An 8 Step Guide to Buying a Home in Old North St. Louis

The staff of the ONSL Restoration Group can tell you what buildings are available, take you on a tour of the building, and introduce you to the neighborhood. Call 241-5031 to set up an appointment. Consult our Property for Sale page for current property that is available.

At a minimum, you need to have copies of bank statements, credit card and other loan information, and tax returns for the last three years. Also bring paycheck stubs or other income information. These records will be used by mortgage officers and credit counselors to determine whether you are ready to qualify for a mortgage. If you do not have other credit bills, put together records of your utility payments or rent. The point of this is to be able to have proof that you have been successful in paying off your bills and that you have good financial sense.

There are a number of free credit counseling agencies in the City of St. Louis that can review your finances and clarify whether you are ready to own your own home. We would recommend Peterson Housing, at 3115 S Grand, phone number 664-5051. Remember, it is not uncommon for many of us to have issues that we need to deal with before we can qualify for a home mortgage. These include unpaid student loans or other credit bills, late payments, bankruptcies, foreclosures, etc. Often times, credit counselors will recommend an additional six months of on-time payments before they ask a bank to look at your situation; this will help improve your chances to qualify for a mortgage.

The first idea is to think very carefully about how much work you need to do to make the house as liveable as you need it. For example, you may choose to not finish a third floor or a back room, or install a third bathroom, if you know that you do not need it. Alternatively, you can work with your lender to do some of the basic work yourself like painting.

Some people do just pay cash for their building. However, that also means that they are committing themselves to rehabbing the building on their own. This option is only realistic for someone who has the time, patience and skill to manage a long-term rehab project. While it may seem more expensive, it is better in the long run for you to get a mortgage and pay for the work up front. For each $10,000 of a permanent mortgage, you will pay $100 in your monthly mortgage payment.

Most of the older homes in the Old North St. Louis Restoration Group need some form of rehab. Before you buy a home, you should be clear about the work that needs to be done. Special loans now available provide a construction period for work to be completed on the building. In some cases, you might need an architectural drawing to help guide the rehab work; at least you need a plan of action. The ONSL Restoration Group will help you determine the scope of work that is needed, and how much it will likely cost.

The best place to start is a bank where you have some history, where you have a bank account, credit card or car loan. However, the credit counseling agency should have contacts with local banks and can help you find the best deal. These credit counseling agencies also have access to special funds that can cut the cost of the down-payment that you will pay when you close on the building.

"Closing" on the building means that you take title of the building and it is time to begin any repair work that is necessary. The ONSL Restoration Group can help you manage the rehab project, but you will also need to take an active role. You will need to monitor work as it goes on, and also arrange for payment of subcontractors and other workers when work is completed.

Welcome to your new home!!

For more information about housing opportunities in Old North St. Louis, contact:

Old North St. Louis Restoration Group
2800 N. 14th Street
St. Louis, MO 63107
(314) 241-5031