Tag Archives: home buying

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5 To-Dos Before Buying a Home

Are you about to begin the hunt for your future home? We understand that the home buying process can become overwhelming, which is why we’d like to offer you a little insight. Start your home buying journey off right by completing this checklist!

  • Strengthen your credit.

A 620 FICO score means you can get a mortgage, but that doesn’t mean you’ll want to. According to recent data from myFICO.com, someone with the minimum credit score can expect to pay over $82,000 more in interest over the life of a $250,000, 30-year mortgage than a person with a 760-plus score. Working on making your credit higher, such as paying bills on time, will help lower your interest and save you some big bucks.

  • Get preapproved for a mortgage.

This is a very important step, and sadly, it’s missed frequently. Getting preapproved means you’ll have some advantage over other potential buyers. This letter shows Realtors and sellers that you’re serious about buying and provides evidence that you have the funds to pay for the home. Set up an appointment with us to get preapproved and utilize our handy-dandy mortgage calculators!

  • Figure out how much house you can afford.

You may get preapproved for a certain amount and have a good portion of money put away in savings, so why not spend it all on a home? Even though you have the funds, be sure to think ahead to future bills and emergency expenses that will have to be paid. You’ll also need to plan on spending in the range of 1-3% of the home’s price for closing costs. It’s important to downsize your budget a bit in order to make future costs and purchases feasible.

  • Get a real estate agent.

Hiring an agent does cost money, but they will help you through every step of the way. Real estate agents will make sure all of your closing documents are in order and give you recommendations on trusted inspectors, which will take a lot of stress off of you. They supply you with the knowledge of the buying process, so you don’t miss any steps.

  • Schedule an inspection.

Once you find your home sweet home, it’s important to cover your bases. Schedule an inspection to be sure a new HVAC system or roof isn’t in the near future. You’re going to be spending a large sum of cash, so spending a little more to have everything checked out is a good plan of action.

Congratulations! You’re now on the right track to becoming a homeowner. Peoples Bank & Trust offers mortgage options that fit your lifestyle. Stop in or give us a call to discuss your options today.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS# 407724

home

5 Creative Ways to Save for Your New Home

You’ve made the decision that you are tired of renting and ready to step into the world of home ownership. Good for you! You may be wondering what your next steps should be in order to be financially prepared for this major investment. Here are some creative ways to ramp up your savings for this exciting adventure!

1. Consider a Move Now

Is the place you’re living now truly the most cost effective for your budget? Consider moving to a temporary location that can significantly trim your monthly expenses. This is especially helpful if your home purchase is far into the future. No, it might not be the nicest place you’ve ever lived in, but imagine your dream home even closer on the horizon because of the sacrifices you are making right now. Place all of the added savings directly into your savings account.

2. Show Up for Your Budget

Many people begin the new year with excitement about all of the ways they are going to change their purchasing habits in order to achieve their big financial goals. However, like most resolutions, they are abandoned within the first few months. This is the time for you to show up for yourself, your goals and your budget. How? By continually reviewing how you are meeting or faltering your savings goal on a weekly basis. This will keep the financial goal of buying your first home at the forefront of your mind.

3. Purge and Sell Your Belongings

This is a great way to prepare for the big move in more ways than one. Like many adults, we have plenty of items that we don’t need or use gathering dust in our closet. It’s time to part ways and sell them at a garage sale or post them online. Put the profits directly into saving for the down payment that will likely be a minimum of 3.5 percent.

4. Look for a Side Gig

Every little bit counts! If you even have ten hours a week extra that you could commit towards another job, it can be a big boost to your savings. Whether it’s freelance work in an area you are experienced in or applying to be a server at a local restaurant, this is a great way to see your savings climb.

5. Automate Savings

Although this isn’t exactly creative, we would be remiss to not include this incredibly important part of any savings plan. For every amount of money you take in, automate a percentage of that towards your savings account to take any of the temptations of spending out of the mix.

Open a savings account today to begin to build the funds you need for your dream home.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Three Things to Look for in a Starter Home

If you’re in the market for your first home, congratulations! Becoming a homeowner is an exciting step on your financial journey. At Peoples Bank & Trust, our dedicated mortgage lenders are here to help you find the best financing option for your new home. Remember to stop in and secure a pre-approval letter before you start your home search.

 

After speaking with a mortgage lender to help determine your family’s ideal price point, it’s time to start viewing potential homes. During this process you’re bound to find a home you’ll fall in love with, and others that may send you running for the hills. As you ride this rollercoaster of an experience, we recommend searching for the following three things in your family’s ideal new house:

 

  1. Good Bones. Starter homes are a great option to find a great house within an affordable budget. To ensure your investment lasts for the long-term, we recommend taking a hard look at any foundational cracks, leans, or other structural ailments. While the rest of the house could look fantastic, these three issues should be instant red flags signaling you to continue looking at other homes.
  2. Cohesive Neighborhood. The people you surround yourself could be the individuals you see at 6:00 AM taking the trash out, or the partiers you have to ask to turn down the music at 11:00 PM. As you tour properties, don’t be afraid to chat with any potential neighbors and see if there is any information they can give on families you’ll be living alongside.
  3. Suitable Layout. While some renovations are certainly possible when purchasing a starter home, obstacles such as load-bearing walls could limit your expectations. Consider the overall layout of the home at the showing, and see if you could picture yourself the way it is. If the answer is no, then you may want to find a few backup options should the renovations not be available within your budget.

 

 

The perfect home will look different to everyone. If you’re ready to start searching for your family’s new house, our experienced mortgage lenders are here to help. We work with many successful local realtors, and we would be happy to refer you to the one that fits your needs best. Give us a call or stop by to begin the search for your home today.

 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS# 407724

Home Buying in 5 Easy Steps

Mortgage

So you’ve decided to buy a home. Congratulations! You are about to embark on one of the most important purchases of your life. With so many options and financial decisions ahead of you, here are some key tips we want to share to help determine your ideal path to home ownership.

  1. Evaluate your Financial Readiness

There are many factors in determining your current financial capabilities when considering the purchase of a home. Add up your current monthly expenses, except for your current rent payment, and see if a mortgage payment can effectively be added without diminishing your overall monthly budget. If the answer is yes than it’s time to check your credit history! Every bank, and the individual loan types they offer, have various requirements. Take the time to research these programs and determine which suits your specific needs.

  1. Get a Mortgage Pre-Approval

Once you know your ideal lending option, it’s time to get pre-approved! By speaking with one of our experienced lenders you can determine if you qualify for various loan offerings, and at what amount and terms.

  1. Determine Your Overall Budget

Even if you qualify for more, it may be beneficial to cap your budget at a smaller amount. This will help you prepare for any unforeseen expenses, or higher than anticipated utility bills. Other factors to consider in setting your budget are savings goals, planned future expenses, additional costs to commute, and any unplanned repairs or renovations to the home.

  1. Find Your Perfect Home

Take your time while searching for your perfect home. Most home buyers stay in the same home for nine years before moving again, so you want to make sure this new house has everything your family needs. By working with a trusted local realtor you can ensure that you see all available properties within your budget, and act on new listings quickly!

  1. Close the Deal

Once you’ve made an offer on your dream home it’s time to make the purchase official! Work with your realtor to sign the purchase agreement, and close the transaction. Your mortgage lender at Peoples Bank & Trust will work to ensure the funds for your home mortgage arrive quickly and hassle-free. Once the t’s are crossed and the i’s are dotted, you are officially a home owner!

After becoming an official home owner it’s time to celebrate! You did it! At Peoples Bank & Trust we want to help guide you through your home buying adventure! Give us a call at (636) 528-7001 or apply online today to get started.

 

Peoples Bank & Trust Co.

NMLS# 407724

Equal Housing Lender

Member FDIC

Choosing Your Ideal Mortgage Lending

Mortgage Lending

Mortgage Options

Winter is the ideal buyers-market for purchasing your next home. With motivated sellers, bargain prices, and available professionals, the chilly months offer the perfect opportunity to find your ideal home at an ideal price. When it comes to searching for your next abode be sure to begin by securing an approved mortgage. At Peoples Bank & Trust we offer a variety of mortgage options to suit every family and circumstance:

FHA Loans: Popular among first time homeowners and those rebuilding credit, the Federal Housing Administration backed loan, enables buyers to obtain a mortgage with little down, even if they have a lower credit score. Mortgage insurance is required for FHA loans, which adds an additional monthly cost that is included in your mortgage payments.

USDA Loans: For those looking to move to rural areas, the United States Department of Agriculture offers loans to aid low or moderate income families in buying, repairing, and renovating homes. There are three categories of loans for various incomes and buying intentions.

VA Loans: For those who have served in the military, or are currently serving, Veteran Affairs offers home loans in conjunction with local lenders. This loan requires no money down or mortgage insurance.

Once you’ve spoken with one our helpful lenders, the hunt is on for the perfect home! Be sure to keep these simple steps in determining the ideal home for you and your family.

  1. Look at homes only within your budget.
  2. Decide your ideal area, and your potential commute.
  3. Plan for the future, if your family is growing, additional bedrooms may a something to consider.
  4. Think for the seasons. Make sure that if Mother Nature throws some bad weather your way the house will remain safe and stable.
  5. Work with a realtor who knows the area.
  6. If you have questions, ask! Whether it’s about searching for your home, or extending your financing, make sure you’re educated in all of the options in front of you.

At Peoples Bank & Trust we are here to assist you with all of your home financing needs. Learn more about our mortgage lending options or visit your local bank branch. No matter the season, we’re here to help you on your way to home ownership.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS #407724