The St. Louis mortgage and real estate scene has seen unparalleled changes over the last two years. The good news is that there are proven tips on reducing the amount of stress involved with buying a home.

Here are the top five home buyer tips that can make your local home buying and St. Louis home loan experiences more enjoyable and financially rewarding.

1. Apply for your loan as early as possible which means NOW -

Reports from Washington issued in early January announced that the Fed plans on halting all purchases involving mortgage-backed securities by March of 2010. This was not good news since experts feel this will undoubtedly raise interest rates costing homeowners thousands of dollars in savings.

2. Know what your credit report has to say about you -

Now would be the perfect time to look carefully into your credit files. If there are any errors located on your credit report, correct them now before your lender sees them. If you are looking to attain the best interest rates and lower fees, banks will expect a FICO score of 740 or higher. Anything less than 620 will definitely become a financial hurdle in getting your loan done.

3. What if you have a small down payment or none at all -

Lenders all over the country are tightening their credit belts which means there is less money available for purchasing a home or a St. Louis refinancing. For those who have a down payment, lower rates are in your future. On the other hand, for consumers who have a low down payment or none what-so-ever must look at other options such as an FHA-insured mortgage, a VA or Rural Housing Service loan.

4. Refinance your home but with an ideal twist -

Turn a common financial fumble into a refinancing game winning touchdown by not refinancing from the beginning. Instead of starting over with a new 30-year St. Louis mortgage, ask your lender to crunch the numbers with the remaining number of years left on your old loan. A lower rate may then take you further down that path of saving money. However, if you need financial breathing room and a lower monthly payment would help, then refinancing into a new 30-year term may be the right loan for you. Make sure you discuss the possibilities with your mortgage broker.

5. The extension of the tax credit may serve you well –

The extension of the home buyer’s tax credit would logically be a great reason to move forward with your impending home purchase decision. The savings are quite attractive. Now having said this, be careful as to not rush into an unwise buying decision. This savings should be a “bonus” and not the deciding factor. Keep in mind that staying balanced in this matter is as equally important as not missing the tax savings and lower interest rates which may not happen again any time soon.

Smart home buyers always do some additional research and planning when buying a new home. And this really doesn’t matter whether it is your first or fifth purchase, these five home buying suggestions will work for you as they have already worked for countless millions. For those who have little money for a down payment or who suffer from a lower credit score should probably wait to apply for that new loan. Taking time to correct these financial inadequacies will save you an unbelievable amount of time and money and will ultimately make your future St. Louis home loan a success.

Want to find out more about a St Louis mortgage, then visit Floyd J. Tapia’s site on how to choose the best St Louis home loan for your needs.