Lease up soon? …....When to buy a house? #79

#stlouisrealestateagent #realestateadvice #realestatebroker

I was recently referred by one of my former clients in the form of a FB question….There were like 40 different agents who got shout outs so what I would say is that it’s highly unlikely they will choose me. But let’s look at the question?

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When should you buy a house if you are currently leasing?
a. is that the right question? You’ve already determined that you are going to buy a house.

The right question is not when you should buy a home when you are currently leasing, it’s more like when should I start looking for a home and how should I go about buying a home while I am currently leasing?

Well, it depends

1. You should know that it will take a minimum of 30 days to close on a house in St. Louis if you are using a lender. If you are paying straight cash, could probably close in as little as 2 weeks, but most sellers don’t care if it’s 2 weeks or 30 days.

2. How much work have you done beforehand?

a. Have you chosen a real estate agent?
b. Have you chosen a lender?
b. Have you gotten a mortgage pre-approval?
c. Have you narrowed down a location?

Let’s say it takes you a month to choose a real estate agent. Now you are 60 days out from buying a home.

Let’s say you are 30 days out from finding a mortgage lender, now you are 90 days out from buying a home.

Let’s say you take 30 days to get a pre-approval. Now you are 120 days out from buying a home.

If you found a real estate agent, such as myself, I could certainly point you in the right direction on a mortgage lender and pre-approval and we could probably cut that time down to about 7 days or less.

The difference then between choosing a real estate agent and finding mortgage lender, getting pre-approval, etc. could save you as much as 120 days.

But let’s say you are at 120 days. That’s month 9 of your lease.

You still have to find a home, and then acquire that home.

I don’t think you will be able to buy a home on the first offer in 2021. So what do I tell my clients about this? It depends.

1. Have you narrowed down a location? If you are in St. Louis, do you want to live in Affton or Chesterfield? They aren’t the same.

2. If you haven’t, it could take months to figure out a location.

3. I recommend location first, then house. Here’s why

a. It narrows down the home search. Which makes it easier to find a home and feel comfortable with your offer and eventual purchase.

How?