What do all buyers need to know before they begin?

Should you use a Buyer's Agent?

Are there any inside tips for first-time buyers?

If you are tired of renting and paying somebody else's mortgage, or you simply want a different house, here are a few tips before you start looking for a home:

Prepare Your Financing

Before you can move in, you, of course, have to know how you will pay for the house. A qualified mortgage lender can help you determine how much home you can afford and which mortgage option is best-suited for you. Obtaining your loan pre-approval before starting your home search saves you time, helps you focus your search on the homes you can afford and makes you a better prospect in the seller's eyes, giving you more negotiating leverage.

Have your Down Payment Ready

Know where your down payment cash and closing costs will come from. Most people utilize their savings. However, stocks and bonds, inheritance and monetary gifts from relatives may be other sources open to you. (Always check with your accountant to discuss possible tax ramifications and/or benefits prior to liquidating any source of funds.)

Learn your likes and dislikes

Keep an open mind. Look at different styles of homes. Many times buyers discover advantages to homes they had not originally considered.

Get educated

When you find the home you can see yourself living in, ask The Huff Team for a market analysis (known as a "CMA") showing what similar homes in that area have sold for. This analysis will enable you to make a sensible, educated offer.

Don't listen to "war stories"

Although many mean well, some friends or family members may have had a difficult time with a home sale, and in an attempt to be helpful, might give you erroneous advice. Keep in mind that your own experience will be just that-YOUR OWN experience. Remember that The Huff Team represents your interests and is thoroughly experienced with the real estate process. With the assistance of their knowledge and expertise, buying a home can be a very positive experience.

Before you start looking at homes for sale, be sure you have the necessary information. Here are some areas you will need to explore:

Loan Choices

Which type of loan suits you best? If you will be in the house for several years, a long-term fixed rate might be best. However, if you know you will be moving within 5 years or less and/or your income will be increasing rapidly, you might want to consider an adjustable rate mortgage.

Know your Price Range

How much of a mortgage do you qualify for? This will be based on your income, available cash and the amount of your monthly debts.

Interest Rates

What are current local mortgage interest rates for a fixed 15 and 30 year mortgage? What interest rate is the adjustable mortgage?

The Right Neighborhood

Investigate neighborhoods and learn the price ranges of the homes. There is no sense in looking in an area where homes sell for a great deal more or less than what your budget and/or comfort zone allows.

Needs vs. Wants

Buyers must always make some sacrifices when buying a home (unless you have unlimited funds). Make a list of needs, i.e., the number of bedrooms, bathrooms, school district, proximity to public transportation, need for a home office, etc. Then, make a "wish list" i.e, a large lot, fireplace, hardwood floors, etc. Finally, learn to prioritize. Is the large yard more important than the bay window?

Of course you have heard -Location, Location, Location. However, there are many factors to consider. Obviously style, size and price in addition to location, are very important. If you are planning to move again in a few years, be sure to keep that in mind when buying. Chances are the things that attracted you to the house will more than likely attract another buyer later on.

Watch for growth potential

Look for an established neighborhood where homes have traditionally held their value.

Neighborhood

Seek a desirable neighborhood that has a good history of resale. The Huff Team can provide you with information about what homes in a particular neighborhood have sold for.

Conveniences

Consider the availability of shopping, schools, churches/synagogues, medical facilities and public transportation. Check the morning and afternoon drive time to work.

School District

Check for quality public schools (all school districts have statistics available) whether or not you have school-age children.

Lot/Privacy

Consider how much privacy the house and lot provide. Try to avoid homes that are situated near highways, bypasses or heavily-traveled roads.

The best way to prepare to own a home is to educate yourself about the home buying process. The Huff Team can make it easy for you. Call us to discuss what is involved from "contract to closing". There is no such thing as a "stupid question." Call The Huff Team at (314) 336-1954.

Here are some things you will want to keep in mind:

Ask a lot of questions

Don't be afraid or embarrassed to ask questions. The Huff Team has worked with numerous buyers and knows that you should feel comfortable with their knowledge of the market and negotiating skills. So feel free to ask questions about any part of the real estate transaction. Remember, you should also feel comfortable asking questions of your lender.

Prioritize and be realistic

Determine your wants and needs within your budget and prioritize your list. It is easier to negotiate when you have a clear idea of what you want.

Educate yourself about mortgage choices

Investigate the different loan options and decide which is best for you. You may want to interview several lenders to learn about the many mortgage products available. You will more than likely learn something new from each lender you contact. Remember that lenders compete for your business. Look for the mortgage that best suits your needs.

The lender you choose will be one of the most important decisions you make when buying your home. Keep the following in mind when making your choice :

Is he/she providing clear information about the costs of the loan?

Are you comfortable with him/her as your loan officer?

Are your questions being answered clearly and concisely?

It is very important to get your loan from a reputable lender. It can cost you a lot of money if you take a loan from the wrong company.

Get pre-approved before you start looking

Many people enjoy looking at potential homes to purchase. However, many also skip the important step of getting their mortgage in order before they start to look. Getting pre-approved for a loan BEFORE you start looking is crucial. Your pre-approval lets you know how much you can afford to pay, which in turn, determines which homes you should be looking at. Don't make the common mistake of looking at homes, finding one you love, and THEN discovering from your lender that you cannot afford a home in that price range, even though you originally thought you could. Your pre-approval will eliminate this mistake. More importantly, it will also make you a stronger buyer in the eyes of any seller who may have others wanting to buy his home as well. Your pre-approval will give you the advantage over competing buyers.

There are many reasons to use a Buyer's Agent when starting the home-buying process. Below are a few of the more important ones:

You don't pay your Buyer's Agent--the seller does

In Missouri, a Buyer's Agent is paid from the commission provided by the seller when the home is listed. As the buyer, you do not incur any extra charge to be represented by a Buyer's Agent.  Logically, it is in your best interest to use a Buyer's Agent to represent your side in the real estate transaction at no extra cost to you.

Representation

Your Buyer's Agent will provide you with your own representation in all aspects of the sales transaction. Keep in mind that the Listing Agent, by law, represents only the interest of the seller-not yours. A qualified, experienced Buyer's Agent is invaluable when dealing with the sales process from start to finish, including writing the contract to fit your needs, price negotiation, building inspection resolution, loan commitment, coordinating the involvement of the mortgage lender and the title company, and facilitating the closing. Buying a house is a lot more work than simply writing a contract and handing over the keys, so it makes "common sense" to use a professional.

Access to Available Property

A Buyer's Agent will give you access to a wide variety of listed and non-listed property. Many people buying a home realize quickly that the homes listed in the classified section of the newspaper are only a small portion of all of the homes that are actually available for sale. A Buyer's Agent will be able to provide you with all of the homes in the MLS computer system, as well as notify you of homes that are to be listed soon.

Also, please note that numerous sites on the internet post information about homes for sale. However, many sites will present only the homes they want to sell, and not all of those available in the area you request. In addition, since each year more buyers are using the internet to search for homes, many sites are responding by posting a lot of listing information. As a result, much of it is not updated regularly. Do not always assume that the home on an internet site is still actively "for sale" even when the site says it. Many times, it takes sites several weeks to update their information concerning homes that are under contract or that have been sold. To have access to all of the homes and current information, use a Buyer's Agent.

Comparable Market Analysis

A Buyer's Agent will inform you about what similar homes in your chosen area have sold for. You should not write a contract without this information. With the help of your Buyer's Agent, you can use the Comparable Market Analysis to determine your purchase offer. Your Buyer's Agent will also tailor the sales contract to your needs. Although the mortgage, building inspection, and title/survey contingencies are built into the contract, there are other contingencies that can be added.

Those who are new to the home-buying experience often worry about the money involved. But buying a first home is not impossible, even for those on a limited budget. You should, of course, save all you can for closing costs and a down payment. For further help:

Revisit your Wish List

Reconsider what you're looking for in a first home. Find out what you can afford now, and consider buying a starter home that requires a small down payment with the idea of moving up in a few years.

Take advantage of special programs

Look into special low- and no-down payment programs like loans guaranteed by the Department of Veterans Affairs (VA) and Federal Housing Administration (FHA). Some areas also have local programs for low- and moderate-income families or first-time buyers, offering lower interest rates or down payments.

Gather gifts

Check with parents and relatives for monetary gifts that can go toward a down payment or closing costs.

Consider "sweat equity"

If you can fix up a home that's in less-than-perfect condition, you can increase the value of your investment faster. Ask about special combination loans that provide fix-up funds as well as purchase money.