the St. Louis and St. Charles areas of Missouri. It is always good to shop around, but if you would like to contact Craig you can find him on Facebook at https://www.facebook.com/craigphillipsagency or by calling or emailing him at 636-947-4080 or cphilli3@amfam.com. If you are currently looking for a new home, search on our website www.TheBoehmerTeam.com.